6) Ewing Incorporated makes one product and has provided the following information: Budgeted selling price per unit. Budgeted unit sales, February Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense $ 100 per unit sold 10,000 units 5 pounds $ 3.00 per pound 2.5 direct labor- hours $ 18.00 per direct labor- hour $ 11.00 per direct labor-hour $ 2.70 per unit sold $ 70,000 per month The estimated net operating income (loss) for February is closest to: A) $6,000 B) $28,000 c) $125,000 D) $56,000
6) Ewing Incorporated makes one product and has provided the following information: Budgeted selling price per unit. Budgeted unit sales, February Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense $ 100 per unit sold 10,000 units 5 pounds $ 3.00 per pound 2.5 direct labor- hours $ 18.00 per direct labor- hour $ 11.00 per direct labor-hour $ 2.70 per unit sold $ 70,000 per month The estimated net operating income (loss) for February is closest to: A) $6,000 B) $28,000 c) $125,000 D) $56,000
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 6E: Computing unit costs at different levels of production
French Fragrances, Ltd. budgeted for 12,000...
Related questions
Question
![6) Ewing Incorporated makes one product and has provided the following information:
Budgeted selling price per unit.
Budgeted unit sales, February
Raw materials requirement per unit of
output
Raw materials cost
Direct labor requirement per unit of
output
Direct labor wage rate
Predetermined overhead rate (all
variable)
Variable selling and administrative
expense
Fixed selling and administrative
expense
$ 100 per unit sold
10,000 units
5 pounds
$ 3.00 per pound
2.5 direct labor-
hours
$ 18.00 per direct labor-
hour
$ 11.00 per direct
labor-hour
$ 2.70 per unit sold
$ 70,000 per month
The estimated net operating income (loss) for February is closest to:
A) $6,000
B) $28,000
c) $125,000
D) $56,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41715c94-d51a-4fc2-a69b-451bd3c75aab%2F2e12a582-b150-4595-8556-e93a9ed37432%2F8nqblrk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6) Ewing Incorporated makes one product and has provided the following information:
Budgeted selling price per unit.
Budgeted unit sales, February
Raw materials requirement per unit of
output
Raw materials cost
Direct labor requirement per unit of
output
Direct labor wage rate
Predetermined overhead rate (all
variable)
Variable selling and administrative
expense
Fixed selling and administrative
expense
$ 100 per unit sold
10,000 units
5 pounds
$ 3.00 per pound
2.5 direct labor-
hours
$ 18.00 per direct labor-
hour
$ 11.00 per direct
labor-hour
$ 2.70 per unit sold
$ 70,000 per month
The estimated net operating income (loss) for February is closest to:
A) $6,000
B) $28,000
c) $125,000
D) $56,000
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