Artisan Creations Co., November Production Activity: Category Direct Materials Direct Labor Variable Overhead Variable Selling Fixed Overhead Amount $150.00 per unit $40.00 per unit $25.00 per unit $15.00 per unit $75,000 per month Fixed General and Administrative $60,000 per month Units Produced 300 per month Units in Beginning Finished Goods 0 Units Sold Selling Price 520 $550 per unit Calculate the company's degree of operating leverage. Round to 2 decimal places.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EA: A company estimates its manufacturing overhead will be $750,000 for the next year. What is the...
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General Accounting

Artisan Creations Co., November Production Activity:
Category
Direct Materials
Direct Labor
Variable Overhead
Variable Selling
Fixed Overhead
Amount
$150.00 per unit
$40.00 per unit
$25.00 per unit
$15.00 per unit
$75,000 per month
Fixed General and Administrative $60,000 per month
Units Produced
300 per month
Units in Beginning Finished Goods 0
Units Sold
Selling Price
520
$550 per unit
Calculate the company's degree of operating leverage. Round to 2 decimal
places.
Transcribed Image Text:Artisan Creations Co., November Production Activity: Category Direct Materials Direct Labor Variable Overhead Variable Selling Fixed Overhead Amount $150.00 per unit $40.00 per unit $25.00 per unit $15.00 per unit $75,000 per month Fixed General and Administrative $60,000 per month Units Produced 300 per month Units in Beginning Finished Goods 0 Units Sold Selling Price 520 $550 per unit Calculate the company's degree of operating leverage. Round to 2 decimal places.
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