LouAnne's Widgets has the following sales and production for the nextquarter:JanuaryFebruaryMarchSales4,000 units 7,000 units 9,000 unitsProduction 4,600 units 7,400 units 9,200 unitsEach unit requires 1/2 DLH to manufacture and each DLH is paid $18. Laboris paid in the month incurred.FOH is applied based on DLH. Estimated variable FOH for the year isexpected to be $500,000 and estimated DLH for the year are expected to be100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 ofthat amount being depreciation of factory equipment and building. FOH ispaid in the month incurred.How much cash will LouAnne need on hand to pay for February's total factoryoverhead costs?

Step 1 Factor overhead cost is the cost which is inured from procurement of raw material to…

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Business

Accounting

How much cash will LouAnne need on hand to pay for February's total factory overhead costs?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

LouAnne's Widgets has the following sales and production for the next
quarter:
January
February
March
Sales
4,000 units 7,000 units 9,000 units
Production 4,600 units 7,400 units 9,200 units
Each unit requires 1/2 DLH to manufacture and each DLH is paid $18. Labor
is paid in the month incurred.
FOH is applied based on DLH. Estimated variable FOH for the year is
expected to be $500,000 and estimated DLH for the year are expected to be
100,000. Fixed FOH is estimated to be $51,800 per month with $2,590 of
that amount being depreciation of factory equipment and building. FOH is
paid in the month incurred.
How much cash will LouAnne need on hand to pay for February's total factory
overhead costs?

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