its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. O a. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers

its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. O a. 4.08 b. 8.08 С. 5.08 d. 2.08 е. None of the given answers

Name: Company XYZ uses labor hours to allocateits manufacturing overhead. T
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Description: Company XYZ uses labor hours to allocateits manufacturing overhead. The direct laborcost rate is $8 per direct labor hour. Thecompany estimates that the number of laborhours to be used next month is 600,000labor hours. The estimated variableoverhead

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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Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 30,000 units per month is as follows: Direct materials. Direct labor Variable manufacturing overhead. Fixed manufacturing overhead.. Variable selling & administrative expense Fixed selling & administrative expense. $20.40 $8.70 S1.20 $10.60 $2.60 $5.90 The normal selling price of the product is $51.10 per unit. Current demand is 25,000 units. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price of $44.70 per unit This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $0.50 less per unit on this order than on normal sales. By how much would this special order increase (decrease) the company's net operating income for the month? It the change…
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6. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL MANUFACTURING (PRODUCT) COSTS?
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Additional Information: a. Sales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. b. Direct material cost is a variables cost and other production overheads are fixed cost. C. Direct labour consists of machine operatives' wages and the total wages behave as a step cost: Output Up to 7,500 units Over 7,501 and up to 11,000 units Over 11,001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 1.200 fils per unit. Total Direct Labour cost BD 4,850 BD 8,563 BD 10,484 d. Required. the budgeted sales revenue under the output of 11300 unit is:
Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Variable Cost per Unit Sold Fixed Cost Advertising Sales salaries and commissions Shipping expenses per Month $ 280,000 $ 260,000 $ 20.00 $ 11.00 The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production.…
The manufacturing costs of Callico Industries for three months of the year are provided below: Total Cost Production (units) April $119,100 283,700 May 92,000 168,600 June 101,600 233,700 Using the high-low method, the variable cost per unit and the total fixed costs are a. $0.24 per unit and $51,012 Ob. $2.40 per unit and $5,101 Oc. $4.32 per unit and $5,101 d. $0.43 per unit and $25,506
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A company absorb overheads based on output levels. During the period the company over-absorbed overheads by ghc6000 based on 5000 budgeted units. The actual overhead cost for the period is ghc34000. The company estimates that the total of direct material and direct labour cot for producing a unit of the product is ghc50 and expects a margin of 20%. What is the selling price per unit? A. Ghc71.5 B. Ghc72.5 C. Ghc73.5 D. Ghc74.5
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7 EB7. 4.4 A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following independent allocation bases? expense: $750,000 C. Estimated machine hours: 150,000 A. Budgeted direct labor hours: 90,615 B. Budgeted direct labor
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