Kirsten believes her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor Intensive. During the period, the company produced 4,700 units of Product A requiring a total of 770 labor hours and2,200 units of Product B requiring a total of 170 labor hours. What allocation rate should be used if the company Incurs overhead costs of $15,980?Multiple Choice$17.00 per labor hour$2.32 per unit$20.75 per labor hour for Product A and $94 per labor hour for Product BNone of these.

Overhead is applied to the production cost on the basis of various activity cost pools like direct…

Answered: Kirsten belleves her company's overhead…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Godo
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: Direct material: 4 pounds at $10.00 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month per Unit Sold. Advertising Sales salaries and commissions Shipping expenses $ 19.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: a. Purchased 150,000 pounds of raw materials at a cost of $9.20 per pound. All of this material was used in production. b. Direct-laborers worked 62,000 hours at a rate of $17.00 per hour. c. Total variable manufacturing overhead for the month was $390,600. d.…
Hansaben
Subject: Cost AccountingPlease answer the given questions. Thank you!
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 40,000 units per month is as follows: $18.00 $6.80 $2.40 $11.60 $1.90 $5.10 Direct materials. Direct labor. Variable manufacturing overhead.. Fixed manufacturing overhead. Variable selling & administrative expense. Fixed selling & administrative expense . The normal selling price of the product is $51.10 per unit. An order has beleh received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $41.60 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. There is ample idle (excess) capacity to produce the units required by the overseas customer. By how much would this special order increase…
Gadubhai
Please help me with all answers thanku
Please complete the following question thanks.
Seved Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are: Per unit $34 25 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fired manufactaring overhead 12 $99 Total unit cost An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is the mexinum price Olive Carp. should pay the outside supplier? Mtcle Ohoice $87 $97 $99
Any manufacturing company has costs which include fixed costs such as plant overhead, product design, setup, and promotion; and variable costs that depend on the number of items produced. The revenue is the amount of money received from the sale of its product. The company breaks even if the revenue is equal to the cost. A company manufactures dog leashes that sell for $18.13, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $22,920 and the variable costs (materials, shipping, etc.) are $9.78 per leash. How many leashes must be produced and sold each month for the company to break even? leashes. Round to the nearest leash.
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