Slippers and Crystal Balls.  FGI estimates they can sell 30,000 Glass Slippers and 20,000 Crystal Balls.  Both products must be processed by the glass sanding machine, which has a capacity of 25,000 machine hours. Fairy Godmother Inc Production Information Per Unit Information Glass Slippers Crystal Balls Selling Price 25 15 Direct Materials 8 5 Direct Labor 8 4 Variable Overhead 2 2 Variable Selling 1 1 Machine Hours 4 .75 What is the contribution margin per unit for Crystal Balls? Group of answer choices 1.50 3 6 4

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.