Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

Question

Sterling Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 14,300 hours, and the total estimated manufacturing overhead was $343,200. At the end of the year, actual direct labor hours were 14,000 hours, and the actual manufacturing overhead was $338,500. What is the overhead at the end of the year?

Answer 1

Question

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.

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Sterling Corporation uses direct labor hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor hours were 14,300 hours, and the total estimated manufacturing overhead was $343,200. At the end of the year, actual direct labor hours were 14,000 hours, and the actual manufacturing overhead was $338,500. What is the overhead at the end of the year?

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General Accounting

Answer 2

Question

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.

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Answer 3

Question

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.

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Answer 4

Question

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.

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Answer 5

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

3.

To determine

State the additional factors that company should be considered in special order.

4.

To determine

Calculate the opportunity cost for accepting special order.

Answer 6

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

Answer 7

Chapter 11, Problem 22E

1.

To determine

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

Answer 8

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

Answer 9

2.

To determine

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

Answer 10

3.

To determine

State the additional factors that company should be considered in special order.

Answer 11

3.

To determine

State the additional factors that company should be considered in special order.

Answer 12

4.

To determine

Calculate the opportunity cost for accepting special order.

Answer 13

4.

To determine

Calculate the opportunity cost for accepting special order.

Answer 14

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Answer 15

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Answer 25

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Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

Explain the reason why the unit cost is declined from $11 to $10 when the production level rises from 40,000 to 60,000 units.

State the impact on short-term operating income if the order is accepted at the price recommended by the sales manager.

State the additional factors that company should be considered in special order.

Calculate the opportunity cost for accepting special order.

Chapter 11 Solutions