FINANCIAL AND MANAGERIAL ACC VOL 1 W/CON
FINANCIAL AND MANAGERIAL ACC VOL 1 W/CON
9th Edition
ISBN: 9781266314841
Author: Wild
Publisher: MCG/CREATE
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Chapter 23, Problem 12E

1.

To determine

The variable cost per unit.

2.

To determine

The markup percentage.

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A factory operates at a normal capacity of 30,000 direct labor hours. The variable costs are $39,000, and the fixed costs are $21,000 when running at normal capacity. What is the standard manufacturing overhead rate per unit? A) $1.85 B) $2.00 C) $1.50 D) $2.10
What is the company's magnitude of operating leverage ?
compute the predetermined overhead rate under traditional costing.
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