Chapter 3, Problem 2BCRQ

White Co. incurs a cost of $15 per pound to produce Product X, which it sells for $26 per pound. The company can further process Product X to produce Product Y. Product Y would sell for $30 per pound and would require an additional cost of $13 per pound to be produced. The differential cost of producing Product Y is: a. $15 per pound b. $26 per pound c. $13 per pound d. $10 per pound

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Subject general accounting

Compute the variable cost per unit

The Collins Company forecasts that total overhead for the current year will be $18,000,000 and that total machine hours will be 300,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 200,000 hours. If the Collins Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?