Chapter 3, Problem 3.7E

Swift Manufacturing has a predetermined overhead rate of $5 per machine hour. Last year, the company incurred $125,500 in actual manufacturing overhead costs, and the account was $6,000 over- applied. How many machine hours were used during the year? a. 22,700 machine hours b. 26,500 machine hours c. 27,100 machine hours d. 26,300 machine hours

Subject=Accounting solution

A printing company has variable expenses equal to 30% of sales and monthly fixed expenses of $180,000. The monthly target operating income is $90,000. What is the operating leverage factor at the target level of operating income?