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3 years ago

Activity Levels Used to Compute Overhead Rates

Business

1 answer:

son4ous [18]3 years ago

6 0

Answer:

Estimated manufacturing overhead rate= $4.8 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead= $12,000

Estimated direct labor hours= 100 jobs* 25 hours= 2,500 hours

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 12,000/2,500= $4.8 per direct labor hour

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Therefore the correct option in this case is (b).

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Answer: true

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3 years ago

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3 years ago

Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popul

Xelga [282]

If Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.

First step is to determine the selling price

Selling price = $1,000,000 / 100,000 units

Selling price = $10

Second step is to determine the Variable cost per unit

Variable cost per unit =$700,000 / 100,000 units

Variable cost per unit = $7

Third step is to calculate the Contribution margin per unit using this formula

Contribution margin per unit = Selling price - Variable cost

Let plug in the formula

Contribution margin per unit = $10 - $7

Contribution margin per unit = $3

Fourth step how many units will Gay and Joy need to sell to breakeven

Using this formula

Break even= Fixed cost / Contribution per unit

Break even = $ 210,000 / $3

Break even =70,000 units

Inconclusion if Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating, and it is very popular. How many units will Gay and Joy need to sell to breakeven is: 70,000 units.

Learn more here:

brainly.com/question/16674064

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3 years ago