Answer:
$604,800
Explanation:
Applied manufacturing overhead is the manufacturing overhead that has been applied to production in a period.
it is calculated with the formula "budgeted overhead rate * actual labor hr"
Budgeted manufacturing overhead = $562,800
Budgeted Direct labor hours = 20,100
Budgeted Overhead rate = 562800/20100 =$28/hr
Actual manufacturing overhead = $543,705
Actual direct labor hours = 21600
Amount of manufacturing overhead applied = predetermined overhead rate * actual hr =28*21600
=$604,800
Answer:
1. 73 %
2. 27 %
3. $60,000
4. Ways to increase projected operating income without increasing total sales revenue :
- Reduce the variable costs per unit
- Reduce fixed overheads
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
Where,
Contribution = Sales - Variable Costs
= $88,000 - $23,760
= $64,240
Then,
Contribution Margin Ratio = $64,240/ $88,000 × 100
= 73 %
Variable Cost Ratio = Variable Cost / Sales × 100
= $23,760 / $88,000 × 100
= 27 %
Break-even sales revenue = Fixed Costs ÷ Contribution Margin Ratio
= $43,800 ÷ 0.73
= $60,000
<u>Ways to increase projected operating income without increasing total sales revenue :</u>
- Reduce the variable costs per unit
- Reduce fixed overheads
Answer
The answer and procedures of the exercise are attached in the images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.
