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iVinArrow [24]
2 years ago
15

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 600,000 units are expecte

d to be produced taking 0.75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts? Estimated: Department 1 Department 2 Manufacturing overhead costs $ 3,107,500 $ 1,520,000 Direct labor hours 150,000 DLH 250,000 DLH Machine hours 250,000 MH 175,000 MH
Business
1 answer:
anygoal [31]2 years ago
8 0
I tried working it out idk sorry
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shutvik [7]

Answer:

$200,000

Explanation:

The computation of the gross margin is shown below:

As we know that

Gross margin = Sales - cost of goods sold

= (800 units × $500 per unit) - (800 units × $250 per unit)

= $400,000 - $200,000

= $200,000

We simply applied the above formula so that the gross margin could come

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3 years ago
Which term is used when businesses do not maximise output from given inputs ?​
Sergio [31]

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4 0
2 years ago
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
Rama09 [41]

Answer:

$1,524 underapplied

Explanation:

Predetermined overhead rate = Estimated Manufacturing Overhead ÷ Estimated Activity.

                                                  = $560,324 ÷ 22,060

                                                  = $25.40

Applied Overheads = Predetermined overhead rate × Actual Activity

                                 = $25.40 × 22,000

                                = $558,800

<em>Where,</em>

Actual Overheads are  $560,324 (given)

<em>Conditions :</em>

If Actual Overheads > Applied Overheads, we say overheads are under-applied and if Actual Overheads < Applied Overheads, we say that overheads are over-applied.

<em>Therefore ,</em>

In our case, Actual Overheads : $560,324 > Applied Overheads : $558,800. Overheads have been under-applied by $1,524 ($560,324 - $558,800).

8 0
2 years ago
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Answer:

True.

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