Conversion costs during the month totalled: $ 60,000
<h3>What is conversion cost?</h3>
Conversion cost is the cost incurred by any manufacturing entity in the process of converting its raw material into finished goods capable of being sold.
The conversion cost is computed as:
Conversion Costs = Direct Labor Costs + Manufacturing Overheads
Given that:
Direct Labor Costs = $ 36,200
Manufacturing Overheads = $ 23,800
Therefore,
Conversion Costs = $ 36,200 + $ 23,800
Conversion Costs = $ 60,000
Hence, Conversion costs during the month totalled $ 60,000
Learn more about conversion costs here : brainly.com/question/5584175
Answer:
A. 0.21
B. $378
Explanation:
1. Calculation for the company's contribution margin (CM) ratio
Fist step is to calculate the CM
CM = 308,000 - $243,320
CM= 67,320
Now let calculate the CM Ratio
Using this formula
CM / Sales = CM Ratio
Let plug in the formula
CM Ratio = 64,680 / 308,000
CM Ratio = 0.21
Therefore the company's contribution margin (CM) ratio is 0.21
2. Calculation for the estimated change in the company's net operating income if it can increase total sales by $1,800
Estimated change in the company's net operating income=CM Ratio x 1,800
Estimated change in the company's net operating income= 0.21*$1,800
Estimated change in the company's net operating income=$378
Therefore the estimated change in the company's net operating income if it can increase total sales by $1,800 is $378
Answer:
Controllable Variance = $6,000 Unfavorable
Volume Variance = $4000 Unfavorable
Factory overhead cost variance = $10,000 Unfavorable
Explanation:
Controllable Variance = (Budgeted Factory Variable Overhead - Actual Factory Variable Overhead)
= ($234,000 - $240,000)
= $6,000 Unfavorable
Budgeted Factory Variable Overhead = ($394,000 - $160,000)
= $234,000
Volume Variance = (Standard Hours for Actual unit Produced - Standard Hour for normal Capacity) Fixed Factory Overhead)
=(19,500-20,000) × $8
= $4,000 Unfavorable
Controllable Variance = $6,000 Unfavorable
Volume Variance $4000 Unfavorable
Factory overhead cost variance = Controllable Variance + Volume Variance
= $6,000 + $4,000
= $10,000 Unfavorable