The total factory overhead for Rowland Company is budgeted for the year at $652,000 and divided into two departments: Fabricatio
1 answer:
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Solution:
As we need to measure costs due to variable expense, the fixed overhead is not taken into account.
Therefore, expense can be measured as follows per unit:
Cost per unit = Direct labor per unit + Direct material per unit + variable overhead per unit
Cost per unit =
= 11 +0.6 = $11.6
Answer:
$9,870
Explanation:
The computation of the new balance in the inventory account after considering the new purchases is given below;
New balance is
= Beginning balance + value of the purchase.
where,
Value of the purchase = purchase cost + freight cost- purchase discount
= $6,000 + $170 - $300
= $5,870
So,
New balance is
= $4,000 + $5,870
= $9,870
