Answer:
$6.7 per direct labor hour
Explanation:
Given:
Direct labor-hours = 20,000
Fixed manufacturing overhead cost = $94,000
variable manufacturing overhead = $2.00 per direct labor-hour
Actual manufacturing overhead cost for the year = $123,900
Actual total direct labor = 21,000 hours
Now,
Total Estimated Manufacturing Overhead
= 94000 + ( 2 × 20000 )
= $134,000
And,
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = $6.7 per direct labor hour
Answer:
Net operating income= 341,000
Explanation:
We need to use the following structure:
Gross profit= sales - cost of goods sold
Net operating income= Gross profit - other expenses (variable and fixed)
<u>Under the absorption costing method, the cost of goods sold incorporates the fixed overhead.</u>
Sales= 980,000
COGS= (116,000 + 266,000)= (382,000)
Gross profit= 598,000
Fixed selling and administrative costs= (116,000)
Variable selling and administrative costs= (141,000)
Net operating income= 341,000
Answer:
The total cost of Job 903 is $5,073.20
Explanation:
The computation of the total cost is shown below:
= Direct material used + Direct labor cost + overhead cost (Predetermined manufacturing overhead rate per direct labor hour × Direct labor hours used in Job 903)
= $3,200 + $1,092 + ($18.60 × 42 labor hours)
= $3,200 + $1,092 + $781.20
= $5,073.20
Answer:
B. I and II only
Explanation:
I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services
