Answer:
are there any answers to pick from? if so its b
Answer:
The rate is used to apply overhead at the end of the accounting period.
Explanation:
The formula to compute the predetermined overhead rate is shown below:
= Estimated manufacturing overhead cost ÷ estimated activity
So for this the estimates should be used, the rate should be prepared after the starting. IF there is a single allocation basis so it would not suceed to allocate for all the production departments also this rate would helpful for the managers with respect to keep up to date estimates
Therefore the last option is correct
Answer:
The company's CM ratio: 0.5
Its break-even point in units: 14,300 units and in dollars: $286,000
Explanation:
Variable expense per unit = Variable expenses/ number of units = $128,000/12,800 = $10
The contribution margin ratio is calculated by using following formula:
Contribution margin ratio = (Sales - Total Variable cost)/Sales = ($256,000 - $128,000)/$256,000 = 0.5
The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:
Break-even point in units = Fixed expense/(Selling price per unit-Variable expense per unit) = $143,000/($20 - $10) = 14,300 units
Break-even point in dollars = 14,300 units x Selling price per unit = 14,300 x $20 = $286,000
Answer:
I can't see it so ask the same question but with a picture
It appears as though D is the correct answer
(Though (as a sub note) diversification of portfolios is a common method to reduce risk)