A call center has a total of 12 telephone lines coming into its customer service department, which is staffed by 5 customer serv
1 answer:
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Answer: $425,000
Explanation: The total overhead cost can be computed suing following formula :-
total overhead cost = fixed overhead cost + variable overhead cost
where,
fixed overhead cost = $90,000
=$335,000
so,putting the values into equation we get :-
total overhead cost = $90,000 + $335,000
= $425,000
Answer:
Vaughn should produce Plain as it makes greater profit.
Explanation:
Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both.
Plain has a unit contribution margin of $86 and takes two machine hours to make and Fancy has a unit contribution margin of $111 and takes three machine hours to make.
There are 2400 machine hours available to manufacture a product.
Profit per machine hour for Plain
=
= $43
Profit per machine hour for Fancy
=
= $37
The difference in profit
= $43 - $37
= $6
Plain makes $6 more profit per machine hour than Fancy.