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g100num [7]
3 years ago
6

The management of Featheringham Corporation would like to investigate the possibility of basing its predetermined overhead rate

on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 67,400 machine-hours. Capacity is 80,400 machine-hours and the actual level of activity for the year is assumed to be 64,400 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $2,836,512 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Z77W which required 450 machine-hours. If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to:
Business
1 answer:
Wewaii [24]3 years ago
3 0

Answer:

the predetermined overhead rate is $35.28

Explanation:

The computation of the predetermined overhead rate is given below:

The Predetermined overhead rate is

= Estimated overhead ÷ Capacity hours

= $2,836,512 ÷ 80,400 machine hours

= $35.28

hence, the predetermined overhead rate is $35.28

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if we sell pizzas for $11.99 and our business' variable costs are 60% of the selling price, and we have fixed costs of $21,000 e
Daniel [21]

Answer:

<u>4375</u> pizzas have to sell to breakeven.

Explanation:

Given:

If we sell pizzas for $11.99 and our business' variable costs are 60% of the selling price, and we have fixed costs of $21,000 each month.

Now, to find pizzas to sell to breakeven.

Fixed costs = $21,000.

Sale price = $11.99.

Variable costs:

60% of the selling price.

60\%\ of\ 11.99\\=\frac{60}{100}\times 11.99 =0.6\times 11.99\\=\$7.19.

Now, to get the number of pizzas to sell to breakeven we put formula:

<u><em>Breakeven = Fixed Costs ÷ (Sale price – Variable costs ) </em></u>

Breakeven=21,000\div (11.99-7.19)

Breakeven=21,000\div 4.8

Breakeven=4375.

Therefore, 4375 pizzas have to sell to breakeven.

3 0
3 years ago
Handy Home sells windows and doors in the ratio of 8:2 (windows:doors).
matrenka [14]

Answer:

A. selling price per composite unit,

8 0
3 years ago
7. Social and emotional development can include using A. television viewing. B. flashcards. C. tablet apps. D. games.
Romashka-Z-Leto [24]
A. television viewing
7 0
3 years ago
Read 2 more answers
Angie’s Bake Shop makes birthday chocolate chip cookies that cost $3 each. Angie expects that 12% of the cookies will crack and
mestny [16]

Answer:

<em>Price per cookie $5.5</em>

Explanation:

The cost per cookies inclusive of wastage

$3× 100/(100-12)

=$3.409

<em>Total cost  for  150 units</em>

= 150× 43.409

= $511.36

<em>Total sales value for 150 units</em>

=  $511.36 + (60% × 511.36)

= $818.1818

Selling price per unit

<em>=</em><em>$818.18/150 units</em>

<em>= $5.5</em>

4 0
3 years ago
Otool Inc. is considering using stocks of an old raw material in a special project. The special project would require all 150 ki
frez [133]

Answer:

The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.

Explanation:

We do not use the original cost $2,236 because it is sunk cost.

We do not use market value because Otool Inc. does not either incur this cost nor sacrifice any benefit from not buying at market price.

The relevant cost of these raw material should be the benefit sacrificing from not selling the raw material, instead using it in the project; calculated as:

Selling price x Amount sold - Cost of delivery = 7.1 x 150 - 86 = $979.

Thus, the answer is $979.

5 0
3 years ago
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