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UNO [17]
3 years ago
14

Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 40,000 units

next year and Product L is expected to sell 8,000 units. A unit of either product requires 0.4 direct labor-hours. The company's total manufacturing overhead for the year is expected to be $1,632,000.
Required: 1-a. The company currently applies manufacturing overhead to products using direct labor-hours as the allocation base. If this method is followed, how much overhead cost per unit would be applied to each product?
Product H Product L
Overhead cost per unit
1-b. Compute the total amount of overhead cost that would be applied to each product
Product H Product L Total
Total overhead cost
Business
1 answer:
OLEGan [10]3 years ago
5 0

Answer:

1a. Product H Overhead cost per unit = [$85 * 0.4] = $34.00

Product L Overhead cost per unit = [$85 * 0.4] = $34.00

Predetermined overhead application rate = Estimated total manufacturing overheads / Total direct Labor hours

Predetermined overhead application rate = $1632000 / {[40000 units * 0.4]+[8000 units * 0.4]}

Predetermined overhead application rate = $1632000 / 19200 direct labor hours

Predetermined overhead application rate = $85 per direct labor hour

1b.                                    Product H   Product L

Overhead cost                $816,000    $816,000      

/No.of units                       40000         8000    

Overhead cost per unit  $20.40      $102.00

                                     Product H     Product L       Total

Total Overhead cost  $1,360,000   $272,000  $1,632,000

Note:

Total Overhead cost  = No.of units * Overhead cost per unit

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olasank [31]

Answer:

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Explanation:

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6 0
3 years ago
Which of the following is not a business management perspective that goes beyond the numbers to enable intelligent planning, con
lana [24]
<h2>Lean Production Perspective</h2>

Explanation:

There are 6 Business management perspective. They are:

  1. An ethics perspective
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  3. Enterprise risk management
  4. Corporate social responsibility perspective
  5. A process management perspective
  6. A leadership perspective

Here the Lean production perspective does not come under the business management perspective.

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4 0
3 years ago
Fenton Manufacturing Company at June 30: Cash in bank account $ 6,455 Inventory of postage stamps $ 74 Money market fund balance
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Answer:

$19,462

Explanation:

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3 years ago
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Bond [772]

The following is not a primary component of an internal control system <u>Control environment .</u>

<u />

The primary cause of inner controls is to assist safeguard an corporation and further its objectives. internal controls characteristic to limit risks and shield property, make certain accuracy of facts, sell operational efficiency, and inspire adherence to policies, rules, regulations, and legal guidelines.

Internal controls are techniques designed to help guard an enterprise and limit danger to its objectives. inner controls decrease risks and guard belongings, ensure accuracy of statistics, sell operational performance, and encourage adherence to policies, policies, policies, and laws.

Determining whether a specific internal manage machine is effective is a judgement because of an assessment of whether the five additives - manage surroundings, risk assessment, manage sports, information and communique, and tracking - are present and functioning.

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5 0
1 year ago
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4vir4ik [10]
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8 0
3 years ago
Read 2 more answers
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