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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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Answer:

.a. import sweaters from Britain and export machinery to Britain.

Explanation:

A lower opportunity cost of manufacturing a particular goods means that a country uses fewer inputs in production compared to other nations.  The country can produce more quantities of the product using similar factors of production. A lower opportunity cost in manufacturing will make a country's output cheaper compared to when that product is manufactured in other nations.

Varying production costs form the basis of international trade. A County imports commodities that are produced cheaply elsewhere and exports the goods it can manufacture at a lower cost. The united states can produce machinery at a lower cost than Britain.  Britain will be prudent to import machinery from the united states rather than produce.  Britain produces sweaters using fewer inputs that the US. The US will find importing  sweaters from Britain more economical compared to manufacturing.  

3 0
3 years ago
Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a
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Answer:

Basic = $140.82

Dominator = $392.216

Explanation:

For Basic:

Total cost for Basic:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $ 11,000 + $72,000 + $128,232

= $211,232

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $211,232 ÷ 1,500

= $140.82

For Dominator:

Total cost for Dominator:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $3,500 + $34,000 + $60,554

= $98,054

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $98,054 ÷ 250

= $392.216

Workings:

Manufacturing overhead (Basic):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($72,000 ÷ $106,000)

= $128,232

Manufacturing overhead (Dominator):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($34,000 ÷ $106,000)

= $60,554

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Answer:

p

Explanation:

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3 years ago
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Sophie [7]

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

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<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

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Answer:

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