A manufacturer of potting soil has the following financial data: Pounds produced and sold 24,700 Sales $191,600 Less: Variable manufacturing costs 117,800 Fixed manufacturing costs 10,900 Variable selling and administrative costs 28,200 Fixed selling and administrative costs 14,000 Net operating income $20,700
What is the company's degree of operating leverage?
2. Jones Manufacturing Company makes two products. The company's budget includes $461,280 of overhead. In the past, the company allocated overhead based on estimated total direct labor hours of 19,220. Jones recently implemented an activity-based costing system and had determined that overhead can be broken into three overhead pools: processed purchase orders, machine setups, and good shipped. The following is a summary of company information: Estimated Cost Estimated Activities Orders processed $79,350 5,290 orders Machine setups 14,300 550 machine hours Shipping 31,535 59,500 shipments $125,185 Calculate the company's overhead rates using the activity-based costing pools. (Round shipping cost per shipment to 2 decimal places, e.g. 1.64.) Orders $ per order processed Setups $ per machine hour Shipping $ per shipment