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18. Minerva Company has analyzed its overhead costs and derived a general formula for their behavior: $50,000+ $18 per direct labor hour employed. The company
18. Minerva Company has analyzed its overhead costs and derived a general formula for their behavior: $50,000+ $18 per direct labor hour employed. The company expects to use 40,000 direct labor hours during the next accounting period. What overhead rate per direct labor hour should be applied to jobs worked during the period? A) $1.25 per direct labor hour B) $18.00 per direct labor hour C) $19.25 per direct labor hour D) $770,000 per direct labor hour E) None of the above 19. Neville's Pillow Store sells pillows with a sales price of $25 each. Each pillow costs the company $15 to produce, and the store incurs a total of $100,000 in fixed costs each year. What is the yearly breakeven point in units? A) 4,000 pillows B) 6,667 pillows C) 15,000 pillows D) 10,000 pillows E) None of the above
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