25-26

QUESTION 25 Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March: Estimated direct labor hours 4,000 hours Estimated overhead costs $8,000 Actual direct labor hours 4,200 hours Actual overhead costs $8, 190 The predetermined overhead rate for the month of March is $2.00 per direct labor hour $.50 per direct labor hour $1.95 per direct labor hour $1.90 per direct labor hour QUESTION 26 Canine Company produces and sells dog collars. The unit selling price is $20, unit variable costs are $12, and total fixed costs are $5,000. How many collars must Canine Company sell to break even? O 417 625 250 O 21