Question
32. Alton Benes paints graduation pictures and then sells them in expensive frames. His average selling price is $299 per painting. Variable costs to deliver
32. Alton Benes paints graduation pictures and then sells them in expensive frames. His average selling price is $299 per painting. Variable costs to deliver a painting are $29 each and Altons fixed costs are $2,000 per month. Alton currently sells 30 paintings per month and he cannot increase the number of paintings sold per month, due to a lack of available time. If Alton wants to generate a profit of $10,000 per month, what would his average selling price per unit need to be?
35. The Romanowksi Manufacturing Company uses a plant wide overhead rate to allocate overhead with direct labor hours as its cost driver. The budgeted direct labor was $750,000 with an hourly rate of $25. The budgeted overhead spending was $3,000,000. During the first month of the year, Romanowski manufactured 100 pieces of product A using 2,500 direct labor hours. What was the amount of overhead allocated to Product A?
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