Question
5. A company has $600,000 of Fixed Costs. It produces only one product which it sells for $50 per unit. Variable costs per unit are
5. A company has $600,000 of Fixed Costs. It produces only one product which it sells for $50 per unit. Variable costs per unit are $20. At a level of production of 120,000 units, Fixed costs per unit would be $5. The company's breakeven point would be: a. 12,000 units b. 18,000 units c. 20,000 units d. 30,000 units e. None of the above. The answer is 6. A company had Estimated Machine Hours 150,000 hours Actual Machine Hours 155,000 hours ACTUAL Manufacturing Overhead of $1,325,000; Predetermined Overhead Rate of $9 per Machine Hour This would result in which of the following a. Manufacturing Overhead Underapplied $70,000 b. Manufacturing Overhead Overapplied $70,000 c. Manufacturing Overhead Underapplied $25,000 d. Manufacturing Overhead Overapplied e. None of the above. The answer is $25,000 7. Which of the following would most likely NOT be included as manufacturing overhead in a furniture Factory? a. The cost of the glue in a chair. b. The amount paid to the individual who glues the chair. c. The electricity used in cutting materials. d. All would be included in manufacturing overhead. e. None of the above 8. A company has $600,000 of Fixed Costs. It produces only one product which it sells for $50 per unit. Variable costs per unit are $20. At a level of production of 120,000 units, Fixed costs per unit would be $5. The company's breakeven point would be: a. 12,000 units b. 18,000 units c. 20,000 units d. 30,000 units e. None of the above. The answer is
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