Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturer estimates that it will incur variable indirect costs for the month of October of $70,000 and $30,000 of fixed costs. The company uses

image text in transcribed

image text in transcribed

A manufacturer estimates that it will incur variable indirect costs for the month of October of $70,000 and $30,000 of fixed costs. The company uses direct labor hours to calculate the predetermined overhead rate and predicted that 3,000 direct labor hours would be used in October. Actual direct labor hours amounted to 3,200. Required: A) What is the variable predetermined indirect rate for October? B) What is the fixed predetermined indirect cost rate for October? C) What is the total allocation rate per direct labor hour for October? Arthur's Plumbing reported the following: RevenuesVariablemanufacturingcostsVariablenonmanufacturingcostsFixedmanufacturingcostsFixednonmanufacturingcosts$4,500$900$810$630$545 Required: a. Compute contribution margin. b. Compute contribution margin percentage. c. Compute gross margin. d. Compute gross margin percentage. e. Compute operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Corporate Surveillance Systems Research Methods For Greater Transparency

Authors: Isabel Wagner

1st Edition

1108837662, 978-1108837668

More Books

Students also viewed these Accounting questions

Question

Are there any disadvantages to this tactic?

Answered: 1 week ago

Question

Who is the assigned manager for each tactic?

Answered: 1 week ago