Question
ACME Incorporated uses a predetermined overhead rate based on direct labour hours (DLH). Recent total manufacturing overhead costs for different levels of activity are as
ACME Incorporated uses a predetermined overhead rate based on direct labour hours (DLH). Recent total manufacturing overhead costs for different levels of activity are as follows:
| August | September | October | November | December |
| 1,914 DLH | 3,157 DLH | 5,000 DLH | 5,108 DLH | 6,114 DLH |
| $60,162 | $68,364 | $78,351 | $77,691 | $81,582 |
Required:
1. Estimate the variable cost per unit and the total monthly fixed cost. Round to 2 decimals.
2. Estimate the total manufacturing overhead cost for 9,200 DLH in a month.
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Data Analytics For Auditing Using ACL
Authors: Alvin A. Arens
4th Edition
0912503629, 978-0912503622
