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attached is the questions 1. The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs $69,300
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1. The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs $69,300 Fixed manufacturing overhead costs $41,580 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's total overhead variance is..... 2. The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs $69,300 Fixed manufacturing overhead costs $41,580 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's controllable overhead variance is..... 3. Cyprus Corp. has excess capacity. Under what situations should the company accept a special order for less than the current selling price? A:When incremental revenues exceed incremental costs B:When additional fixed costs must be incurred to accommodate the order C:When the company thinks it can use the cheaper materials without the customer's knowledge D:Never 4. Cara Industries incurred the following costs for 50,000 units: Variable costs $90,000 Fixed costs 120,000 Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping. If Cara wants to earn $4,000 on the order, what should the unit price be? 5. Tram Manufacturing is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $160 and Tram would sell it for $360. The cost to assemble the product is estimated at $72 per unit and Tram believes the market would support a price of $464 on the assembled unit. What is the correct decision using the sell or process further decision rule? A:Process further, the company will be better off by $104 per unit. B:Process further, the company will be better off by $32 per unit. C:Sell before assembly, the company will be better off by $72 per unit. D:Sell before assembly, the company will be better off by $104 per unitStep by Step Solution
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