Question
Bridgeton Industries dropped the muffler-exhaust systems product line in the 1988 year-end. From 1988 to 1989 the both the total overhead costs and total direct
Bridgeton Industries dropped the muffler-exhaust systems product line in the 1988 year-end. From 1988 to 1989 the both the total overhead costs and total direct labor costs declined, which caused the actual overhead per direct labor to be what in 1989? (percentage or ratio/level)
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Exhibit 2: Overhead Account Number
1000 | Wages and benefits for nonskilled hourly personnel such as janitors and truck drivers. |
1500 | All plant salaried personnel expense, including benefits, except industrial engineers included in account number 11000 below. |
2000 | Production supplies such as gloves, safety goggles, and packing material. |
3000 | Small wearing tools such as grinding wheels, hammers, and screwdrivers. |
4000 | All purchased utilities, including coal and compressed gas. |
5000 | Wages for nonproduction employees with specialized skill classifications used for plant maintenance and rearrangement. The benefits associated with these wages are in class 14000 below. |
8000 | Depreciation on a straight-line basis and property taxes. |
9000 | Various relatively constant personnel-related expenses, including items such as training, travel, and union representation. |
11000 | Project expense for one-time setup and some rearrangement of new equipment and machinery. |
12000 | Benefits and overtime premium for production hourly workers, including COLA, state unemployment, and pension. Wages are in direct labor. |
14000 | Benefits for skilled hourly workers similar to those for production workers. Wages are in account 5000 above. |
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