Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During the month, the following transactions occurred in manufacturing 10,000 cartons of highlighters: 1) Purchased 10,000 boxes of tips for $148,000, ($14.80 per 500 tips),
During the month, the following transactions occurred in manufacturing 10,000 cartons of highlighters: 1) Purchased 10,000 boxes of tips for $148,000, ($14.80 per 500 tips), Purchased 10,200 boxes of translucent barrels and caps for $453,900 ( $44.50 per 500 barrels and caps) and purchased 9,900 containers of fluorescent ink for $328,185 ( $33.15 per five litre container). 2) All materials purchased during the period were used to make markers during the period. 3) A total of 2,300 direct labour hours were worked at a total labour cost of $20, 240 ( an averag hourly rate of $8.80) 4) The variable manufacturing overhead incurred was $34,600 and the fixed overhead incurred was $84,000 5) The manufacturing overhead rate of $48.00 is based on a normal capacity of 2,600 direct lat hours. The total budget at this capacity is $83,980 fixed and $40,820 variable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started