Question
Fixed manufacturing overhead = $1680000 for dpt 1 and $630000 for dpt 2 . Planned activity is 11,200 for dpt 1 and 9,500 for dpt
Fixed manufacturing overhead = $1680000 for dpt 1 and $630000 for dpt 2 . Planned activity is 11,200 for dpt 1
and 9,500 for dpt 2. cost plus a markup of 40%.
variable costs by department related to the new component: dpt 1 Direct materials $6.75 per component Direct labour $28.00 per hour and 0.8 hours per component Variable overhead $35.00 per machine hour and 0.25 machine hours per component
Dpt 2: Direct materials $3.75 per component Direct labour $32.00 per hour and 1.1 direct labour hours Variable overhead $22.00 per direct labour hour.
How can I determine the price per component if the company allocates fixed manufacturing costs using 19,000 direct labour hours on a plant-wide basis?
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