Question
JenCo has fixed production overhead costs of $135,000. In a normal year, the company would produce 100,000 units of product, which would result in an
JenCo has fixed production overhead costs of $135,000. In a normal year, the company would produce 100,000 units of product, which would result in an fixed overhead allocation of $1.35 per unit. Please make sure your final answer(s) are accurate to the nearest whole number.
a) If the company produces 49,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?
Total fixed overhead = $
b) If the company produces 107,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?Total fixed overhead = $
c) If the company produces 178,000 units in a year, how much total fixed overhead should be allocated to the inventory produced?Total fixed overhead = $
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Intermediate Accounting
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