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Q1) a) Down Under manufactures boomerangs and incurs the following per unit costs: Direct material $0.60 Direct labor 0.12 Variable production overhead 0.06 Fixed production
Q1) a) Down Under manufactures boomerangs and incurs the following per unit costs: Direct material $0.60 Direct labor 0.12 Variable production overhead 0.06 Fixed production overhead 0.02 Total variable product cost per unit is? b) Bramble Company incurs the following costs during May 2010 when 25,000 umbrellas were produced: Direct material cost Direct labor cost (200 hours @ $10 per DLH) Selling and administrative costs $32,500 20,000 15,000 The predetermined overhead rate was based on direct labor hours (DLHS). Estimated total overhead cost for 2010 was $120,000 and estimated DLHs were 3,000. Bramble's pre determined overhead rate per DLJ for the period is? c) At Quebec Corp., selling price is $200 per unit. Fixed costs are $2,000,000 and expected contribution margin is 40%. If the company breaks even at this point, what is the break-even point in units? d) West Corp.'s December 31, 2009 inventory contains 10,000 units. Forecasted sales for 2010 are 200,000 units and desired 2010 year-end inventory is 15% of beginning inventory. During 2010, West should produce
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