Question
Unkar Plutt Inc., is a recycling shop that reworks junk into artwork. Manufacturing overhead (both variable and fixed) is allocated to products on the basis
Unkar Plutt Inc., is a recycling shop that reworks junk into artwork. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2016, budgeted fixed manufacturing overhead cost was $17,000,000. Budgeted variable manufacturing overhead was $10 per machine-hour. The denominator level was 1,000,000 machine-hours. Required: 1. Prepare a graph for variable manufacturing overhead and fixed manufacturing overhead. The graph should display how Unkar Plutt Inc., variable and fixed manufacturing overhead costs will be depicted for the purposes of: (a) planning and control (b) inventory costing.
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