Machine time is the current constraint at a company. Three p…
Machine time is the current constraint at a company. Three products use this constrained resource. Data concerning those products appear below: AB CD EF Selling price per unit $ 165.88 $ 313.11 $ 494.52 Variable cost per unit 118.30 239.61 381.42 Minutes on the constraint 2.60 4.90 7.80 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized.
Read DetailsA company is using a predetermined overhead rate that was ba…
A company is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to:
Read DetailsA company’s cost formula for its overhead cost is $2,300 per…
A company’s cost formula for its overhead cost is $2,300 per month plus $6 per unit. For the month of July, the company planned for activity of 861 units, but the actual level of activity was 856 units. The actual overhead cost for the month was $7,790. The activity variance for supplies cost in July would be closest to:
Read DetailsA company, which applies manufacturing overhead on the basis…
A company, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $ 157,050 Estimated machine-hours 4,500 Actual manufacturing overhead $ 156,000 Actual machine-hours 4,580 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.The applied manufacturing overhead for the year is closest to:
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