Reference no: EM132254982

Questions -

Q1) During FY 2019, Dorchester Company plans to sell Widgets for $11 a unit. Current variable costs are $7 a unit and fixed costs are expected to total of $148,000. Use this information to determine the number of units of Widgets for Dorchester to breakeven.

Q2) During FY 2019, Dorchester Company plans to sell Widgets for $11 a unit. Current variable costs are $6 a unit and fixed costs are expected to total of $147,000. Use this information to determine the dollar value of sales for Dorchester to breakeven.

Q3) Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $335,000 and direct labor hours of 9,200. During the month of February 2019, actual direct labor hours of 9,100 were incurred. Use this information to determine the amount of factory overhead that was applied in February.

Q4) During March 2019, Annapolis Corporation recorded $44,000 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $43,900 would be incurred, and 5,500 direct labor hours would be worked. During March, 5,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.