Fixd manufacturing overhead is assigned to units of

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Porta light manufactures a high-quality LED flashlight for home/office use. data pertaining to the company's 2010 operations are as follows:

  • production for the year 45,000 units
  • sales for the yer (sales price per unit, $8) 48,750 units
  • beginning 2010 inventory 8,750 units

costs to produce one unit (2009 & 2010):

  • direct material $3.60
  • direct labor 1.00
  • variable overhead 0.60
  • fixed overhead 0.40

Selling and administrative costs:

  • variable (per unit sold $0.40
  • fixed (per year) $150,000

fixd manufacturing overhead is assigned to units of production based on a predtermined OH rate using an expected production capacity of 100,000 units per year.what is budgeted annual fixed manufacturing overhead?

Reference no: EM13604032

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