Overhead application rate of manufacturer

Assignment Help Accounting Basics

Reference no: EM13146512

tennis racquet manufacturer makes several types of racquets. At the start of the year, the manufacturer estimates overhead to equal $4 million. The overhead is applied to tennis racquets based on direct labor dollars, which are estimated to be $2 million in the coming year. Direct material costs are estimated to be $3 million.

Required:

1. What is the overhead application rate of the manufacturer?

2. What is the product cost of a batch of 1,000 racquets that use 200 direct labor hours at $10 perhour and $5,000 of direct materials.

3. What is the product cost per unit (i.e. to make one racquet)?

Reference no: EM13146512

Questions Cloud

What is the concentration of each ion : a 250ml solution of NaOH has 20g of solute. what is the concentration in moles per litre? what is the concentration of each ion?

Effect of outlier or extreme value confidence interval : Recalculate the confidence interval. Using the results, describe the effect of an outlier or extreme value on the confidence interval.

What is the net present value of purchasing the land : What is the net present value of purchasing the land and growing the willow after 12 years? If the price for the willow drops to $25 per ton in year 11, should the farmer harvest the willow in year 12? (and calculate that NPV) Assume a 6% discou..

5th amendment : Any of Congress's enumerated powers under Article I, Section 8 1st Amendment 4th Amendment 5th amendment

Overhead application rate of manufacturer : What is the overhead application rate of the manufacturer? What is the product cost of a batch of 1,000 racquets that use 200 direct labor hours at $10 perhour and $5,000 of direct materials.

Use of calendar year for tax purposes : All parties use the calendar year for tax purposes. On June 30, 2011, Robin repays the loans of $40,000 together with the specified interest of $4,000. How much of the interest can Robin Corporation deduct in 2010?

What is the treatment of choice : A 41 year old homeless man with a history of alcohol abuse was brought to the ER by his friend. The patient had a productive cough which produced a-foul-smelling, purulent sputum. He had a fever and poor dental hygiene. Chest x-ray showed infiltra..

Calculate the yield if interest is compounded monthly : If the interest is paid more often, say monthly, will the yield be higher or lower or unchanged? Calculate the yield if interest is compounded monthly.

How much heat is released : How much heat is released when 25mL of 0.10 M NaOH reacts with 50 mL of 0.10 M HCl?

User Account

All Pages