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Question - A firm makes and sells a bed cover. The firm sells the bed covers for $150 each and incurs $5250,000 of fixed costs each year. To make each cover requires $45 of direct materials and .75 direct labor hours. The firm pays its highly skilled workers $60 per hour and variable overhead is applied at the rate of $20 per direct labor hour. This past year 25,000 covers were sold and the firm is evaluating what effect a change in sales volume would have on its contribution margin.
Required - What change in contribution margin should the firm experience if it increased sales by 10,000 units and fixed costs rose by $50,000 over last year?
Robb Industries Inc. (RII), developed standard costs for direct material and direct labour. Compute the June direct material efficiency variance
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Which method recognizes that some service departments support the activities in other service departments as well as those in production departments.
How much cash was paid for purchases in October? Lindell Company made direct material purchases of $48,000 and $60,000 in September
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What the equivalent units of production for materials using process costing and weighted average method for March
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Compute the degree of operating leverage (DOL). Explain what the computed amount of leverage means in terms of the effect of changes in sales to profit.
Compute the firm's activity overhead rates. Form activity cost pools where appropriate - assign costs to a 9,200 square foot job that requires 450 contact hours, 340 design hours, and 200 days to complete.
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