Explanation: Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $440,000 + ($2.20 per machine-hour × 50,000 machine-hours) = $...
f. Calculate the total job cost for Job A182. g. Calculate the selling price for Job A182 if the company marks up its unit product costs by 20% to determine selling prices. Answer: a. Casting Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machi...
Define the business's revenues, variable costs per unit sold, and its fixed costs Divide contribution margin and monthly sales Subtract operating expenses by production expenses Next Worksheet Print Worksheet 1. A company with a high operating leverage has: High volume of sales Low risk ...
Using the contribution margin per unit formula, subtract the variable cost per unit from the price per unit: USD40 minus USD10 equals USD30. The contribution to profit per the contribution margin is USD30 multiplied by 5,000, or USD150,000. The CM ratio is USD150,000 divided by USD200...
with a slope equal to the price per unit. The total cost line also runs across the graph, intersecting with the first line at the break even point. The slope of the total cost line equals the variable cost per unit. The rise of the first line above the total cost line represents the...
Rashid Case Study From the case study, make two lists, one of fixed costs and one of variable. Total each column for the month assuming that Rashid sells and fits 12 units. (Per Year) Now calculate Rashids’ profit in this month, still assuming he sells 12 units at £275 each. ...
V(converter_key, variable_costs_per(:mwh_electricity)) Fixed costs per unit [Float] Thefixed costsof a plant are costs that do not change with producting, and consists of its 'cost_of_capital', 'depreciation_costs' and 'fixed_operating_and_maintenance_costs_per_year'. ...
Knowing your break-even point helps you make a profit in the long-term & decide if you need to cut expenses or increase your prices.
B) $2.10 per machine-hour C) $3.90 per machine-hour D) $6.00 per machine-hour Answer: D Explanation: Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of...
What Assumptions Does Cost-Volume-Profit (CVP) Analysis Make? The reliability of CVP lies in the assumptions it makes, including that the sales price and the fixed and variable cost per unit are constant. The costs are fixed within a specified production level. All units produced are assumed ...