4a I got 15.20 eneral formula for their behavior: $60,000 +$14 per direct labor

Question

4a I got 15.20 eneral formula for their behavior: $60,000 +$14 per direct labor hour employed. The company expects to direct labor hours during the next accounting 50.0m labor hour should E6 4A. Total Cost Formula Davis Company has analyzed its overhead costs and derived a ND ING labor hours during the next accounting period. What overhead rate per direct labor be applied to jobs worked during the period? Break-Even Chart Set up a break-even chart similar to the one in Exhibit 6-12 with scales from zero to $72,000 (in $12,000 increments) on the vertical axis and from zero to 12 ce units of production (in 2.000-unit increments) on the horizontal axis. Prepare the break-evenhoa Morton Company, assuming total fixed costs of $18,000 and unit selling price and unit variable for the company's one product of $6 and $4, respectively. Label the total revenue line and the to cost line. Indicate the break-even point in units and dollars. proportio 04 E6-5A. COst 6 E6-6A. Net Income Planning Nolden Company has charged a selling price of $20 per unit, incurred v t sales volume is necessary to costs of $14 per unit, and total fixed costs of $90,000. What uni following related amounts of net income before income tax? (a) S18,000: (b) $27,000; or (c) equalt earn the 20% of sales revenue.

Explanation / Answer

Solution:

E6-4A

In the question once equation is given for overhead costs

$60,000 + $14 per direct labor hour

It means $60,000 is Fixed Overhead &

$14 is Variable Overhead Costs per Direct labor hour

Here, total expected labor hours = 50,000

So the total expected variable overhead costs = Expected Labor Hours 50,000 x $14 per labor hour

= $700,000

Hence, the total estimated overhead costs = Fixed Overhead Cost + Variable Overhead Cost

= $60,000 + $700,000

= $760,000

Now, we need to calculate once consolidated overhead rate which will company use to allocate to the jobs worked

Hence, the Overhead Rate per direct labor hour = Total Overhead $760,000 / Expected Direct labor Hours 50,000

= $15.20 per direct labor hour

Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

E6-5A – You need to ask separate question with the chart template

E6-6A – pls ask separate question

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