porta light manufactures a high-quality LED flashlight for home/office use. data
ID: 2365884 • Letter: P
Question
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.
a. what is budgeted annual fixed manufacturing overhead?
Explanation / Answer
budgeted annual fixed manufacturing overhead = Fixed OH pu * Prod capacity = $0.40*100000 = $40000
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