chapter_10 - Exercise 10-7 (15 minutes) AutoPutz, Gmbh...

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Unformatted text preview: Exercise 10-7 (15 minutes) AutoPutz, Gmbh Flexible Budget Cost Formula Activity (cars) Overhead Costs (per car) 7,000 8,000 9,000 Variable overhead costs: Cleaning supplies.................. 0.75 5,250 6,000 6,750 Electricity .............................. 0.60 4,200 4,800 5,400 Maintenance.......................... 0.15 1,050 1,200 1,350 Total variable overhead cost..... 1.50 10,500 12,000 13,500 Fixed overhead costs: Operator wages..................... 10,000 10,000 10,000 Depreciation........................... 20,000 20,000 20,000 Rent....................................... 8,000 8,000 8,000 Total fixed overhead cost......... 38,000 38,000 38,000 Total overhead cost.................. 48,500 50,000 51,500 Exercise 10-15 (15 minutes) 1. Predetermined overhead rate: Total overhead from the flexible budget $122,400 at the denominator activity level = =$5.10 per DLH Denominator activity 24,000 DLHs Variable element: $38,400 24,000 DLHs = $1.60 per DLHVariable element: $38,400 24,000 DLHs = $1....
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chapter_10 - Exercise 10-7 (15 minutes) AutoPutz, Gmbh...

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