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chapter_10

# 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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