ch 19 B worksheets 16th-2

Total fixed overhead allocated units produced fixed

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Unformatted text preview: ……………………………. Variable overhead cost ……………………………………………………. Fixed overhead cost ……………………………………………………….. (2 hrs × $22.73/hours, 5 hours × $22.73/hour) ………………………… Total manufacturing cost per unit …………………………………………. The cost per unit of PAR, $95.46, is above the target cost of $90. The cost per unit of VEE, $216.15, is also above the target cost be purchased because total manufacturing costs can be reduced by $200,000, which will The machine should of $180. Thus, neither product is earning the desired return. increase profits by $200,000. If QUIN is redesigned, there will be no increase in profits, just a reallocation of fixed costs between the two products. PROBLEM 19.2B THE PARVEE COMPANY (continued) d. The allocation rates of each overhead activity are calculated as follows: Allocation Rate = per Unit of Activity Overhead Cost Total Activ...
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