BUS 5110 Managerial Accounting Written Assignment Unit 4.docx

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BUS 5110: Managerial Accounting-Written Assignment Unit4Written Assignment Unit 4Managerial AccountingBUS 5110University of the PeopleApril 2021
Our way to deal with this contextual investigation is doing a "make or purchasedifferential examination". To do that precisely, we need to layout the required expense orincome information.To begin with, the creation of 50,000 units is yearly based, in this manner all informationgiven should be annualized to get a right calculation. With that as a main priority, theaccompanying variable month to month costs, yearly would be:Direct Materials = $75,000 * 12 = $900,000Direct Labor = $100,000 * 12 = $1,200,000Total = $175,000 * 12 = $2,100,000Variable Factory Overhead = $7.50 per unit, in same vein, complete variablemanufacturing plant overhead = $7.50 * 50,000 = $375,000 for the year.Fixed industrial facility overhead = 150% of direct work cost per unit.Thusly, we need to address for direct work cost per unit.Total direct work cost for the year = $1,200,000The direct work cost per unit will be 1,200,000: 50,000 = $24Fixed plant overhead (lease, rent, compensation) per unit = 150% of $24 = $36Total Annual fixed plant overhead = $36 * 50,000 = $1,800,000

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Term
Fall
Professor
N/A
Tags
Income Statement, Revenue, Managerial Accounting Written Assignment Unit

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