Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.
A) 50 MH per unit of Q.
B) .50 MH per unit of Q.
C) .75 MH per unit of Q.
D) 17.5 MH per unit of Q.
E) 30 MH per unit of Q.
E) 30 MH per unit of Q.
Explanation: Total cost per unit of Q:
$60 = DM + DL + OH
$60 = $15 + $30 + X
X = $15 overhead per unit of Q
Plantwide overhead rate: $100,000/200,000 MH = $0.50 per MH
MH per unit of Q: $15/$0.50 = 30 MH per unit of Q
You might also like to view...
The prefatory parts of a report should
A) help readers decide whether and how they need to read the report. B) be prepared and written before the text of the report. C) include an introduction to the report. D) not require any revision once they are written. E) be placed at the end of the report.
What is a SWOT analysis?
A. Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service. B. View of a firm as a series of business processes, each of which adds value to the product or service. C. Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. D. Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
What makes market data available from industry associations attractive?
A) The data obtained is freely available and is inexpensive. B) The data is collected by a specialty market research company. C) The data obtained is of greater quality. D) The data is several years old.
If we are solving a 0-1 integer programming problem, the constraint x1 + x2 = 1 is a ________ constraint
A) multiple-choice B) mutually exclusive C) conditional D) corequisite