3 Reddy Company has the following cost formulas for overhead: Cost Formula Cost Indirect materials Maintenance...

 

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3 Reddy Company has the following cost formulas for overhead: Cost Formula Cost Indirect materials Maintenance Machine setup Utilities Depreciation $2,000 plus $0.40 per machine hour $1,500 plus $0.60 per machine hour S0.30 per machine hour $200 plus $0.10 per machine hour $800 Based on the cost formulas, the total overhead cost at 600 machine hours is expected to be: (a) (b) (c) (d) $4,500 $52,60 $5,340 None of the above. Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead 153,000 110,500 204,000 255,000 Sales were $780,000 for the year, variable selling and administrative expenses were S8,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost. The contribution margin per unit was: (a) (b) (c) (d) $25.70 $27.30 $32.50 None of the above. 3 Reddy Company has the following cost formulas for overhead: Cost Formula Cost Indirect materials Maintenance Machine setup Utilities Depreciation $2,000 plus $0.40 per machine hour $1,500 plus $0.60 per machine hour S0.30 per machine hour $200 plus $0.10 per machine hour $800 Based on the cost formulas, the total overhead cost at 600 machine hours is expected to be: (a) (b) (c) (d) $4,500 $52,60 $5,340 None of the above. Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead 153,000 110,500 204,000 255,000 Sales were $780,000 for the year, variable selling and administrative expenses were S8,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labour is a variable cost. The contribution margin per unit was: (a) (b) (c) (d) $25.70 $27.30 $32.50 None of the above.

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3 Total Overhead Cost is the sum of all indirect cost incurred to manufacture the product Here Total ... View the full answer