A company has computed an indirect allocation rate of 50% based on direct wages for a quality
Fantastic news! We've Found the answer you've been seeking!
Question:
A company has computed an indirect allocation rate of 50% based on direct wages for a quality control department, and an 80% allocation rate (based also on direct wages) to cover indirect costs in the sales and administration department. Both indirect departments have 30% variable costs. Direct wages is considered to be a variable cost, and the sales price is NOK 30 000 per unit.
If the indirect allocation rates have been computed based on a budgeted sales level of 1 000 units, what is the company's break-even level of sales in number of units?
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date: