Question: a . ) Fixed MOH cost: 4 2 0 , 0 0 0 Direct LH needed: 1 5 0 , 0 0 0 Variable Direct

a.) Fixed MOH cost: 420,000
Direct LH needed: 150,000
Variable Direct LH: 4.60
420,000150,000+4.60=7.40
$7.40= Predetermined OH rate
b.)
DM=$195,
DL=$288,15(7.40)+195+288=594
Direct LH=15 Job 550cost=$594
C.)
200% mark up is the same as
multiplying by 3.
5943=1732
Selling Price:
$11732
Same calculation but with Machine hour
Variables
a.)420,00075,000+9.20=14.80
b.)5(14.80)+195+288=557
C.)5573=1671
 a.) Fixed MOH cost: 420,000 Direct LH needed: 150,000 Variable Direct

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