Question: Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead

Audio Zone Co. needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Month Total Overhead Machine Hours Jan $ 6,288 1.980 Feb. 6,460 2,090 Mar. 5.987 1,745 Apr 5,559 1,560 May 6,032 1,865 June 6,341 2012 Using the high low method, unit variable overhead cost is cakulated to be 31.70 $1.60 $1.40 $1.80 $1.50 Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 480 100 Variable costs 312 65 Unit contribution margin $ 168 35 Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000 What is Staley Co.'s degree of operating leverage (DOL) at this sales volume tie, at 600 units)? (Round your answer to three decimal places.) 4.405. 5.630 5.118 5.000 4.846
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