Question: Help with difficult problem! Thank you for all the help! Main Street Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate
Help with difficult problem! Thank you for all the help!
Main Street Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production departments have the following departmental overhead rates:
| Cutting Department: | $ 12per machine hour |
| Finishing Department: | $ 18per direct labor hour |
Job 242 used the following direct labor hours and machine hours in the two manufacturing departments:
JOB 242
1st number: Cuttingdep ----- 2nd number: Finishing dep----
Direct Labor Hours. . . . . . . . . . . . . . . . . .4 ---10
Machine Hours. . . . . . . . . . . . . . . . . . . . . 10 ---5
| 1. | How much manufacturing overhead should be allocated to Job 242? |
| 2. | Assume that direct labor is paid at a rate of $ 27 per hour and Job 242 used $2,250 of direct materials. What was the total manufacturing cost of Job 242? |
company produces high-quality basketballs. If the fixed cost per basketball is $ 4 when the company produces 9,000basketballs, what is th e fixed cost per basketball when it produces 12,000 basketballs? Assume both volumes are in the same relevant range.
Identify the formula, then compute the new fixed cost per basketball when it produces 12,000 basketballs.
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| New fixed cost |
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Cruiseline offers nightly dinner cruises off the coast of Miami, San Francisco, and Seattle. Dinner cruise tickets sell for $60 per passenger. ExcelExcel Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is$270,000 per month. The company's relevant range extends to 14,000 monthly passengers. Use this information to compute the following:
Requirement 1.
a. What is the contribution margin per passenger?
b. What is the contribution margin ratio?
c. Use the unit contribution margin to project operating income if monthly sales total 11,000 passengers.
d. Use the contribution margin ratio to project operating income if monthly sales revenue totals $595,000.
Requirement 2.
Compute the number of dinner cruise tickets the Cruiseline must sell to break even and the sales dollars needed to break even with the numbers being : Ticket sold per passenger at $50, Variable Cost of dinner: $20, fixed cost being: $210,000 and the companies range being 16,000 montly passengers:
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