In order to meet anticipated demand for the upcoming month, Sigma Company plans to rent three machines, each costing $50,000 per month, and hire four indirect workers, each costing $4,810 per month. The total cost of the three machines and four indirect workers comprises the total overhead cost at Sigma Company. 

Required 

a. Given the production plan, what is the deluxe product's planned total contribution margin? 

b. If Sigma Company computes a plantwide rate to allocate total overhead cost to the three products by dividing the sum of indirect labor cost and machine cost by planned total direct labor hours, what is the total overhead cost that will be allocated to the deluxe product, and what will be its resulting gross margin? 

c. If Sigma Company uses TDABC to allocate the indirect labor cost and the machine cost to the three products, what will be the total overhead cost allocated to the deluxe product, and what will be its resulting gross margin?

Answer rating: 100% (QA)

a Given the production plan what is the del uxe product s planned total contribution margin ANS WER The del uxe product s planned total contribution m... View the full answer