. Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply...
70.2K
Verified Solution
Link Copied!
Question
Accounting
. Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 57,000 actual direct labor-hours and incurred $346,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 55,000 direct labor-hours during the year and incur $30,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was: A. Overapplied by $16,000 B. Underapplied by $16,000 C. Overapplied by $4,000 D. Underapplied by $4,000 E. None of the above 2. Miller Company's last month contribution format income statement is shown below: Total 450,000 $180,000 $270,000 $9 $220,000 $50,000 per unit Sales Variable Expense Contribution Margin Fixed Expense Net operating Income The president believes that the company could reduce variable costs by $2.00 per unit. However, fixed costs would increase by $42,000 each month. If the president is right, what will be the effect on the company's monthly net operating income or loss? (Choose the closets answer.) A. A decrease of $18,000 B. An increase of $68,000 C. An increase of $18,000 D. A decrease of $68,000 E. An increase of $102,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
