(TCO 4) Johnson Company produces and sells a single product whose selling price is $80.00 per unit and whose variable expense is $50.00 per unit. The company’s fixed expense is $270,000 per month. (a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points) (b) How many units […]
TCO 2) Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actual labor hours are 225,000. Actual machine hours are 90,000. If Lisa Inc. allocates overhead based on direct labor hours, what is […]
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(TCO 4) Stevens Company produces and sells a single product whose selling price is $60.00 per unit and whose variable expense is $40.00 per unit. The company’s fixed expense is $880,000 per month. (a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points) (b) How many units […]
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