6) Ewing Incorporated makes one product and has provided the following information: Budgeted selling price per unit. Budgeted unit sales, February Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense $ 100 per unit sold 10,000 units 5 pounds $ 3.00 per pound 2.5 direct labor- hours $ 18.00 per direct labor- hour $ 11.00 per direct labor-hour $ 2.70 per unit sold $ 70,000 per month The estimated net operating income (loss) for February is closest to: A) $6,000 B) $28,000 c) $125,000 D) $56,000
6) Ewing Incorporated makes one product and has provided the following information: Budgeted selling price per unit. Budgeted unit sales, February Raw materials requirement per unit of output Raw materials cost Direct labor requirement per unit of output Direct labor wage rate Predetermined overhead rate (all variable) Variable selling and administrative expense Fixed selling and administrative expense $ 100 per unit sold 10,000 units 5 pounds $ 3.00 per pound 2.5 direct labor- hours $ 18.00 per direct labor- hour $ 11.00 per direct labor-hour $ 2.70 per unit sold $ 70,000 per month The estimated net operating income (loss) for February is closest to: A) $6,000 B) $28,000 c) $125,000 D) $56,000
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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