FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Please assist in solving (not graded) Practive exercise Please provide details with formulas Business Decision Case. The following total cost data are for the Ralston manufacturing company which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. Direct Materials $1,720,00Direct Labor $ 1,120,000Variable Overhead 560,000Fixed Overheard (N1) 880,000Selling Expense (N2) 720,000Adminstrative Exp. Fixed 200,000------------------------------------ $5,200,000 ------------------------------------------------------------------ Notes1. Beyond nomral capacity, fixed overhead cost increase $30,,000 for each 20,000 units or fraction thereof until a maximum of 640,000 units is reached 2. Selling expense are at 10% sale commission. Ralston pays only one half o the regualr sales commission rates on any sale of 20,000 or more units.…arrow_forwardDo not give answer in imagearrow_forwardPlease do not give solution in image format thankuarrow_forward
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