The Montreal Opera House has two types of seats: Regular seats and prime seats. The fixed costs sum up to $48,000. Below you find further relevant information: Regular Seats Prime Seats Sales Mix in Units 90% 10% Selling Price Unit CM CM Ratio $16 $6 37.5% $20 $10 50% The total manufacturing costs incurred for the year are $200,000. The overhead cost was 60% of the direct labor cost, and the direct materials cost was $25,000. Direct labor cost was

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2EA: Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2...
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The Montreal Opera House has two types of seats: Regular seats and prime seats. The fixed costs sum up to
$48,000. Below you find further relevant information:
Regular Seats Prime Seats
Sales Mix in Units 90%
10%
Selling Price
Unit CM
CM Ratio
$16
$6
37.5%
$20
$10
50%
The total manufacturing costs incurred for the year are $200,000. The overhead cost was 60% of the direct labor
cost, and the direct materials cost was $25,000. Direct labor cost was
Transcribed Image Text:The Montreal Opera House has two types of seats: Regular seats and prime seats. The fixed costs sum up to $48,000. Below you find further relevant information: Regular Seats Prime Seats Sales Mix in Units 90% 10% Selling Price Unit CM CM Ratio $16 $6 37.5% $20 $10 50% The total manufacturing costs incurred for the year are $200,000. The overhead cost was 60% of the direct labor cost, and the direct materials cost was $25,000. Direct labor cost was
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