HSCI 1105 Study Guide - Midterm Guide: River Medlock, Direct Labor Cost, Fixed Cost
7 Feb 2014
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Select the best answer for each question and fill your answer in on your scantron. Good luck: powney company is considering adding a new product engine oil to its automotive division. The sales price will be . 40 per unit. The variable cost per unit is expected to be . 00 and the fixed costs are ,000. Budgeted sales = . 40 * 20,000 = ,000. Breakeven sales = . 40x - . 00x = . 40x - ,000 = 0. X = 15,000 units * . 40 = ,000. Mos = 48,000 36,000 = ,000: ,000, ,000, ,000, ,000, none of the above. 2. at the beginning of 2008, barr co. estimated that its total annual fixed overhead costs would amount to ,000. Further, barr estimated that its volume of production would be. Based on these estimates, barr computed a predetermined overhead rate that was used to allocate overhead costs to the products made in 2008. As predicted, actual fixed overhead costs did amount to ,000.
