ACCT 346 help A Guide to career/uophelp.com ACCT 346 help A Guide to career/uophelp.com | Page 42

(TCO 2) Acme Fireworks uses a traditional overhead allocation based
on direct labor hours. For the current year overhead is estimated at
$1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual
hours worked were 195,000 and actual overhead was $978,000.
(a) Compute the predetermined manufacturing overhead rate.
(b) Compute the applied manufacturing overhead.
(c) Compute the amount of over/under applied manufacturing overhead.
Points Received:
25 of 25
Page:
1234
1.Question :
(TCO 9) An investment of $185,575 is expected to generate returns of
$65,000 per year for each of the next four years. What is the
investment's internal rate of return?
Points Received:
25 of 25
2.Question :
(TCO 4) Legal Docs Inc is a legal services firm that files incorporation
papers for small businesses. They charge $1,000 per application. This
year's income statement shows the following:
Sales $1,295,000
Variable Expenses $1,023,000
Contribution margin $272,000
Fixed costs $250,000
Profit $22,000
Required:
(a) Compute the break-even point in units.
(b) Compute the contribution margin ratio.