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For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period? (a) 450 units (b) 240 units (c) 818 units (d) 409 units

For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period? (a) 450 units (b) 240 units (c) 818 units (d) 409 units

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 2PA: Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 27,000...
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For the period Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labour is 2 hours at a rate of $26 per hour. Fixed manufacturing overhead is applied on the basis of labour hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven for the period?

(a) 450 units

(b) 240 units

(c) 818 units

(d) 409 units

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