Kindly help me with the attached image. Thank you Activity Sheet 05Name: Maria Angelica MallariRating:Course / Year / Section: BSBAMM, 2-3The following are the unit costs of making and selling an item at a volume of 30,000 units per month(which represents the company's capacity):Manufacturing:Direct MaterialsP6Direct Labor12Variable Overhead2Fixed Overhead4Selling and administrative:8VariableFixed10Assume the company has 300 units left over from last year which have small defects. Theseunits will have to be sold at a reduced price as scrap or thrown away. This would have no effecton the company's other sales. The variable selling and administrative costs would have to beincurred to sell the defective units.Required:Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify whichdecision is more favorable.

To analyze the result of the change in any activity or process by the management a differential cost…

The following are the unit costs of making and selling an item at a volume of 30,000 units per month (which represents the company's capacity): Manufacturing: Direct Materials P 6 Direct Labor 12 Variable Overhead 2 Fixed Overhead 4 Selling and administrative: Variable Fixed Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. Required: Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify which decision is more favorable. 800⁰ 10

The following are the unit costs of making and selling an item at a volume of 30,000 units per month (which represents the company's capacity): Manufacturing: Direct Materials P 6 Direct Labor 12 Variable Overhead 2 Fixed Overhead 4 Selling and administrative: Variable Fixed Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. Required: Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify which decision is more favorable. 800⁰ 10

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
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A company estimates its manufacturing overhead will be $750,000 for the next year. What is the predetermined overhead rate given the following independent allocation bases? Budgeted direct labor hours: 60,000 Budgeted direct labor expense: $1,500,000 Estimated machine hours: 100,000
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