Homework Answers
| Total Factory OH at 98200 MH | 470712 | |||
| Less: | ||||
| Indirect Material (98200 Mh @ 1.85 per MH) | 181670 | |||
| Rent expense (Fixed) | 167000 | |||
| maintenance cost | 122042 pesos | |||
| Note: | ||||
| Indirect material per MH: | ||||
| Indirect material cost for 68200 Mh | 126170 | |||
| Divide: MH | 68200 | |||
| Indirect material per MH: | 1.85 | |||
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Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Level of Activity Low High Direct labor-hours 67,500 90,000 Total factory overhead costs $ 314,500 $ 364,000 The factory overhead costs above consist of indirect materials, rent, and...
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