The Following Data Pertain to the Three Products Produced by Alberts

question 108

Multiple Choice

The following data pertain to the three products produced by Alberts Corporation: Fixed costs are $90,000 per month.
Sixty percent of all units sold are Product A,30 percent are Product B,and 10 percent are Product C What is the monthly break-even point for total units?

• A)45,000 units
• B)36,000 units.
• C)60,000 units
• D)180,000 units

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Definitions:

Manufacturing Overhead

All manufacturing costs that are not directly attributable to a product’s production, such as indirect materials and labor.

Raw Materials

Fundamental materials in their raw, altered, or partially processed forms utilized as input for manufacturing.

Overhead Rate

A ratio used to allocate indirect costs to products or services, calculated by dividing total overhead costs by an allocation base, such as direct labor hours.

Direct Labor Cost

The total expense of employing workers who are directly involved in the production of goods, including wages and salaries.