Mills Company Uses Standard Costing for Direct Materials and Direct

question 51

Essay

Mills Company uses standard costing for direct materials and direct labor.Management would like to use standard costing for variable and fixed overhead.
The following monthly cost functions were developed for overhead items:
The cost functions are considered reliable within a relevant range of 20,000 to 40,000 direct labor hours.The company expects to operate at 25,000 direct labor hours per month.
Information for the month of June is as follows:
Required:

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Definitions:

Employers

Individuals or entities that hire and pay people to work, typically having the authority to dictate the employees' duties and the manner in which they perform these duties.

Title VII

A provision of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Disparate Impact

Practices in employment, housing, and other areas that adversely affect one group more significantly than another, even when there is no intentional discrimination.

Occupational Diseases

Illnesses resulting from the conditions or environment of a particular occupation.