Vance Electronics Expects to Make 100,000 Bluetooth Speakers During the Current

question 77

Essay

Vance Electronics expects to make 100,000 Bluetooth speakers during the current year.Direct materials cost per unit are estimated at $12,and direct labor cost is expected to be $4 per unit.The total manufacturing overhead for the year is budgeted at $850,000.
Required:
1)Calculate the amount of overhead that should be allocated to each speaker during the year.
2)Assume that,during the month of October,Vance made and sold 8,000 speakers.What would the cost of goods sold be for the month?
3)Assume that the company sells the speakers at cost plus 40% of cost.What would be the selling price for each speaker?

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