White Mountain Company Produces Various Types of Snow Skis

question 79

Essay

White Mountain Company produces various types of snow skis.Estimated overhead for the year was $780,000 and estimated direct labour hours were 260,000.During the month of June,18,100 direct labour hours were worked,$55,400 of direct materials were used,and the average wage was $15 per hour.In June,10,000 pairs of skis were produced.
A. Calculate the predetermined overhead rate.
B. Calculate the overhead applied to production for June.
C. Calculate unit cost for each pair of skis.

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Definitions:

Bank Runs

A situation where a large number of a bank's depositors try to withdraw their funds simultaneously over concerns about the bank's solvency.

Reserve Banking

A banking system in which banks hold a fraction of their deposits in reserve, while lending out the remainder to generate profits.

Federal Funds Rate

The interest rate at which banks and credit unions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

Reserve Requirement

A regulatory mandate on banks to hold a certain percentage of their deposits in reserve either in their vaults or at the central bank.