Vance Electronics Expects to Make 100,000 Bluetooth Speakers During 2014

question 126

Essay

Vance Electronics expects to make 100,000 Bluetooth speakers during 2014.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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