Waltz Corporation Has Two Divisions: Xi and Sigma

question 141

Multiple Choice

Waltz Corporation has two divisions: Xi and Sigma. Data from the most recent month appear below: The company's common fixed expenses total $65,100. The break-even in sales dollars for Sigma Division is closest to:

• A)$283,218
• B)$379,037
• C)$414,904
• D)$131,685

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Definitions:

Actual Overhead

The real incurred costs relating to overhead during a specified accounting period, which could vary from budgeted or standard overhead costs.

Applied Manufacturing Overhead

The allocation of manufacturing overhead costs to individual units of production, based on a predetermined rate or basis.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs for a period exceed the actual overhead costs incurred, indicating a discrepancy in costing or budgeting.

Underapplied Overhead

A situation where the actual manufacturing overhead costs are higher than the allocated costs during a period.