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Maxie Pty Ltd Makes and Sells Two Types of Shoes

question 99

Multiple Choice

Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows: Maxie Pty Ltd makes and sells two types of shoes, Plain and Fancy. Product data is as follows:   Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000. Determine the weighted average unit contribution margin. A)  $17.00 B)  $9.25 C)  $9.00 D)  $4.80
Sixty per cent of the sales in units are Plain and annual fixed expenses are $45 000.
Determine the weighted average unit contribution margin.


Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs based on machine usage.

Underapplied Overhead

A condition where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual overhead incurred.

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