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San Diego State University Operations And Supply Chain Management Assignment Help - Corporation


Question - Exercise 5-24 Methods of Estimating Costs: Account Analysis (L.O. 3) A consulting firm's accounting records show the following costs for year 1: Direct materials (supplies) $ 360,000 Direct labor 2,580,000 Total overhead 1,140,000 Production was 150,000 billable hours. Fixed overhead was $600,000. For year 2, direct materials costs are expected to increase by 10 percent per unit. Direct labor costs are expected to increase by 15 percent. Variable overhead per billable hour is expected to remain the same, but fixed overhead is expected to increase by 5 percent. Required: (a) Year 2 production is expected to be 195,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed ...Read More

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