2. Rue Company makes several types of graphic tablets. One factory specializes in two types,the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for anumber of years, while Sketcher is relatively new and struggling to gain acceptance. Dataon the two machines follow:DOODLERP2010 hoursSKETCHERP4520 hoursMaterials costAssembly timeExpected volume for coming year10,000500Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 forthe coming year.REQUIRED:1.Determine the total number of labor hours the company will work in the comingyear.2.Determine the overhead rate per labor hour.3.Determine the total cost of each tablet.The Doodler is now selling at P320, while the Sketcher now fetches P950.Determine the profit margin for each tablet.4.

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2. Rue Company makes several types of graphic tablets. One factory specializes in two types, the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for a number of years, while Sketcher is relatively new and struggling to gain acceptance. Data on the two machines follow: DOODLER P20 10 hours 10,000 SKETCHER P45 Materials cost Assembly time Expected volume for coming year 20 hours 500 Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 for the coming year. REQUIRED: 1. Determine the total number of labor hours the company will work in the coming year. 2. Determine the overhead rate per labor hour. 3. Determine the total cost of each tablet. 4. The Doodler is now selling at P320, while the Sketcher now fetches P950. Determine the profit margin for each tablet.

2. Rue Company makes several types of graphic tablets. One factory specializes in two types, the Doodler and the Sketcher. The Doodler has been a bread-and-butter product for a number of years, while Sketcher is relatively new and struggling to gain acceptance. Data on the two machines follow: DOODLER P20 10 hours 10,000 SKETCHER P45 Materials cost Assembly time Expected volume for coming year 20 hours 500 Assembly labor costs is P20 per hour and overhead costs are budgeted at P660,000 for the coming year. REQUIRED: 1. Determine the total number of labor hours the company will work in the coming year. 2. Determine the overhead rate per labor hour. 3. Determine the total cost of each tablet. 4. The Doodler is now selling at P320, while the Sketcher now fetches P950. Determine the profit margin for each tablet.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 67P: Refer to the information for Farnsworth Company (p. 139) for the first 10 months of data on...

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