If fixed costs increase, the break-even point in units will
a. increase.
b....
If fixed costs increase, the break-even point in units will
a. increase.
b. decrease.
c. remain the same.
d. remain the same; however, contribution per unit will decrease.
23. At the beginning of the year, Wilson Company estimated the following:
Overhead
$360,000
Direct labor hours
60,000 hrs.
Wilson used normal costing and applies overhead on the basis of direct labor hours. For the month of September, direct labor hours equaled 9,350 and actual overhead equaled $46,750.
Calculate the overhead applied to production in September.
a.
$56,100
b.
$30,000
c.
$46,750
d.
$5 per direct labor hour
e.
None of these.
Answers: 1
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