Posted: May 3rd, 2016

What is the cost of replacing the lighting systems in USA?

Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciation – building 23,000
Depreciation – machinery 73,000
Taxes and insurance 20,000
Supervision 220,750
Total fixed overhead costs 336,750
Total overhead costs $ 471,750

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (46,000 Ibs. @ $5.20 per lb.) $ 239,200
Direct labor (31,000 hrs. @ $14.40 per hr.) 446,400
Overhead costs
Indirect materials $ 43,750
Indirect labor 176,750
Power 17,250
Repairs and maintenance 34,500
Depreciation – building 23,000
Depreciation – machinery 98,550
Taxes and insurance 18,000
Supervision 220,750 632,550
Total costs $ 1,318,150Total variable overhead costs $ 135,000
Fixed overhead costs
Depreciation – building 23,000
Depreciation – machinery 73,000
Taxes and insurance 20,000
Supervision 220,750
Total fixed overhead costs 336,750
Total overhead costs $ 471,750

The company incurred the following actual costs when it operated at 75% of capacity in October.

Direct materials (46,000 Ibs. @ $5.20 per lb.) $ 239,200
Direct labor (31,000 hrs. @ $14.40 per hr.) 446,400
Overhead costs
Indirect materials $ 43,750
Indirect labor 176,750
Power 17,250
Repairs and maintenance 34,500
Depreciation – building 23,000
Depreciation – machinery 98,550
Taxes and insurance 18,000
Supervision 220,750 632,550
Total costs $ 1,318,150