Answer:
The correct response is "Option a ($19,043)"
Explanation:
The given values are:
Estimated overhead,
= $33,075
Sales,
= $79,268
Estimated shaper hours,
= 270 hours
Direct materials,
= $12,200
Direct labor,
= $17,400
Actual shaper hours,
= 250 hours
Now,
The fixed overhead rate will be:
= [tex]\frac{Estimated \ overhead}{Estimated \ Shaper \ hours}[/tex]
On substituting the values, we get
= [tex]\frac{33,075}{270}[/tex]
= [tex]122.50 \ per \ shaper[/tex] ($)
The applied fixed overhead will be:
= [tex]Actual \ shaper \ hours\times Fixed \ overhead \ rate[/tex]
= [tex]250\times 122.50[/tex]
= [tex]30,625[/tex] ($)
then,
The total cost of sold goods will be:
= [tex]Direct \ materials +Direct \ labor +Applied \ overhead \[/tex]
= [tex]12,200+ 17,400+ 30,625[/tex]
= [tex]60,225[/tex] ($)
The gross margin will be:
= [tex]Sales-Cost \ of \ goods \ sold[/tex]
On substituting the above given values, we get
= [tex]79,268-60,225[/tex]
= [tex]19,043[/tex] ($)
