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I only need to know how to Calculate the Variable Overhead for; Marcy, Tina, Car

ID: 2503365 • Letter: I

Question

I only need to know how to Calculate the Variable Overhead for; Marcy, Tina, Cari, Lenny, Sewing Kit for this question i have provide the begining of the calculation below the question, Please I need to know how to calculated I do have the answer (Marcy 1.6 and so on.). Please be make sure you can explained clearly.


The Brandilyn Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining the best sales and production mix for the coming year. The company has provided the following data:


Product Demand Next Year            (Unit) Selling Price pre Unit Direct Materials Direct Labour Marcy      26,000.00         35.00                          3.50                 4.80 Tina      42,000.00         24.00                          2.30                 3.00 Cari      40,000.00         22.00                          4.50                 8.40 Lenny      46,000.00         18.00                          3.10                 6.00 Sewing Kit    450,000.00         14.00                          1.50                 2.40 a) The company

Explanation / Answer




Variable Overhead = Direct Labour Hour per unit per hour *4

Variable overhead costs are $ 4.00 per direct labor-hour. (Given)


Product Marcy Tina Cari Lenny Sewing Kit Direct Labour (is given for each one)           4.80           3.00           8.40           6.00                  2.40 Direct Labour Hour per unit per hour (a) (4.8/12)           0.40           0.25           0.70           0.50                  0.20 Selling Price pre Unit (given)         35.00         24.00         22.00         18.00                14.00 Variable Cost





Direct Materials           3.50           2.30           4.50           3.10                  1.50 Direct Labour (is given for each one)           4.80           3.00           8.40           6.00                  2.40 Variable Overhead (0.4*4) (a*4)           1.60           1.00           2.80           2.00                  0.80 Total Variable Cost
          9.90           6.30         15.70         11.10                  4.70 Contribution Margin (35-9.90) (b)         25.10         17.70           6.30           6.90                  9.30 Contribution Margin per DLH (a/b)         62.75         70.80           9.00         13.80                46.50