CourseLover

(12)

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About CourseLover

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Algebra,Applied Sciences,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Engineering,Health & Medical,HR Management,Law,Marketing,Math,Physics,Psychology,Programming,Science Hide all
Teaching Since: May 2017
Last Sign in: 292 Weeks Ago, 5 Days Ago
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  • MCS,MBA(IT), Pursuing PHD
    Devry University
    Sep-2004 - Aug-2010

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  • Assistant Financial Analyst
    NatSteel Holdings Pte Ltd
    Aug-2007 - Jul-2017

Category > Management Posted 19 Dec 2017 My Price 10.00

to compute the operating income

trouble with a problem.  Revenue $480,000 direct material cost 50,000, direct labor cost 300,000, overhead cost 150,000 and operating income (20,000).  Pool supervision  estimated overhead 60,000, cost driver is direct labor cost.   the per unit is 15%.    I need to compute the operating income for this using the activity based overhead rate.   I thought the calculation was 300,000  x 15 for 45,000.   but fellow students say the answer is 22,500.   I would like to know how they arrived at the answer. 

Answers

CourseLover
(12)
Status NEW Posted 19 Dec 2017 07:12 AM My Price 10.00

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