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Home Q & A Board Other Fields Homework Help Business Accounting
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mzeplin mzeplin
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5 years ago
Rosewood company sells wooden carvings for $300 each. The direct materials cost per unit is $160 and the direct labor is 2 hours at a rate of $26 per hour. Manufacturing overhead is applied on the basis of labor hours at a rate of $36 per hour. Rosewood makes and sells 1,000 units per period. How many units must Rosewood sell to breakeven?
A) 409 units
B) 450 units
C) 240 units
D) 818 units
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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#1
5 years ago
 D
Explanation:  Correct. Unit Contribution Margin 300 - 160 - (2 x $26) = $88
Fixed cost per period = (2 x $36) x 1,000 units = $72,000
Breakeven = FC / CM = $72,000 / $88 = 818 units
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