Manufacturing overhead—multiple application bases Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $5.60 per machine hour, and the balance of the overhead is applied at the rate of 240% of direct labor cost. Required:

a. Calculate the cost per unit of October production of 4,200 toy flutes that required

1. Raw materials costing $490.

2. 21 direct labor hours costing $357.

3. 36 machine hours.

b. At the end of October, 3,870 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.

a. $ 0.45

b. $148.50

Explanation:

Production Cost Schedule for 4,200 toy flutes

Raw materials costing                   $490.00

Direct Labor                                   $357.00

Overheads ($5.60 × 36)                $201.60

Overheads ($357 × 240%)            $856.80

Total Cost                                    $1,905.40

Cost per unit = Total Cost / Total Number of Units produced

                      =  $1,905.40 / 4,200

                      =  $ 0.45

Closing Inventory = Units Left × Cost per unit

                              = (4,200 -  3,870) × $ 0.45

                              =  330 × $ 0.45

                              =  $148.50

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this

the correct answer is:     [c]:     " cyclical unemployment " .