Grisham Products Inc.manufactures engines for small scooters.At 30 September,the company had 2500 engines in inventory.The company's policy is to maintain an ending inventory equal to 8 per cent of next month's sales.Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $.30 per minute.Grisham applies overhead to engines at a rate of $.15 per direct labour minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{ll}
\text { October } & 12000 \text { units } \
\text { November } & 20000 \text { units } \
\text { December } & 35000 \text { units }
\end{array}$

What is the projected applied manufacturing overhead cost for November?
A) $153 900
B) $143 100
C) $ 42 930
D) $126 900

Question

Grisham Products Inc.manufactures engines for small scooters.At 30 September,the company had 2500 engines in inventory.The company's policy is to maintain an ending inventory equal to 8 per cent of next month's sales.Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $.30 per minute.Grisham applies overhead to engines at a rate of $.15 per direct labour minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{ll}
\text { October } & 12000 \text { units } \
\text { November } & 20000 \text { units } \
\text { December } & 35000 \text { units }
\end{array}$

What is the projected applied manufacturing overhead cost for November?
A) $153 900
B) $143 100
C) $ 42 930
D) $126 900

Quizplus · Accepted Answer

The Answer of Grisham Products Inc.manufactures engines for small scooters.At 30 September,the company had 2500 engines in inventory.The company's policy is to maintain an ending inventory equal to 8 per cent of next month's sales.Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $.30 per minute.Grisham applies overhead to engines at a rate of $.15 per direct labour minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{ll}
\text { October } & 12000 \text { units } \
\text { November } & 20000 \text { units } \
\text { December } & 35000 \text { units }
\end{array}$

What is the projected applied manufacturing overhead cost for November?
A) $153 900
B) $143 100
C) $ 42 930
D) $126 900

Grisham Products Inc What Is the Projected Applied Manufacturing Overhead Cost for November