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  • Manufacturing Overhead (MO)

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    Manufacturing overhead for Fakruddin Restaurant's tehari includes monthly costs of $4160 for fancy goods, $7200 for employee salaries, $9000 for rent, $3600 for electricity, and $2700 for gas. They sell 28 packets of tehari per day at $140 per packet, with a variable cost of $110 per packet. With 840 units sold per month and fixed costs of $15,300, the contribution margin per unit is $30 and the contribution margin ratio is 0.21.

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    Manufacturing overhead for Fakruddin Restaurant's tehari includes monthly costs of $4160 for fancy goods, $7200 for employee salaries, $9000 for rent, $3600 for electricity, and $2700 for gas. They sell 28 packets of tehari per day at $140 per packet, with a variable cost of $110 per packet. With 840 units sold per month and fixed costs of $15,300, the contribution margin per unit is $30 and the contribution margin ratio is 0.21.

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    12 views1 page

    Manufacturing Overhead (MO)

    Uploaded by

    sk.monir
    Manufacturing overhead for Fakruddin Restaurant's tehari includes monthly costs of $4160 for fancy goods, $7200 for employee salaries, $9000 for rent, $3600 for electricity, and $2700 for gas. They sell 28 packets of tehari per day at $140 per packet, with a variable cost of $110 per packet. With 840 units sold per month and fixed costs of $15,300, the contribution margin per unit is $30 and the contribution margin ratio is 0.21.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Manufacturing Overhead (MO): In “Manufacturing Overhead”, the

    indirect materials, indirect labor and other overhead are included.

    In Fakruddin Restaurant, their manufacturing overhead costs only for tehari are---

    1. Fancy goods cost = $4160 (monthly),


    2. Employees salary = $7200 (monthly),
    3. Rent = $9000 (monthly),
    4. Electricity bill = $3600 (monthly),
    5. Gas bill = $2700 (monthly),
    6. Cleaners cost = $2000 (monthly).

    Product Cost: In Fakruddin Restaurant, they sell per packet of tehari in $140
    and per packet cost of tehari is $110. Per day they sell 28 packets of tehari. So,

     Selling Price per unit (SP) = $140


     Variable cost per unit (VC) = $110
     Total unit = (28 packets of tehari * 30 days)
    = 840 units
     Fixed Cost (FC) = $9000 (rent) + $3600 (electricity bill) + $2700 (gas bill)
    = $15300
     Contribution Margin (CM) per unit = SP per unit – VC per unit
    = $140 - $110
    = $30

    CM per unit
     CM Ratio = SP per unit

    $ 30
    = $ 140

    = 0.21

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