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Davie, Inc used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,150,000 in establishing its predetermined overhead allocation rate for the year

Actual results showed the following: Actual manufacturing overhead $800,000 Allocated manufacturing overhead $850,000 What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.) A) 173,913 hours B) 265,625 hours C) 250,000 hours D) 184,783 hours

Top managers of Computer Manufacturing are alarmed by their operating losses

They are considering dropping the desktop product line. The company accountants have prepared the following analysis to help make this decision. Computer Manufacturing Income Statement For the Year Ended December 31, 20XX Total Laptop Desktop Sales Revenue $930,000 $575,000 $355,000 Variable Costs 507,000 267,000 240,000 Contribution Margin 423,000 308,000 115,000 Fixed Costs: Manufacturing 375,000 225,000 150,000 Selling and Administrative 62,000 45,000 17,000 Total Fixed Costs 437,000 270,000 167,000 Operating Income (Loss) $(14,000 ) $38,000 $(52,000 ) Total fixed manufacturing costs will not change if the company stops selling the desktop product line. The fixed selling and administrative costs, however, will be avoided. Prepare a differential analysis to show whether Computer Manufacturing should drop the desktop product line. Should the desktop product line be dropped? Explain your answer. What will be an ideal response