Question - The densain water plan in naples florida bottles purified and flavored waters in a variety of sizes (20, 36, 48, 64) for sale through vending machines and retail stores. Volume is measured as bottled ounces. The plants annual budgeted fixed manufacturing overhead amounts to 1.9 million and variable manufacturing overhead is projected at .005 per bottled ounce. Projected volume in the naples plan the next year is 200 million ounces. Actual volume for the year accumulated to 210 million ounces and total manufacturing overhead incurred (both fixed and variable) was 2.8 million.
A. Calculate the densain Naples plant overhead rate
B. How much overhead was absorbed to products in the Naples plant
C. Calculate the denasain Naples plant over or under absorbed overhead
D. Describe the effect on income when the over or under absorbed overhead caculated in C is written off to cost of goods sold.