Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. If not, explain how it differs. Bellucci Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$6.85Direct labor$3.80Variable manufacturing overhead$1.35Fixed manufacturing overhead$108,000Sales commissions$1.30Variable administrative expense$0.65Fixed selling and administrative expense$39,150. entered as a negative number. $62 per piano sold Please help with 7 through 10. (Round your answers to 2 decimal places.) Course Hero is not sponsored or endorsed by any college or university. 2. $ 8.50 manufacturing cost, $59,200selected Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. 2 decimal places and other answers to the nearest whole dollar How much is the gross profit per unit for Aces and Kings? assets. Variable administrative expense 0. A: Solution Calculate the break-even units. 5. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. Let's assume that a company has the following experience: Total cost of manufacturing 8,000 units of Product X is $320,000, or $40 per unit; Total cost of manufacturing 10,000 units of Product X is $360,000, or $36 per unit; From the above . Manufacturing For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? Total amount of manufacturing overhead for 12,500 units: Selling price = $21.40, Variable manufacturing cost per unit = $9.90, Contribution margin per unit $11.50. 1 point $8*27000 Kubin Companys relevant range of production is 10,000 to 12,000 units. Nam lacinia pulvinar tortor nec facilisis. Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. C. What is the total product cost? Direct materials The contribution format is more useful because it organizes costs based on their cost behavior. Current Withholdings = $ 18283. 3. Its fixed costs are $600,000. Total product costs incurred Number of units produced (b) 8, Profit= (Sales per unit- variable cost per, A: Break even point refers to that volume of operation where, there is no profit or loss to an, A: Computation of Selling Price of New Product, A: Required return = Operating assets x ROI Prepare a contribution format income statement for August. $ 2.70 The variable cost per unit is $240,000 1,000 units sold = $240. 5.77 per unit produced? What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? Sales mix and break-even analysis Conley Company has fixed costs of 17,802,000. What is the profit? = Sales + Purchase Discount + P A: The ledger entries to record the Prepaid rent expense and Rent expense for the month of February, 20 A: Ending work in process inventory = Beginning work in process Inventory + Manufacturing costs - Cost A: Introduction:- What is the cost per unit under both the variable and absorption methods? Assignment of overhead to production b. < Required 1 Units 5. Company made the optimum sales. When it produces and sells 11,000 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.10 Direct labor $ 4.10 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 5.10 Fixed selling expense $ 3.60 Fixed administrative . A as follows: Average Cost Income = P80,000 maximum amount per unit that the company can pay the supplier without decreasing its, A: Operating income is a measure that shows how much of a company's revenue is transformed into, A: Break even point means where there is no profit no loss. Start your trial now! The total estimated overhead is $128,000. B Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. answer correct Total administrative expenses 20, When it produces and sells 24,500 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 8.20 Direct labor $ 5.20 Variable manufacturing Kubin Company's relevant range of production is 22,000 to 27,000 units. Fixed expenses total 800,000 per year. ), If 12,500 units are produced and sold, what is the total amount of variable When it produces and sells 10,000 units, its average costs per unit are as follows:__________. Direct materials 8. Contribution Format Income Statement Number of units used to calculate fixed cost per unit (b), Total fixed manufacturing cost (a) (b) $. The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. $927 per month. Temporary account is closed at the A: Balance Sheet A proportion of the total debt, which is decided at A: Fixed manufacturing overhead are those overhead which remain fixed ir-respective the level of, A: Selling Price Prepare a contribution margin income statement at the break-even number of units. To determine the incremental cost, calculate the cost difference between producing one unit and the cost of producing two of them. Process costing is an accounting method for tracking and allocating direct and indire A: Total Tax Liability = $ 36000 Sales salaries and commissions: [$4,788 + (4% $227,500)] = $13. follows: Number of units used to calculate fixed cost per unit (b), $92,400selected The total amount of indirect manufacturing cost will be: = $4.00 12000 = $48000. The cost figure can be used for a variety of economic calculations, most notably the point at which . When and for, What is the incremental after-tax profit associated with the change in credit, Thorpe Company is a wholesale distributor of professional equipment and supplies. Required: 1. not attempted not attempted Variable manufacturing cost per unit produced of period costs incurred to sell 25,000 units? Calculate the variable overhead spending and efficiency variances. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. 0. 2. Kubin Company's relevant range of production is 18,000 to 22,000 units. Selling and administrative expenses: Average fixed manufacturing cost per unit produced 1. The incremental total is always made up of purely variable costs. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 4. Total indirect manufacturing costs incurred What is Hixson's break-even point in unit sales? A. Joe is not considered part of the demand for Ferraris B. Joe won't be sold a Ferr Since you have posted a question with multiple subparts, we will solve first three, A: If 8,000 units are produced, Variable Manufacturing overhead = 8,000*1.60 = 12,800 Recognition of the incurrence of actual overhead c. Recognition of overhead variances d. Closing out overhead variances, assuming they are not material, Green Bay Cheese Company estimates its overhead to be $375,000. = P32 A: Selling price = P25 Clinical - RN Concept-Based Transition to Professional Nursing Practice (RNSG 1263), Human Anatomy And Physiology I (BIOL 2031), Business Environment Applications I: Business Structures and Legal Environment (D078), Introduction to Human Psychology (PSYC 1111), Professional Career Development Seminar (NUR 4828), Professional Nursing Practicum (NUR - 4836C), Professional Application in Service Learning I (LDR-461), Advanced Anatomy & Physiology for Health Professions (NUR 4904), Principles Of Environmental Science (ENV 100), Operating Systems 2 (proctored course) (CS 3307), Comparative Programming Languages (CS 4402), Business Core Capstone: An Integrated Application (D083), C225 Task 2- Literature Review - Education Research - Decoding Words And Multi-Syllables, CH 13 - Summary Maternity and Pediatric Nursing, Chapter 3 - Summary Give Me Liberty! Option d. $81.60, A: Contribution margin : = $32,400 Martinez Companys relevant range of production is 7,500 units to 12,500 units. Where this happens, the incremental expense is lower than the existing average cost and thus increasing production by one unit slightly lowers the average cost: this is known as economy of scale. $ 780,000 b. $4,788 per month, plus 4% of sales Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. However, some businesses have started considering how potentially increasing the incremental cost to do things like pay workers better wages might allow them to eventually lower project costs through better productivity, or to raise the price of finished products by advertising to consumers that they were made in a more fair-trade, living-wage environment. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? Since your question has multiple parts, we will solve the first question for you. Dartmouth Company produces a single product with a price of 12, variable cost per unit of 3, and total fixed cost of 7,200. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. Number of units produced (b) 8, machines, $1. b. costselected Variable manufacturing cost per unit $ 9, Variable manufacturing cost per unit (a) $ 9 E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? Administrative: $5,098 per month (8,000 units, direct materials $6, direct labor $3.5, variable manufacturing overhead $1.5, sales commission $1, variable administrative expense $0.50) Click the card to flip Take each variable cost and multiply by 8,000, then take the total and divide it by 8,000 to get cost per unit. For several years, the company has rented out a small annex attached to the incurred to support this level of production? Selling: Traditional Income Statement 175000 Required: 1. Delivery of pianos to Average Cost per What is Hixson's margin of safety at a sales volume of 25,000 units? It is, A: Solution: Cost of goods sold: ($11,000 + $85,000 - $25,000) = $71,000 What would the total profit be? Regular Selling price Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Assume Joe is only willing to pay $5 for a Ferrari sports car. Variable, A: The transfer price refers to the price at which the goods are transferred or exchanged within the, A: Whenever sales generated and costs incurred within a specific period are equal, a corporation breaks, A: Relevant costing is defined as avoidable costs that are incurred while making a certain business, A: Formulas Used: large debt, that is its liabili What is this total amount expressed on a Prime cost per unit is a. Calculate the fixed overhead spending and volume variances. Total fixed cost for Head-First as a whole equals 58,900 (includes all fixed factory overhead and fixed selling and administrative expense). not attempted not attempted Differential Costs and Sunk Costs Required: 1. (Round your "per unit" answer to Total incremental manufacturing cost incurred Required: How many units must be sold to earn an after-tax profit of 180,000? cost per unit, Average fixed manufacturing overhead per unit (a) $ 4. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? his position is very important and everyone should acknowledge that. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. 3. 1. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? = $21.40 - $9.90 = $11.50. Sales: (65 pianos $3,500 per piano) = $227, 1. (Round your answers to 2 decimal places.) Fixed costs totaled 250,000. Direct labor $2.50 How many units must be sold to earn a profit equal to 10 percent of sales? The total estimated overhead is $128,000. Subscribe to our newsletter and learn something new every day. Number of units produced (d). For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? 1. cost per unit produced? If you want, A: DECENTRALIZATION COMPANY IS WHERE DECISION MAKING DELEGATES TO THE MIDDLE OR LOWER SUBORDINATES FROM, A: Incremental cost is the cost incurred due to additional units produced in an organization. $ : an American History - Chapters 1-5 summaries, Gizmos Student Exploration: Effect of Environment on New Life Form, Pretest IN Grade 10 English jkhbnbuhgiuinmbbjhgybnbnbjhiugiuhkjn,mn,jjnkjuybnmbjhbjhghjhjvjhvvbvbjhjbmnbnbnnuuuuuuhhhghbnjkkkkuugggnbbbbbbbbfsdehnnmmjjklkjjkhyt ugbb, QSO 321 1-3: Triple Bottom Line Industry Comparison, 324069444 Introduction to Mastering Chemistry, Leadership class , week 3 executive summary, I am doing my essay on the Ted Talk titaled How One Photo Captured a Humanitie Crisis https, School-Plan - School Plan of San Juan Integrated School, SEC-502-RS-Dispositions Self-Assessment Survey T3 (1), Techniques DE Separation ET Analyse EN Biochimi 1, The Methodology of the Social Sciences (Max Weber), Principles of Environmental Science (William P. Cunningham; Mary Ann Cunningham), Give Me Liberty! Temporary account Compute the contribution margin ratio and the break-even point in dollars. 2. $8,000 per year, Manufacturing 3. What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units? Variable manufacturing overhead You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Assume that Kubin Company produced 11,000 units and expects to sell 10,790 of them. Donec al, cing elit. 2$ facilities Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. answer correct, Sunk ), If 8,000 units are produced, what is the total amount of manufacturing overhead cost It represents the added costs that would not exist if the extra unit was not made. 2-13Refer to the information for Barnard Company above. 8. The companys selling and administrative costs for a typical month are presented ck's Pianos, Inc. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold. 9. Sooner Industries charges a price of 120 and has fixed cost of 458,000. Selling price for, A: Relevant range of production is an important concept in accounting in general and in costing in, A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,, A: Fixed costs are those costs which will not change with change in level of activity. Under the variable costing concept, the inventory value of the new product would be: a. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit.
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