Question
In: Accounting
An entity has the following cost components for 150,000 units of product for the year: Direct...
| An entity has the following cost components for 150,000 units of product for the year: | |||||
| Direct Materials | 325,000 | ||||
| Direct Labor | 175,000 | ||||
| Manufacturing Overhead | 225,000 | ||||
| Selling and Administrative expense | 175,000 | ||||
| All costs are variable except for 75,000 of manufacturing overhead and 75,000 of selling and administrative expenses. The total costs to produce and sell 175,000 units for the year are: | |||||
| Answer: | |||||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Ahngram Corp. has 1,000 defective units of a product that cost $2.50 per unit in direct...
Ahngram Corp. has 1,000 defective units of a product that cost
$2.50 per unit in direct costs and $6.00 per unit in indirect cost
when produced last year. The units can be sold as scrap for $3.50
per unit or reworked at an additional cost of $2.00 and sold at
full price of $10.50. The incremental net income (loss) from the
choice of reworking the units would be: Multiple Choice $3,500. $0.
($2,000). $8,500. $2,000.
Please explain how you get...
direct material (DM), direct labor (DL) and manufacturing overhead (MOH) are considered components of product cost...
direct material (DM), direct labor (DL) and manufacturing
overhead (MOH) are considered components of product
cost that eventually become part of inventory cost.
Selling and administrative expenses are typically considered
period costs that should be charged to expenses in the
period in which those are incurred.
Now, what happens if a period cost is incorrectly
classified as a product cost, and vice versa? What is affected, and
how does that matter? [think about where these costs eventually end
up and...
Yacca Limited has prepared the following profit analysis, for the current financial year: Sales (150,000 units)....
Yacca Limited has prepared the following profit analysis, for
the current financial year:
Sales (150,000 units). $1,275,000
Variable expenses. $712,500
Contribution margin. $562,500
Fixed expenses $252,000
Profit. $310,500
Management are considering a range of options to improve
profitability. These options include reducing the selling price by
$0.15 per
unit and updating machinery and production methods. If machinery
and production methods are updated, fixed expenses will
increase by $72,000 per year and variable expenses will decrease
by $1.40 per unit. However,...
Dewqas Limited has prepared the following profit analysis, for the current financial year: Sales (150,000 units) ...
Dewqas Limited has
prepared the following profit analysis, for the current financial
year:
Sales (150,000
units)
$
1,485,000 Variable expenses
$
712,500
Contribution
margin
$
772,500
Fixed
expenses
$
258,000
Profit
$
514,500
Management are considering a range of
options to improve profitability. These options include reducing
the selling price by $0.25 per unit and updating machinery and
production methods. If machinery and production methods are
updated, fixed expenses will increase by $76,000 per year and
variable expenses will decrease...
The Gatson manufacturing company has estimated the following components for a new product. Fixed cost =...
The Gatson manufacturing company has estimated the following
components for a new product. Fixed cost = $50,000 Material cost
per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit =
$7.50 Round your answer to the nearest whole number.
1. Using a spreadsheet model, what will be the resulting profit
if the company decides to make 70,000 units of the new product?
2. Construct a one-way data table with production volume as the
column input and profit...
The Gatson manufacturing company has estimated the following components for a new product. Fixed cost =...
The Gatson manufacturing company has estimated the following
components for a new product. Fixed cost = $50,000 Material cost
per unit = $2.15 Labor cost per unit = $2.00 Revenue per unit =
$7.50 Round your answer to the nearest whole number.
1. Using a spreadsheet model, what will be the resulting profit
if the company decides to make 70,000 units of the new product?
2. Construct a one-way data table with production volume as the
column input and profit...
Produce a direct materials budget with the following additional information. Units = 83,000 Direct material Cost...
Produce a direct
materials budget with the following additional information.
Units = 83,000
Direct material Cost
Usage
Steel
$8.00/lb 12.100 oz/unit
Plastic
$3.50/lb 10.897 oz/unit
What is the total
direct materials cost?
Note: lb = pound = 16
oz
The standard cost of Product B manufactured by Pharrell Company includes 2.4 units of direct materials...
The standard cost of Product B manufactured by Pharrell Company
includes 2.4 units of direct materials at $5.30 per unit. During
June, 26,600 units of direct materials are purchased at a cost of
$5.25 per unit, and 26,600 units of direct materials are used to
produce 10,900 units of Product B.
(a)
Compute the total materials variance and the price and quantity
variances.
Total materials variance
$enter a dollar amount
select an option
...
The standard cost of Product B manufactured by Pharrell Company includes 3.0 units of direct materials...
The standard cost of Product B manufactured by Pharrell Company
includes 3.0 units of direct materials at $6.8 per unit. During
June, 27,500 units of direct materials are purchased at a cost of
$6.60 per unit, and 27,500 units of direct materials are used to
produce 9,100 units of Product B.
(a)
Compute the total materials variance and the price and quantity
variances.
Total materials variance
$enter a dollar amount
select a type of the variance
...
The standard cost of product 777 includes 2.70 units of direct materials at $5.80 per unit....
The standard cost of product 777 includes 2.70 units of direct
materials at $5.80 per unit. During August, the company bought
28,500 units of materials at $5.90 and used those materials to
produce 10,800 units.
Compute the total, price, and quantity variances for
materials.
Total materials variance
$
Neither favorable nor
unfavorableFavorableUnfavorable
Materials price variance
$
...
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