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In: Accounting
Appen Ltd. incurred fixed manufacturing costs of $25,000 during 2020. Other information for 2020 includes: ...
Appen Ltd. incurred fixed manufacturing costs of $25,000 during 2020. Other information for 2020 includes:
The budgeted denominator level is 2,500 units.
Units produced total 2,600 units.
Units sold total 1,600 units.
Variable cost per unit is $5
Beginning inventory is zero.
The fixed manufacturing cost rate is based on the budgeted denominator level. There is no spending variance for fixed manufacturing cost.
Under absorption costing, calculate the production-volume variance. Clearly label whether the variance is ‘favourable’ or ‘unfavourable’ (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) Show all workings.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Use the cost information below for Ruiz Inc. to determine thetotal manufacturing costs incurred during...
Use the cost information below for Ruiz Inc. to determine the
total manufacturing costs incurred during the year:Work in Process, January 1$53,200Work in Process, December 3138,600Direct materials used$14,100Total factory overhead7,100Direct labor used28,100Multiple Choice$63,900.$102,500.$95,400.$49,300.$14,600.
The invoice price of a manufacturing machine is $1,600,000. The company incurred other costs relating to...
The invoice price of a manufacturing machine is $1,600,000. The
company incurred other costs relating to the acquisition and
installation of the machine (freight-in, wiring, labor for
installation, etc.) that totaled $18,500. Management estimates that
the machine has a 7-year life with no residual value. The chief
executive officer, in a conversation with the chief financial
officer, suggests that the incidental costs of $18,500 should be
expensed immediately, and offered the following rationale:
A. If the machine was sold, the...
Identifying Research and Development Costs Diaz Company incurred the following costs during the year 2020. 1....
Identifying Research and Development Costs
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$4,800
2.
Materials used for research and development projects for the
current year
8,000
3.
Fees paid to external consultants related to research and
development projects
24,000
4.
Trouble-shooting in connection with breakdowns during
production
14,400
5.
Design of tooling involving new technology
7,200
6.
Cost of equipment (purchased January 2019)...
During 2020, Vaughn Manufacturing incurred weighted-average accumulated expenditures of $1730000 during construction of assets that qualified...
During 2020, Vaughn Manufacturing incurred weighted-average
accumulated expenditures of $1730000 during construction of assets
that qualified for capitalization of interest. The only debt
outstanding during 2020 was a $2000000, 12%, 5-year note payable
dated January 1, 2020.
What is the amount of interest that should be capitalized by
Vaughn during 2020? Question 10 options: a) $240,000 b) $207,600 c)
$0 d) $32,400
Mason Ltd. purchased, for cash, equipment with an invoice price of $90,000. Other costs incurred were...
Mason Ltd. purchased, for cash, equipment with an invoice price
of $90,000. Other costs incurred were freight costs, $1,400;
insurance while the equipment was in transit, $1,200; material and
labour costs in testing equipment, $2,000; oil lubricants and
supplies to be used while operating the equipment, $850; annual
fire insurance policy covering equipment after it was put in use,
$900; import duties $400. The equipment is estimated to have an
$8,000 residual value at the end of its 10-year useful...
Oakville Corp. incurred the following costs during 2020 in connection with its research and development phase...
Oakville Corp. incurred the following costs during 2020 in
connection with its research and development phase activities:
Cost of equipment acquired for use in research and development
projects over the next 5 years (straight-line depreciation
used)
$232,000
Materials consumed in research projects
64,900
Materials consumed in the development of a product committed
for manufacturing in the first quarter 2021
30,800
Consulting fees paid in the last quarter of 2020 to outsiders
for research and development projects, including $4,500 for advice...
During the month of March, Special Corporation incurred the following manufacturing costs. Depreciation of factory building...
During the month of March, Special Corporation incurred the
following manufacturing costs. Depreciation of factory building
$1250. Employer fringe benefits payable $4,950. Factory wages
payable $48,200. Factory building insurance payable $1725. Raw
,aterials on account $20,000. Raw materials purchased for cash
$21,600. Utilities for factory not yet paid $4000. Depreciation of
factory equipment $2400. Insurance for factory used up $3300.
there should be 3 sets of journals, journalize in order thank
you
Diaz Company incurred the following costs during the year 2020. 1. Salaries expense related to design...
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$12,000
2.
Materials used for research and development projects for the
current year
20,000
3.
Fees paid to external consultants related to research and
development projects
60,000
4.
Trouble-shooting in connection with breakdowns during
production
36,000
5.
Design of tooling involving new technology
18,000
6.
Cost of equipment (purchased January 2019) that will have
alternative uses...
Diaz Company incurred the following costs during the year 2020. 1. Salaries expense related to design...
Diaz Company incurred the following costs during the year
2020.
1.
Salaries expense related to design for a trademark with an
indefinite estimated life
$12,000
2.
Materials used for research and development projects for the
current year
20,000
3.
Fees paid to external consultants related to research and
development projects
60,000
4.
Trouble-shooting in connection with breakdowns during
production
36,000
5.
Design of tooling involving new technology
18,000
6.
Cost of equipment (purchased January 2019) that will have
alternative uses...
A company with fixed manufacturing costs of $500,000 produces 100,000 units in 2020 and 125,000 units...
A company with fixed manufacturing costs of $500,000 produces
100,000 units in 2020 and 125,000 units in 2021. The company sells
90,000 units each in both years. Other costs and selling price are
unchanged for 2020 and 2021. Assume that there was no beginning
inventory in 2020. Which of the following is true? Variable costing
income will be greater in 2020 than in 2021. The dollar amount of
ending inventory will be greater in 2020 than in 2021. Variable
costing...
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