Question
In: Finance
Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30%...
Miller Company’s total sales are $120,000. The
company’s direct labor cost is $15,000, which represents 30% of its
total conversion cost and 40% of its total prime cost. Its total
selling and administrative expense is $18,000 and its only variable
selling and administrative expense is a sales commission of 5% of
sales. The company maintains no beginning or ending inventories and
its manufacturing overhead costs are entirely fixed
costs.
Required:
1. What is the total manufacturing overhead
cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and
administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Miller Company’s total sales are $210,000. The company’s direct labor cost is $25,200, which represents 30%...
Miller Company’s total sales are $210,000. The company’s direct
labor cost is $25,200, which represents 30% of its total conversion
cost and 40% of its total prime cost. Its total selling and
administrative expense is $31,500 and its only variable selling and
administrative expense is a sales commission of 5% of sales. The
company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What...
Miller Company’s total sales are $153,000. The company’s direct labor cost is $18,360, which represents 30%...
Miller Company’s total sales are $153,000. The company’s direct
labor cost is $18,360, which represents 30% of its total conversion
cost and 40% of its total prime cost. Its total selling and
administrative expense is $22,950 and its only variable selling and
administrative expense is a sales commission of 5% of sales. The
company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What...
Miller Company’s total sales are $192,000. The company’s direct labor cost is $23,040, which represents 30%...
Miller Company’s total sales are $192,000. The company’s direct
labor cost is $23,040, which represents 30% of its total conversion
cost and 40% of its total prime cost. Its total selling and
administrative expense is $28,800 and its only variable selling and
administrative expense is a sales commission of 5% of sales. The
company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What...
Miller Company’s total sales are $180,000. The company’s direct labor cost is $21,600, which represents 30%...
Miller Company’s total sales are $180,000. The company’s direct
labor cost is $21,600, which represents 30% of its total conversion
cost and 40% of its total prime cost. Its total selling and
administrative expense is $27,000 and its only variable selling and
administrative expense is a sales commission of 5% of sales. The
company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs. Required: 1.
What is the total manufacturing overhead cost? 2. What...
Miller Company’s total sales are $126,000. The company’s direct labor cost is $15,120, which represents 30%...
Miller Company’s total sales are $126,000. The company’s direct
labor cost is $15,120, which represents 30% of its total conversion
cost and 40% of its total prime cost. Its total selling and
administrative expense is $18,900 and its only variable selling and
administrative expense is a sales commission of 5% of sales. The
company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs.
Required:
1. What is the total manufacturing overhead cost?
2. What...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 30 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 30 persons working an average of
2,000 hours each at an average wage rate of $30 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017.
Indirect
labor
$228,200
Factory
supervision
136,000
Rent on factory
building
149,000
Factory
utilities
97,000
Factory
insurance expired
77,000
Depreciation—Factory equipment
201,000
Repairs
expense—Factory equipment
69,000
Factory supplies
used
77,800
Miscellaneous
production costs
45,000
Total estimated
overhead costs...
At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 45 persons working an average of
2,500 hours each at an average wage rate of $20 per hour. The
manager also estimated the following manufacturing overhead costs
for the year.
Indirect labor
$
330,200
Factory supervision
109,000
Rent on factory building
151,000
Factory utilities
99,000
Factory insurance expired
79,000
Depreciation—Factory equipment
384,000
Repairs expense—Factory equipment
71,000
Factory supplies used
79,800
Miscellaneous production costs
47,000
Total...
At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45...
At the beginning of the year, Learer Company’s manager estimated
total direct labor cost assuming 45 persons working an average of
2,000 hours each at an average wage rate of $25 per hour. The
manager also estimated the following manufacturing overhead costs
for the year.
Indirect labor
$
325,200
Factory supervision
233,000
Rent on factory building
146,000
Factory utilities
94,000
Factory insurance expired
74,000
Depreciation—Factory equipment
520,000
Repairs expense—Factory equipment
66,000
Factory supplies used
74,800
Miscellaneous production costs
42,000
Total...
1. Assume (1) total sales are $300,000, (2) the direct labor cost of $40,000 is 25%...
1. Assume (1) total sales are $300,000, (2) the direct labor
cost of $40,000 is 25% of total conversion costs and 40% of total
prime costs, (3) the total selling and administrative expense is
$62,000, (4) the only variable selling and administrative expense
is sales commissions of 6% of sales, (5) all manufacturing overhead
costs are fixed costs, and (6) there are no beginning or ending
inventories.
What is the total contribution margin?
2. Assume that a manufacturing company incurred...
In December 2016, Learer Company’s manager estimated next year’s total direct labor cost assuming 25 persons...
In December 2016, Learer Company’s manager estimated next year’s
total direct labor cost assuming 25 persons working an average of
2,000 hours each at an average wage rate of $40 per hour. The
manager also estimated the following manufacturing overhead costs
for 2017. Indirect labor $ 322,200 Factory supervision 219,000 Rent
on factory building 143,000 Factory utilities 91,000 Factory
insurance expired 71,000 Depreciation—Factory equipment 380,000
Repairs expense—Factory equipment 63,000 Factory supplies used
71,800 Miscellaneous production costs 39,000 Total estimated
overhead...
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