Question
In: Accounting
A company recorded the following production costs during the previous two-week period: Week 1 Week 2...
| A company recorded the following production costs during the previous two-week period: | |||||
| Week 1 | Week 2 | ||||
| Direct labor costs | 17,000 | 22,600 | |||
| Other manufacturing costs | 25,000 | 31,400 | |||
| Units produced | 5,000 | 7,000 | |||
| Assuming both weeks fall in the same relevant range, what was the total fixed cost during Week 1? | |||||
Solutions
Expert Solution
Variable direct labor cost per unit = Change in direct labor cost/ Change in units
= (22,600-17,000)/(7,000-5,000)
= 5,600/2,000
= $2.8
Variable direct labor cost for 5,000 units = Variable direct labor cost per unit x 5,000
= 2.8 x 5,000
= $14,000
Total direct labor costs for 5,000 units = $17,000
Fixed direct labor cost = Total direct labor costs for 5,000 units- Variable direct labor cost for 5,000 units
= 17,000-14,000
= $3,000
Variable manufacturing costs per unit = Change in manufacturing costs/ Change in units
= (31,400-25,000)/(7,000-5,000)
= 6,400/2,000
= $3.2
Variable manufacturing cost for 5,000 units = Variable manufacturing costs per unit x 5,000
= 3.2 x 5,000
= $16,000
Total manufacturing costs for 5,000 units = $25,000
Fixed manufacturing costs = Total manufacturing costs for 5,000 units- Variable manufacturing cost for 5,000 units
= 25,000-16,000
= $9,000
Total fixed cost = Fixed direct labor cost + Fixed manufacturing costs
= 3,000+9,000
= $12,000
The total fixed cost during Week 1 = $12,000
ekkarill92 answered 1 year agoRelated Solutions
Dolphin City recorded $700,000 gross payroll in the General Fund for a two-week pay period. Withholdings...
Dolphin City recorded $700,000 gross payroll in
the General Fund for a two-week pay period.
Withholdings were as follows: $180,000 for Federal
income tax;$53,000 for the
employee’s share of FICA tax; and
$41,000 for State income tax. Record an
appropriate journal entry in the General Fund,
assuming the net amount due to employees was paid in cash. After
recording that entry, make an additional entry to record the City's
liability for the employers’ share of FICA tax
related to the...
During a 5-week period in 2007, the stock of an insurance company and the stock of...
During a 5-week period in 2007, the stock of an insurance
company and the stock of a small tech company showed the following
weekly percentage changes.
Company
Weekly Price Change (%)
Insurance Stock
2
-1
-1.7
0.6
-0.3
Tech Stock
3
2.2
1.3
-4.3
1.7
Find the variance of the weekly price changes of each. (Round your
answers to four decimal places.)
insurance stock
tech stock
Relate the two variances found to the riskiness of the two
stocks.
The two...
During this accounting period, a company has variable costs of €27410, total fixed costs per period...
During this accounting period, a company has variable costs of
€27410, total fixed costs per period of €20820, contribution margin
ratio of 67 percent and an income tax rate of 27 percent.
If the desired after tax net income is €9320; then the sales
revenue (in Euros) for this period is ________.
A company has the following actual and standard production measures during the period: Actual units...
A company has the following actual and standard production
measures during the period:
Actual units produced 390
Actual materials purchased and used
2,583 lbs
Actual materials price $9 per lb
Actual labor
hours
1430
Actual labor
rate
$21.4 per hour
Actual variable
overhead
$ 7,950
Standard materials per
unit 6 lbs
Standard materials purchased and used $8.6 per lb
Standard labor hours per unit 3
Standard labor rate
$22.5 per...
1). costs are costs that are incurred for the production requirements of a certain period. T/F...
1). costs are costs that are incurred for the
production requirements of a certain period.
T/F
2) budgetary slack can be avoided if lower and mid level managers
are requested to support all of their spending requirements with
specific operational plans.
T/F
3) for an automotive repair shop the wages of mechanics would be
classified as direct labor cost.
T/F
4) when goods are sold their cost are transferred from
work-in-process to finish Goods
T/F
During the past month, the following costs were incurred in the three production departments and two...
During the past month, the following costs were incurred in the
three production departments and two service departments of Kim
& Co.:
Using Department
Supplying Department
Administration
Factory Support
Fabrication
Assembly
Finishing
Administration
−
0.40
0.30
0.20
0.10
Factory support
0.15
−
0.15
0.15
0.55
Direct cost
$
680,000
$
1,350,000
$
1,760,000
$
288,000
$
258,000
Required:
Allocate service department costs to Fabrication, Assembly, and
Finishing using the reciprocal method, and determine the total
costs of Fabrication, Assembly, and...
During the past month, the following costs were incurred in the three production departments and two...
During the past month, the following costs were incurred in the
three production departments and two service departments of Kim
& Co.:
Using Department
Supplying Department
Administration
Factory Support
Fabrication
Assembly
Finishing
Administration
?
0.40
0.20
0.10
0.30
Factory support
0.10
?
0.10
0.20
0.60
Direct cost
$
570,000
$
1,295,000
$
1,650,000
$
277,000
$
247,000
Required:
Allocate service department costs to Fabrication, Assembly, and
Finishing using the reciprocal method, and determine the total
costs of Fabrication, Assembly, and...
During the past month, the following costs were incurred in the three production departments and two...
During the past month, the following costs were incurred in the
three production departments and two service departments of Kim
& Co.:
Using Department
Supplying Department Administration Factory Support Fabrication
Assembly Finishing
Administration − 0.40 0.30 0.20 0.10
Factory support 0.10 − 0.30
0.10 0.50
Direct cost $ 520,000 $ 1,270,000 $ 1,600,000 $ 272,000 $
242,000
Required: Allocate service department costs to Fabrication,
Assembly, and Finishing using the reciprocal method, and determine
the total costs of Fabrication, Assembly, and...
MANAGERIAL ACCOUTING 1. Overhead costs actually incurred in production are recorded in such a way to:...
MANAGERIAL
ACCOUTING
1. Overhead costs actually incurred
in production are recorded in such a way to:
A. Increase
Work-in-process
B. Decrease
Work-in-process
c. Increase Manufacturing Overhead
d. Decrease Manufacturing Overhead
2. A product, which cost $100 in
manufacturing, has been sold for $120 for cash. For this
transaction,
which of the following is a correct accounting treatment?
A. Increase Cost of goods sold by $120
B. Decrease Sales
revenue by $120
C. Decrease Finished
goods by $100
d....
Question 2 (20 marks) In a given period the production data and costs for a process...
Question 2
In a given period the production data and costs for a process
were:
Production: 2100 units fully complete.
700 units partly complete.
The degree of completion of the partly complete units was:
Material 80% complete
Labour 60% complete
Overheads 50% complete
The costs for the period were:
Material P24 800
Labour P16 750
Overheads P36 200
Required:
(a) Calculate the total equivalent production units
(b) Calculate the cost per complete unit
(c) Determine the value of W-I-P
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe an action a regulatory agency took against a business in the past 6 months. Post...
- This is all in Python. Also, the names come from a .txt file that i have...
- The Gallup Poll asked a probability sample of 2500 U.S. adults whether they used a credit...
- benzene has commonly been used as an industrial intermediate, but its use has a declined in...
- 77. Calculate Q for a stream with weeds in the channel (n = 0.035). It has...
- What role does nucleation and kinetics in general have for making a single crystal silicon wafer?...
- Lesley is the purchasing manager for an organic food restaurant with a banquet room. She needs...
ADVERTISEMENT