Question
In: Accounting
Adams Company’s cost and production data for two recent months included the following: March April Production...
Adams Company’s cost and production data for two recent months included the following:
| March | April | |||||
| Production (units) | 300 | 600 | ||||
| Rent | $ | 1,700 | $ | 1,700 | ||
| Utilities | $ | 400 | $ | 800 | ||
Required
-
Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.
-
Identify which cost is variable and which is fixed.
Separately calculate the rental cost per unit and the utilities cost per unit for both March and April. (Round your answers to 2 decimal places.)
|
Identify which cost is variable and which is fixed.
|
Solutions
Expert Solution
| March | April | |||||||||
| Rent cost per unit | $ 5.67 | $ 2.83 | ||||||||
| Utility cost per unit | $ 1.33 | $ 1.33 | ||||||||
| Rent cost | Fixed cost | |||||||||
| Utility cost | Variable cost | |||||||||
| Workings: | ||||||||||
| March | April | |||||||||
| Rent | $ 1,700 | / | 300 | = | $ 5.67 | $ 1,700 | / | 600 | = | $ 2.83 |
| Utilities | $ 400 | / | 300 | = | $ 1.33 | $ 800 | / | 600 | = | $ 1.33 |
ekkarill92 answered 2 years agoRelated Solutions
The following represents the financial information for Domingo Corporation for two months. March April Sales revenue...
The following represents the financial information for Domingo
Corporation for two months.
March
April
Sales revenue
$
504,000
$
468,000
Costs
Process inspection
$
4,250
$
4,480
Scrap
2,500
2,580
Quality training
22,400
15,600
Warranty repairs
8,200
8,700
Product testing equipment
8,300
8,300
Customer complaints
4,750
5,350
Rework
18,300
25,000
Preventive maintenance
16,100
12,100
Materials inspection
9,100
7,400
Field testing
12,000
15,000
Required:
Construct a cost of quality report for March and April. (Input
all amounts as positive values. Round...
The following represents the financial information for Domingo Corporation for two months. March April Sales revenue...
The following represents the financial information for Domingo
Corporation for two months.
March
April
Sales revenue
$
480,000
$
430,000
Costs
Process inspection
$
1,650
$
1,850
Scrap
1,940
1,850
Quality training
20,300
12,300
Warranty repairs
4,400
5,000
Product testing equipment
6,600
7,300
Customer complaints
2,700
3,400
Rework
17,000
17,000
Preventive maintenance
14,700
8,800
Materials inspection
5,800
4,400
Field testing
9,400
14,300
Required:
a. Classify these items into Prevention, Appraisal, Internal
failure, or External failure costs.
b. Calculate the ratio...
The following represents the financial information for Domingo Corporation for two months. March April Sales revenue...
The following
represents the financial information for Domingo Corporation for
two months.
March
April
Sales
revenue
$
540,000
$
430,000
Costs
Process
inspection
$
1,500
$
1,840
Scrap
1,940
1,870
Quality
training
19,500
13,500
Warranty
repairs
4,200
5,100
Product testing
equipment
6,600
7,100
Customer
complaints
2,900
3,100
Rework
16,000
19,500
Preventive
maintenance
12,700
10,200
Materials
inspection
7,400
5,000
Field
testing
8,600
11,600
Required:
a.
Classify these items into Prevention, Appraisal, Internal failure,
or External failure costs.
The following
represents the...
The following is six months of data on the cost and production volume to manufacture crates...
The following is six months of data on the cost and production
volume to manufacture crates of skittles. In order to better
predict costs, the manager is trying to understand the relationship
between production volume and cost. Use the hi-lo method to
determine the cost equation. Round as needed to the closest
penny. (Please report the cost equation in y=mx+b
format).
Production Volume
Total Cost
July
265
$4,920
August
320
$5,210
September
745
$8,760
October
410
$6,020
November
530
$7,300
December...
9. What variable manufacturing overhead cost would be included in the company’s flexible budget for March?
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct material: 6 pounds at $8.00 per pound
$
48.00
Direct labor: 3 hours at $14 per hour
42.00
Variable overhead: 3 hours at $5 per hour
15.00
Total standard variable cost per unit
$
105.00
The company also established the following cost formulas for its selling...
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning...
Montreal Manufacturing Inc. has the following cost and
production data for the month of April.
Beginning WIP
16,000
units
Started in production
100,000
Completed production
90,000
Ending WIP
26,000
The beginning inventory was 60% complete for conversion costs. The
ending inventory was 40% complete for conversion costs. Materials
are added at the beginning of the process.
Costs pertaining to the month of April are as follows:
Beginning inventory costs are:
Materials
$63,000
Direct labour
18,000
Factory overhead...
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning...
Montreal Manufacturing Inc. has the following cost and
production data for the month of April.
Beginning WIP
17,100
units
Started in production
104,500
Completed production
91,300
Ending WIP
30,300
The beginning inventory was 60% complete for conversion costs. The
ending inventory was 40% complete for conversion costs. Materials
are added at the beginning of the process.
Costs pertaining to the month of April are as follows:
Beginning inventory costs are:
Materials
$66,100
Direct labour
19,500
Factory overhead...
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning...
Montreal Manufacturing Inc. has the following cost and
production data for the month of April.
Beginning WIP
20,000
units
Started in production
104,000
Completed production
94,300
Ending WIP
29,700
The beginning inventory was 60% complete for conversion costs. The
ending inventory was 40% complete for conversion costs. Materials
are added at the beginning of the process.
Costs pertaining to the month of April are as follows:
Beginning inventory costs are:
Materials
$64,100
Direct labour
20,500
Factory overhead...
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning...
Montreal Manufacturing Inc. has the following cost and
production data for the month of April.
Beginning WIP
17,900
units
Started in production
104,000
Completed production
91,600
Ending WIP
30,300
The beginning inventory was 60% complete for conversion costs.
The ending inventory was 40% complete for conversion costs.
Materials are added at the beginning of the process.
Costs pertaining to the month of April are as follows:
Beginning inventory costs are:
Materials
$64,100
Direct labour
20,900
Factory overhead...
Problem 3 Anderson, Inc. provides the following data for the April – July 2019: March April...
Problem 3
Anderson, Inc. provides the following data for the April – July
2019:
March
April
May
June
July
Budgeted production units
500
580
530
600
Ending Raw Materials Inventory
663 lbs.
Desired ending inventory:
Raw materials (pounds) = 30% of next month's
production needs
Pounds of raw material required for each finished Unit = 5 lbs
Raw material price = $8/lb
Direct labor hours per unit = 0.5 hrs
Direct labor rate = $12/hour
Required:
a. Prepare...
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