13).Sales is $90 per unit; cost of goods sold is $30 per unit; selling and administrative...

13).Sales is $90 per unit; cost of goods sold is $30 per unit; selling and administrative expenses are $4 per unit and $25,000 per month. The company produced 500 units. Gross margin equals:

a).$30,000 b).$45,000 c).$28,000 d).$3,000

14).Estimates: 30,000 labor hours; 1,400 machine hours; $40,000 fixed overhead; $3 variable overhead per labor hour; $4 variable overhead per machine hour. Total estimated overhead is:

a).$135,600 b).$164,200 c).$95,600 d).$130,000

15).Sarah's Soda applies overhead based on departmental overhead rates. Job A1 had $3,900 direct material $1,200 direct labor 30 labor hours bottling 60 machine hours mixing. Overhead rates $9 labor hour bottling $15 machine hour mixing. The job consists of 100 units. What is the cost per unit for job A1?

a).$62.70 b).$51.00 c).$60.00 d).$53.70

Solutions

Expert Solution

13) Gross margin = Sales-Cost of goods sold = (90-30)*500 = 30000

So answer is a) $30000

14) Total estimated overhead = (30000*3+1400*4)+40000 = 135600

So answer is a) $135600

15) Total Cost = 3900+1200+(30*9+15*60)/100 = 62.70

So answer is a) $62.70

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Raines Umbrella Corp. had sales of $608,674. Cost of goods sold, administrative and selling expenses, and...

Raines Umbrella Corp. had sales of $608,674. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $547,602, $89,764, and $80,449, respectively. In addition, the company had an interest expense of $85,353 and a tax rate of 31 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) Suppose Raines Umbrella Corp. paid out $52,441 in cash dividends. If spending on...

During 2009, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...

During 2009, Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $574,000, $89,000, and $128,000, respectively. In addition, the company had an interest expense of $100,000 and a tax rate of 30 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $19,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2015, Rainbow Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling...

During 2015, Rainbow Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. In addition, the company had an interest expense of $89,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Suppose the company paid out $53,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2019, Rainbow Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...

During 2019, Rainbow Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $540,000, $85,000, and $100,000, respectively. In addition, the company had an interest expense of $54,000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) Suppose the company paid out $66,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year,...

During 2018, Raines Umbrella Corp. had sales of $745,000. Cost of goods sold, administrative and selling...

During 2018, Raines Umbrella Corp. had sales of $745,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $578,000, $87,000, and $134,000, respectively. In addition, the company had an interest expense of $102,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Assume Raines Umbrella Corp. paid out $24,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued...

During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling...

During 2018, Raines Umbrella Corp. had sales of $739,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $454,000, $99,000, and $144,500, respectively. In addition, the company had an interest expense of $72,200 and a tax rate of 24 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible.) a. What is the company’s net income/loss for 2018? (Do not round intermediate calculations. Enter your answer as a positive value.) b....

During 2019, Rainbow Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and selling...

During 2014, Raines Umbrella Corp. had sales of $666924. Cost of goods sold, administrative and selling...

During 2014, Raines Umbrella Corp. had sales of $666924. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $478699, $91112, and $84397, respectively. In addition, the company had an interest expense of $91184 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) Suppose Raines Umbrella Corp. paid out $51718 in cash dividends. If...

During 2019,Rainbow Umbrella Corp. had sales of $860,000. Cost of goods sold, administrative and selling expenses,...

During 2019,Rainbow Umbrella Corp. had sales of $860,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $680,000, $85,000, and $180,000, respectively. In addition, the company had an interest expense of $55,000 and a tax rate of 21 percent. (Assume that interest is fully deductible.) Suppose the company paid out $65,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what...

Sales (16,000 units × $211 per unit) $ 3,376,000 Cost of goods sold Direct materials $...

Sales (16,000 units × $211 per unit) $ 3,376,000 Cost of goods sold Direct materials $ 400,000 Direct labor 688,000 Production supplies 448,000 Plant manager salary 200,000 1,736,000 Gross profit 1,640,000 Selling expenses Sales commissions 128,000 Packaging 256,000 Advertising 100,000 484,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 296,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations...

Subjects