In: Accounting
13 A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
Selling price |
$149 |
Units in beginning inventory |
0 |
Units produced |
2,770 |
Units sold |
2,520 |
Units in ending inventory |
250 |
Variable costs per unit: |
|
Direct materials |
$51 |
Direct labor |
$20 |
Variable manufacturing overhead |
$10 |
Variable selling and administrative |
$12 |
Fixed costs: |
|
Fixed manufacturing overhead |
$96,950 |
Fixed selling and administrative expenses |
$35,280 |
The total gross margin for the month under absorption costing is: |
$83,160
$17,640
$130,320
$141,120
14 A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
Units in beginning inventory |
0 |
Units produced |
4,750 |
Units sold |
4,650 |
Units in ending inventory |
100 |
Variable costs per unit:
Direct materials |
$ |
56 |
Direct labor |
$ |
58 |
Variable manufacturing overhead |
$ |
21 |
Variable selling and administrative |
$ |
19 |
Fixed costs:
Fixed manufacturing overhead |
$ |
99,750 |
Fixed selling and administrative |
$ |
46,500 |
What is the variable costing unit product cost for the month?
$154 per unit
$175 per unit
$135 per unit
$141 per unit
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15 Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations: |
Number of units produced |
4,600 |
Variable costs per unit: |
|
Direct materials |
$108 |
Direct labor |
$105 |
Variable manufacturing overhead |
$5 |
Variable selling and administrative expense |
$12 |
Fixed costs: |
|
Fixed manufacturing overhead |
$184,000 |
Fixed selling and administrative expense |
$322,000 |
There were no beginning or ending inventories. The absorption costing unit product cost was: |
$213 per unit
$258 per unit
$218 per unit
$340 per unit
16 Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.09 direct labor-hours. The direct labor rate is $8.50 per direct labor-hour. The production budget calls for producing 5,600 units in June and 6,100 units in July. |
Required: |
||||||||||||||||||
Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)
|
13) Solution : The correct option is the 1st option i.e $ 83160( see working note below)
Working Note:: Absorption Costing Income Statement
Particulars |
Cost ( $ ) |
Cost ( $ ) |
Sales revenue ($149* 2520 units) |
$ 3,75,480 |
|
Cost Of Sales |
||
Opening inventory ( $ 116* o units) |
$ o |
|
Add : Production cost ($116* 2770 units) |
$ 321320 |
|
Less: Closing inventory ($ 116* 250 units) |
($ 29000) |
$ 2,92,320 |
Gross Margin |
$ 83,160 |
|
14) Solution: The correct option is the 3rd option i.e $ 135 per unit( see working note below)
Working Note:
Computation of unit product cost( VARIABLE COSTING)
Particulars |
Cost per unit( $ ) |
Direct Material |
$56 |
Direct Labour |
$ 58 |
Variable Manufacturing Overhead |
$ 21 |
Unit Product Cost |
$ 135 |
15) Solution: The correct option is the 2nd option i.e $ 258 per unit( see working note below)
Working Note:
Computation of unit product cost (ABSORPTION COSTING)
Particulars |
Cost per unit( $ ) |
Direct Material |
$ 108 |
Direct Labour |
$ 105 |
Variable Manufacturing Overhead |
$ 5 |
Fixed Manufacturing Overhead($184000/4600) |
$ 40 |
Unit Product Cost |
$ 258 |