Question
In: Accounting
Martin Mfg produces 1000 lens per month. The following per unit data apply for sales. Direct...
Martin Mfg produces 1000 lens per month. The following per unit data apply for sales.
Direct materials$400; Direct labor$25; Variable overhead $50 and Fixed overhead $60.
The plant has capacity for 1500 lens.
Solve:
(a)What is the total cost of producing 1000 lens?
(b) What is the total cost of producing 1200 lens and
(c) What is the per unit cost of producing 1200 lens? (Budgeted overhead is $90,000).
Solutions
Expert Solution
| a) | Total cost of producing 1000 lens: | |
| Direct materials = 1000*400 = | $ 4,00,000 | |
| Direct labor = 1000*25 = | $ 25,000 | |
| Variable overhead = 1000*50 = | $ 50,000 | |
| Fixed overhead | $ 90,000 | |
| Total cost of producing 1000 lens | $ 5,65,000 | |
| b) | Total cost of producing 1200 lens: | |
| Direct materials = 1200*400 = | $ 4,80,000 | |
| Direct labor = 1200*25 = | $ 30,000 | |
| Variable overhead = 1200*50 = | $ 60,000 | |
| Fixed overhead | $ 90,000 | |
| Total cost of producing 1200 lens | $ 6,60,000 | |
| c) | Per unit cost of producting 1200 lens = 660000/1200 = | $ 550 |
ekkarill92 answered 2 years agoRelated Solutions
The following data apply to the provision of psychological testing services: Sales price per unit...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)$300
Fixed costs (per month):
Selling and administration 20,000
Production overhead (e.g., rent of testing facilities)
17,500
Variable costs (per test):
Labor for oversight and feedback 165
Outsourced test analysis 17
Materials used in testing 7
Production overhead 12
Selling and administration (e.g., scheduling and billing) 14
Number of tests per month 2,000tests
Required:
Calculate the...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)
$
320
Fixed costs (per month):
Selling and administration
16,000
Production overhead (e.g., rent of testing facilities)
20,000
Variable costs (per test):
Labor for oversight and feedback
160
Outsourced test analysis
19
Materials used in testing
6
Production overhead
15
Selling and administration (e.g., scheduling and billing)
16
Number of tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)
$
330
Fixed costs (per month):
Selling and administration
20,000
Production overhead (e.g., rent of testing facilities)
20,000
Variable costs (per test):
Labor for oversight and feedback
170
Outsourced test analysis
21
Materials used in testing
5
Production overhead
15
Selling and administration (e.g., scheduling and billing)
17
Number of tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1
test plus feedback to client)
$
320
Fixed costs (per month):
Selling and administration
18,000
Production overhead (e.g., rent
of testing facilities)
22,500
Variable costs (per test):
Labor for oversight and
feedback
165
Outsourced test analysis
19
Materials used in testing
7
Production overhead
9
Selling and administration
(e.g., scheduling and billing)
14
Number of tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological testing
services:
Sales price
per unit (1 unit = 1 test plus feedback to client)
$
340
Fixed costs
(per month):
Selling and
administration
16,000
Production
overhead (e.g., rent of testing facilities)
25,000
Variable costs
(per test):
Labor for
oversight and feedback
145
Outsourced
test analysis
15
Materials used
in testing
6
Production
overhead
11
Selling and
administration (e.g., scheduling and billing)
20
Number of
tests per month
2,000
tests
Required:...
4).Sales is $100 per unit; direct material is $25 per unit; direct labor is $15 per...
4).Sales is $100 per unit; direct material is $25 per unit;
direct labor is $15 per unit, overhead is $10 per unit and $20,000
per month; selling and administrative expenses are $5 per unit and
$10,000 per month. The company produced 900 units. Gross
margin equals:
a).$25,000 b).$40,500 c).$90,000 d).$10,500
5).Sales is $100 per unit; direct material is $25 per unit;
direct labor is $15 per unit, overhead is $10 per unit and $20,000
per month; selling and administrative expenses...
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials...
Standard Direct Materials Cost per Unit from Variance Data
The following data relating to direct materials cost for October
of the current year are taken from the records of Good Clean Fun
Inc., a manufacturer of organic toys:
Quantity of direct materials used
6,300 lbs.
Actual unit price of direct materials
$3.9 per lb.
Units of finished product manufactured
1,515 units
Standard direct materials per unit of finished product
4 lbs.
Direct materials quantity variance—unfavorable
$960
Direct materials price variance—favorable...
Compute the cost per equivalent unit for direct materials and conversion for the month.
Perrette Motor Company rebuilds automobile engines that have
been damaged or are in need of extensive repair. The rebuilt engine
has a 100,000-mile warranty and is purchased by auto shops, large
motor pools in companies and governmental units, and some
individual auto owners. The plant in Dayton, Ohio, specializes in
the Ford V6 engine. Approximately 1,140 to 1,340 engines are
rebuilt each month, and the costs of the plant are assigned to
monthly production using weighted-average process costing. The
current...
Air Corporation produces air purifiers. The following per unit cost information is available: direct...
Air Corporation produces air purifiers. The following per unit
cost information is available: direct materials $16, direct
labor $18, variable manufacturing overhead $11, variable
selling and administrative expenses $6. Fixed selling and
administrative expenses are $50,000, and fixed manufacturing
overhead is $150,000 per year. Using a 45% markup percentage on
total per unit cost and assuming 10,000 units, compute the target
selling price.
Data Selling price per unit $50 Manufacturing costs: Variable per unit produced: Direct materials $11 Direct...
Data
Selling price per unit
$50
Manufacturing costs:
Variable per unit produced:
Direct materials
$11
Direct labor
$6
Variable manufacturing overhead
$3
Fixed manufacturing overhead per year
$120,000
Selling and administrative expenses:
Variable per unit sold
$4
Fixed per year
$70,000
Year 1
Year 2
Units in beginning inventory
0
Units produced during the year
10,000
6,000
Units sold during the year
8,000
8,000
Enter a formula into each of the cells marked with a ?
below
Review Problem 1:...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
ADVERTISEMENT