Question
In: Accounting
Shore Company reports the following information regarding its production cost. Units produced 31,000 units Direct labor...
Shore Company reports the following information regarding its
production cost.
| Units produced | 31,000 | units | |
| Direct labor | $ | 26 | per unit |
| Direct materials | $ | 27 | per unit |
| Variable overhead | $ | 283,000 | in total |
| Fixed overhead | $ | 97,920 | in total |
Compute product cost per unit under absorption costing.
Multiple Choice
$62.00
$65.29
$53.00
$26.00
$27.00
Solutions
Expert Solution
| Computation of Unit Product Cost | |
| Absorption Costing | |
| Direct Meterial | $ 27.00 |
| Direct Labour | $ 26.00 |
| Variable Manufactoring Overhead ($283,000/31,000) | $ 9.13 |
| Fixed Manufactoring Overhead (97,920/31,000) | $ 3.16 |
| Unit Product Cost | $ 65.29 |
Product cost per unit under absorption costing = $65.29
ekkarill92 answered 1 year agoRelated Solutions
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Jasper Enterprises had the following cost and production
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20,000
Units Sold
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Direct Material
$50
Direct Labor
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Fixed Manufacturing Overhead
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$400,000
$60,000
$340,000
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Use
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Actual rate per hour
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Consider the following information regarding Pink Tartan
Inc.
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produced
1,000,000
Total fixed
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$250,000
Per unit variable
cost
$0.32
Interest on outstanding
debt
$400,000
Per unit selling
price
$3.80
Tax rate = 46%
Pink Tartan Inc. has 1,000,000 shares outstanding currently
selling in the market for $10. The firm is evaluating a new project
that would require an initial investment of $2,400,000.
To raise the additional $2,400,000,
the firm is considering two alternatives: (6)
Debt: sell $2,400,000...
Consider the following information regarding Pink Tartan Inc. Number of units produced 1,000,000 Total fixed cost &nb
Consider the following information regarding Pink Tartan
Inc.
Number of units
produced
1,000,000
Total fixed
cost
$250,000
Per unit variable
cost
$0.32
Interest on outstanding
debt
$400,000
Per unit selling
price
$3.80
Calculate the DOL, DFL, and DCL for Pink Tartan Inc. (4)
If the firm would like to double their EBIT, what percentage
increase in sales would be needed? (3)
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for production of 5,300 cellular telephones: Actual: 3,560 hrs. at
$13 Standard: 3,500 hrs. at $13.3 a. Determine the direct labor
rate variance, direct labor time variance, and total direct labor
cost variance. Enter a favorable variance as a negative number
using a minus sign and an unfavorable variance as a positive
number.
The employees may have been less-experienced or poorly trained,
thereby resulting in a (higher/lower) labor rate than...
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Enter a favorable variance as a negative number using a minus sign
and an unfavorable variance as a positive number.
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$
Time variance
$
Total direct labor cost variance
$
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Standard:
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a. Determine the direct labor rate variance,
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Enter a favorable variance as a negative number using a minus sign
and an unfavorable variance as a positive number.
Rate variance
$
Time variance
$
Total direct labor cost variance
$
b. The...
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Actual:
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Standard:
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a. Determine the direct labor rate variance,
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Enter a favorable variance as a negative number using a minus sign
and an unfavorable variance as a positive number.
Rate variance
$
Favorable
Time variance
$
Unfavorable
Total direct labor cost variance
$
Favorable
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