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 2 years agoRelated Solutions
Timbuk 3 Company has the following information for March: Cost of direct materials used in production $21,000 Direct labor 54,250
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Jasper Enterprises had the following cost and production information for April: Units Produced 20,000 Units Sold...
Jasper Enterprises had the following cost and production
information for April:
Units Produced
20,000
Units Sold
17,000
Unit Sales Price
$200
Manufacturing Cost Per Unit
Direct Material
$50
Direct Labor
$25
Variable Manufacturing Overhead
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Fixed Manufacturing Overhead
($400,000/20,000) =
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Full Manufacturing Cost Per Unit
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Fixed General and Administrative Costs
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$315,000
$400,000
$60,000
$340,000
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Use
the following data to find the total direct labor cost variance if
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Actual hours worked
12,300
Actual rate per hour
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Which of the following is not a direct measure of productivity: Input/Time Units produced / Labor...
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Input/Time
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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
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)
Pink Tartan Inc. has 1,000,000 shares outstanding currently
selling in the market for $10. The firm is evaluating a...
Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones:...
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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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The following data relate to labor cost for production of 5,800
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Standard:
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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.
Rate variance
$
Time variance
$
Total direct labor cost variance
$
b. The...
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The following data relate to labor cost for production of 5,000
cellular telephones:
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Standard:
3,310 hrs. at $16.4
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.
Rate variance
$
Time variance
$
Total direct labor cost variance
$
b. The...
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The following data relate to labor cost for production of 5,700
cellular telephones:
Actual:
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Standard:
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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.
Rate variance
$
Favorable
Time variance
$
Unfavorable
Total direct labor cost variance
$
Favorable
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