Question

^{I need final answers without EXPLINATIONS}

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $914. Selected data for the company’s operations last year follow:

Units in beginning inventory		0
Units produced		19,000
Units sold		15,000
Units in ending inventory		4,000
Variable costs per unit:
Direct materials	$	270
Direct labor	$	410
Variable manufacturing overhead	$	62
Variable selling and administrative	$	20
Fixed costs:
Fixed manufacturing overhead	$	800,000
Fixed selling and administrative	$	780,000

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

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Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:

Cost of clay used in production	$ 67,000
Wages paid to the workers who paint the figurines	$ 82,000
Wages paid to the sales manager's secretary	$ 34,000
Cost of junk mail advertising	$ 51,000

What is the total of the product costs above?

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Bristo Corporation has sales of 1,000 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $26,000, the degree of operating leverage is:

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Dake Corporation's relevant range of activity is 3,000 units to 5,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$ 6.45
Direct labor	$ 3.60
Variable manufacturing overhead	$ 2.05
Fixed manufacturing overhead	$ 2.60
Fixed selling expense	$ 0.95
Fixed administrative expense	$ 0.65
Sales commissions	$ 0.75
Variable administrative expense	$ 0.65

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

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Perteet Corporation's relevant range of activity is 5,700 units to 11,500 units. When it produces and sells 8,600 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$7.00
Direct labor	$3.55
Variable manufacturing overhead	$1.50
Fixed manufacturing overhead	$2.50
Fixed selling expense	$0.85
Fixed administrative expense	$0.55
Sales commissions	$0.65
Variable administrative expense	$0.70

If 5,800 units are produced, the total amount of manufacturing overhead cost is closest to:

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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,360 and variable expenses of $5,808. Product Y45E had sales of $17,600 and variable expenses of $7,920. The fixed expenses of the entire company were $17,600. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company:

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Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:

Cost of clay used in production	$ 66,000
Wages paid to the workers who paint the figurines	$ 94,000
Wages paid to the sales manager's secretary	$ 26,000
Cost of junk mail advertising	$ 43,000

What is the total of the direct costs above?

Answer 1

Question of Ida Company

Particulars	Absorption Costing	Variable Costing
Direct Material Cost per Unit	270	270
Add: Direct Labour Cost per Unit	410	410
Add: Variable Manufacturing Overhead per Unit	62	62
Add: Fixed Manufacturing Overhead per Unit	42.11	-
Unit Product Cost	784.11	742

Fixed Manufacturing Overhead per Unit = Fixed Manufacturing Overhead / Units Produced

= 800,000 / 19,000

= $ 32.11 per Unit

Question of Vignana Company

Particulars	Amount
Cost of Clay used in Production	67,000
Add: Wages paid for Paint of Figurines	82,000
Total Product Cost	149,000

Question of Bristo Company

Particulars	Amount
Contribution Margin	36,000
÷ Operating Income	10,000
Degree of Operating Leverage	3.6 Times

Contribution Margin per Unit = Units Sold * Contribution Margin per Unit

= 1,000 Units * $ 36 per Unit = $ 36,000

Contribution Margin per Unit = Sales Price per Unit - Variable Expenses per Unit

= 60 - 24 = $ 36 per Unit

Operating Income = Contribution Margin - Fixed Costs

= 36,000 - 26,000

= 10,000

Question of Dake Corporation

Particular	Amount
Variable Manufacturing Overhead per Unit	2.05
* Units Produced	3,000
Variable Manufacturing Overhead	6,150

Particulars	Amount
Variable Manufacturing Overhead	6,150
Add: Fixed Manufacturing Overhead	10,400
Total Indirect Manufacturing Costs	16,550

Fixed Manufacturing Overhead = 4,000 Units * Fixed Manufacturing Overhead per Unit

= 4,000 * $ 2.6 per Unit

= $ 10,400

Question of Pertteet

Particular	Amount
Variable Manufacturing Overhead per Unit	1.50
* Units Produced	5,800
Variable Manufacturing Overhead	8,700

Particulars	Amount
Variable Manufacturing Overhead	8,700
Add: Fixed Manufacturing Overhead	21,500
Total Indirect Manufacturing Costs	30,200

Fixed Manufacturing Overhead = 8,600 Units * Fixed Manufacturing Overhead per Unit

= 8,600 * $ 2.50 per Unit

= $ 21,500

Question of Flesch Corporation

Particulars	C90B	Y45E
Contribution Margin	13,552	9,680
÷ Total Sales	19,360	17,600
Contribution Margin Ratio %	70%	55%

Overall Break Even Point wil.decrease in shifting towards Product C90B as it is having Higher Contribution Margin Ratio.

Particulars	C90B	Y45E
Total Sales	19,360	17,600
Less; Variable Expenses	5,808	7,920
Contribution Margin	13,552	9,680

Question of Viagana Company

Particulars	Amount
Cost of Clay used in Production	66,000
Add: Wages paid for Paint of Figurines	94,000
Total Direct Cost	160,000