Question
In: Accounting
Nelson Co. manufactures a product that required 3.5 machine hours per unit. The variable and fixed...
Nelson Co. manufactures a product that required 3.5 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 144,000 units (produced evenly throughout the year) and expected variable and fixed overhead cost, respectively, of $2,016,000 and $3,528,000. In October, Nelson manufactured 11,900 units using 41,800 machine hours. October variable overhead costs were $165,000; fixed overhead costs were $294,500.
a. What are the standard variable and fixed overhead rates?
b. Compute the variable overhead variances
c. Compute the fixed overhead variances
d. Explain the volume variance computed in (c).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $9 and fixed cost per period is $1680.
A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $9 and fixed cost per period is $1680.Capacity per period is 1800 units.(a) Develop an algebraic statement for the revenue function and
the cost function.(b) Determine the number of units required to be sold to break
even.(c) Compute the break-even point as a percent of capacity.(d) Compute the break-even point in sales dollars.(a) The revenue function isTR=nothing.
Wang Co. manufactures and sells a single product that sells for $600 per unit; variable costs...
Wang Co. manufactures and sells a single product that sells for
$600 per unit; variable costs are $324 per unit. Annual fixed costs
are $984,400. Current sales volume is $4,340,000. Compute the
break-even point in dollars.
Multiple Choice
$1,826,001.
$2,061,248.
$4,343,038.
$3,045,648.
$2,140,000.
Kent Co. manufactures a product that sells for $63.00. Fixed
costs are $396,000 and variable costs are $30.00 per unit. Kent can
buy a new production machine that will increase fixed costs by
$19,800 per year, but...
1. Wang Co. manufactures and sells a single product that sells for $600 per unit; variable...
1. Wang Co. manufactures and sells a single product that sells
for $600 per unit; variable costs are $324. Annual fixed costs are
$984,400. Current sales volume is $4,340,000. Compute the
break-even point in units.
Multiple Choice:
A. 4,697.
B.1,641.
C.3,567.
D.3,038.
E.528.
2. Wang Co. manufactures and sells a single product that sells
for $400 per unit; variable costs are $232 per unit. Annual fixed
costs are $844,200. Current sales volume is $4,210,000. Management
targets an annual pre-tax income...
A product sells for $5 per unit. The variable cost of production is $3 per unit. Total fixed...
A product sells for $5 per unit. The variable cost of
production is $3 per unit. Total fixed costs per year
are $1000, including depreciation expense of $200. What is the cash
flow breakeven point in units and in dollars?
A.
400 units and $2000.
B.
267 units and $1333.
C.
500 units and $2500.
D.
333 units and $1665.
Turquoise manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing...
Turquoise manufactures a single product; the standard costs per
unit being variable manufacturing $8, fixed manufacturing $6.
Selling and administrative costs are $2 per unit sold. The selling
price is $20 per unit. Actual and budgeted overhead are the same
for the year. Information about the company production activity for
the year is: Sales 125,000 units Units produced 150,000 units
Beginning Inventory 5,000 units As part of the company cost
planning and cost control of operations and activities, management
is...
Turquoise manufactures a single product; the standard costs per unit being variable manufacturing $8, fixed manufacturing...
Turquoise manufactures a single product; the standard costs per
unit being variable manufacturing $8, fixed manufacturing $6.
Selling and administrative costs are $2 per unit sold. The selling
price is $20 per unit. Actual and budgeted overhead are the same
for the year. Information about the company production activity for
the year is:
Sales 125,000
units
Units
produced 150,000
units
Beginning Inventory 5,000
units
As part of the company cost planning and cost control of
operations and activities, management is now reviewing its...
The Sirap Co. sells a product for $75 per unit. The variable cost is $45 per...
The Sirap Co. sells a product for $75 per unit. The
variable cost is $45 per unit.The fixed costs are
$48000. Required: Find the Break - Even point in Sales
Units and in Dollars.
The Sirap Co. has sales of $550,000 and the Break -
Even point in sales dollars is $385,000. Determine the company's
margin of safety in sales dollars and as a percent of current
sales
Question B change the sales price to $15 per unit. Now
also...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Variable Direct Costs Machine Hours Fixed Production Costs Fixed Overhead Costs Units Sold Unit Selling price...
Variable Direct Costs
Machine Hours
Fixed Production Costs
Fixed Overhead Costs
Units Sold
Unit Selling price
Machine Hours per
Unit
Total Sales Dollars
Variable Cost per
Unit
Total Contribution
Dollars
Contribution Dollars per
Unit
Contribution Margin
Percentage
Item #1
$65,000
10000
$25,000
$2,000
22500
$10
Item #2
$55,000
20000
$22,000
$2,500
23000
$8
Item #3
$42,000
7500
$15,000
$1,750
27500
$7
Item #4
$27,000
5000
$5,000
$500
11000
$6
Complete the grey cells in the
above table
Which product
would...
Kent Co. manufactures a product that sells for $52.00. Fixed costs are $270,000 and variable costs...
Kent Co. manufactures a product that sells for $52.00. Fixed
costs are $270,000 and variable costs are $25.00 per unit. Kent can
buy a new production machine that will increase fixed costs by
$12,000 per year, but will decrease variable costs by $3.00 per
unit. What effect would the purchase of the new machine have on
Kent's break-even point in units?
600 unit decrease
5,678 unit increase
No effect on the break-even point in units
6,442 unit decrease
600 unit...
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