Question
In: Accounting
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead...
1. Identify at least one example of a manufacturing cost (direct labor, direct materials, or overhead costs) associated with value added activities a non-profit homeless shelter.. 2.Which one of these: direct labor, direct materials, or overhead costs are most prominent (make up more of a non-profit homeless shelters costs)? It is fine to conjecture on this answer. You may not have access to the data.
Solutions
Expert Solution
A value added activity is an activity which adds usefulness to the product or service being given or delivered to consumer. These are the activities, which if eliminated, will reduce the actual usefulness of the product or services so delivered to the consumers.
For a non-profit homeless shelter, considering direct material is a manufacturing cost which is incurred in association with the value added activity, direct material can be material used for construction like cement, bricks, sand etc. These all are direct materials used in construction and without using these shelter home cannot be build, and therefore its of no value for the one who is desiorous of building a Non profit homeless shelter.
Firstly, all the direct expenses form important part of the project to be completed in a particular manner. However, in the given case considering the non profit shelter homes, direct material and labor seems to be the most prominent which are used in the construction of shelter homes. Without material, nothing can be build, and without labor, material is not of any use. So, these two forms the most crucial part here.
ekkarill92 answered 8 months agoRelated Solutions
Case Prime Cost Conversion Cost Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Cost A 9,480...
Case
Prime Cost
Conversion Cost
Direct Materials
Direct Labor
Manufacturing Overhead
Total Manufacturing Cost
A
9,480
16,460
4,040
11,020
B
10,010
7,330
25,200
42,540
C
55,700
110,300
42,300
D
48,150
19,900
11,750
68,050
E
14,000
24,300
56,200
For each of the following independent cases (A–E),
compute the missing values in the table:
Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead,...
Compute the cost and efficiency variances for direct materials
and direct labor.
2.
For manufacturing overhead, compute the variable overhead cost
and efficiency variances and the fixed overhead cost and volume
variances.
3.
HeadsetHeadset's
management used better quality materials during September.
Discuss the trade-off between the two direct material
variances.
Standard Cost Information
Quantity
Cost
Direct Materials
2
parts
$0.15
per part
Direct Labor
0.02
hours
9.00
per hour
Variable Manufacturing Overhead
0.02
hours
11.00
per hour
Fixed Manufacturing Overhead...
Variable Cost Per Unit: Manufacturing: Direct Materials = $20 Direct Labor = $12 Variable Manufacturing Overhead...
Variable Cost Per Unit:
Manufacturing:
Direct Materials = $20
Direct Labor = $12
Variable Manufacturing Overhead = $4
Variable Selling and Administrative = $2
Fixed costs per year:
Fixed manufacturing overhead = $960,000
Fixed selling and administrative expenses = $240,000
During its first year of Operations, produced 60,000 units and
sold 60,000 units. During it's second year of operations, it
produced 75,000 and sold 50,000 units. In its third year, it
produced 40,000 units and sold 65,000 units. The selling...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost,
direct labor cost, and manufacturing overhead data for Morton’s two
divisions are available below. Note: All of Morton Company’s
products are sold in competitive markets.
Missile
Salt
Products Products
Sales
$1,500,000
$1,000,000
Direct
labor
(800,000)
(300,000)
Direct
materials
(100,000)
(40,000)
Manufacturing
overhead*
(400,000)
(150,000)
Gross
profit
$200,000
$510,000
*Manufacturing overhead is allocated to production based on the
amount of direct labor cost.
Morton has determined
that its total...
Morton Company has two divisions. Sales, direct materials cost, direct labor cost, and manufacturing overhead data...
Morton Company has two divisions. Sales, direct materials cost,
direct labor cost, and manufacturing overhead data for Morton’s two
divisions are available below. Note: All of Morton Company’s
products are sold in competitive markets.
Missile Salt
Products Products
Sales $1,500,000 $1,000,000
Direct labor (800,000) (300,000)
Direct materials (100,000) (40,000)
Manufacturing overhead* (400,000) (150,000)
Gross profit $200,000 $510,000
*Manufacturing overhead is allocated to production based on the
amount of direct labor cost. Morton has determined that its total
manufacturing overhead cost...
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard CostsActual CostsDirect materials251,600 lbs. at $5.40249,100 lbs. at $5.20Direct labor18,500 hrs. at $17.3018,930 hrs. at $17.70Factory overheadRates per direct labor hr.,based on 100% of normalcapacity of 19,310 directlabor hrs.:Variable cost, $4.80$87,910 variable costFixed cost, $7.60$146,756 fixed costEach unit...
Variable cost (per pound) Direct materials $3.75 Direct manufacturing labor 8.00 Variable overhead (manufacturing, marketing, distribution...
Variable cost (per pound)
Direct materials $3.75
Direct manufacturing labor 8.00
Variable overhead (manufacturing, marketing, distribution and
customer service) 2.05
Total variable cost per bowl $13.80
Fixes costs
Manufacturing $12,000
Marketing, distribution, and customer service 214,800
Total fixed cost $226,800
Selling price $30
Expected sales, 19,500 units $585,000
Income tax rate 40%
S.L. Brook and Company, a manufacturer of quality handmade
walnut bowls, has had a steady growth in sales for the past 5
years. However, increased competition has led...
The following cost information is available: Direct materials $420 Direct labor (variable) 110 Variable manufacturing overhead...
The following cost information is available:
Direct materials $420
Direct labor (variable) 110
Variable manufacturing overhead 80
Fixed manufacturing overhead 30
A supplier has offered to sell the component to CM for $650 per
unit. If 4-I buys the component from the supplier, the released
facilities can be used to manufacture a product that would generate
a contribution margin of $10,000 annually. Assuming that 4-I needs
4,000 components annually and that the fixed manufacturing overhead
is unavoidable, what would be...
Conversion costs are A. direct materials plus direct labor. B. direct materials plus manufacturing overhead. C....
Conversion costs are
A. direct materials plus direct labor.
B. direct materials plus manufacturing overhead.
C. indirect materials plus indirect labor.
D. direct labor plus manufacturing overhead.
Direct materials $ 8.50 Direct labor 11.00 Variable manufacturing overhead 2.30 Fixed manufacturing overhead 5.00 ($415,000...
Direct materials
$
8.50
Direct labor
11.00
Variable manufacturing overhead
2.30
Fixed manufacturing overhead
5.00
($415,000 total)
Variable selling expenses
4.70
Fixed selling expenses
3.00
($249,000 total)
Total cost per unit
$
34.50
A number of questions relating to the production and sale of
Daks follow. Each question is independent.
Required:
1-a. Assume that Andretti Company has sufficient capacity to
produce 116,200 Daks each year without any increase in fixed
manufacturing overhead costs. The company could increase its unit
sales...
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