Question
In: Accounting
Wisconsin Electronics has received an order for 1,000 specially designed TV/VCR combinations. The following standards were...
Wisconsin Electronics has received an order for 1,000 specially designed TV/VCR combinations. The following standards were compiled for this order: Direct materials: Part #123 $25 per TV/VCR Part #456 $50 per TV/VCR Direct labor: 2.0 hours per TV/VCR at $15 per hour Manufacturing overhead: $40 per direct labor hour Assume the company adds a 10% markup to arrive at a selling price. The bid price for this order totals: A. $203,500. B. $115,500. C. $185,000. D. $80,000.
Solutions
Expert Solution
All Workings form part of the answer
-Working and Answer
| Costs | Workings | Amount |
| Direct Material: | ||
| Part #123 | [1000 TV/VCRs x $ 25] | $ 25,000.00 |
| Part #456 | [1000 TV/VCRs x $ 50] | $ 50,000.00 |
| Direct Labor | ]2 hours x 1000 TV/VCR x $ 15 per hour] | $ 30,000.00 |
| Manufacturing Overhead | [$ 40 x 2 hours x 1000 TV/VCR] | $ 80,000.00 |
| Total Cost assigned | $ 185,000.00 | |
| Mark Up of 10% | $ 18,500.00 | |
| Bid Price for Order | $ 203,500.00 | |
| CORRECT ANSWER | Option 'A': $ 203,500 | |
ekkarill92 answered 8 months agoRelated Solutions
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and
sell specially designed computer tables, using select hardwoods.
The division’s monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct
materials
$
192
Variable
manufacturing overhead
$
19
Fixed manufacturing overhead
costs (total)
$
500,850
Selling and administrative costs:
Variable
15
% of sales
Fixed (total)
$
343,440
Zurgot regards all of its workers as full-time employees, and
the company has a long-standing...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and
sell specially designed computer tables, using select hardwoods.
The division’s monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct
materials
$
192
Variable
manufacturing overhead
$
17
Fixed manufacturing overhead
costs (total)
$
561,105
Selling and administrative costs:
Variable
15
% of sales
Fixed (total)
$
272,970
Zurgot regards all of its workers as full-time employees, and
the company has a long-standing...
Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables,...
Zurgot Inc. has just organized a new division to manufacture and
sell specially designed computer tables, using select hardwoods.
The division’s monthly costs are shown in the schedule below:
Manufacturing costs:
Variable costs per unit:
Direct
materials
$
192
Variable
manufacturing overhead
$
17
Fixed manufacturing overhead
costs (total)
$
561,105
Selling and administrative costs:
Variable
15
% of sales
Fixed (total)
$
272,970
Zurgot regards all of its workers as full-time employees, and
the company has a long-standing...
Yummy food received an advance payment of OMR 1,000 for the order to be delivered after...
Yummy food received an advance payment of OMR 1,000
for the order to be delivered after two months. Write a short note
on unearned income/ income received in advance with a literature
review and by providing examples.?
Franklin Sports received a special order for 1,000 units of its bicycles at a selling price...
Franklin Sports received a special order for 1,000 units of its
bicycles at a selling price of $250 per bike. Franklin has enough
extra capacity to accept the order. No additional selling costs
will be incurred. Unit costs to make and sell this product are as
follows: direct materials, $100; direct labor, $70; variable
manufacturing overhead, $10; fixed manufacturing overhead, $15, and
variable selling costs, $3. A special machine would have to be
purchased for $5,000 to fulfill this order....
An electronics store has received a shipment of 30 table radios that have connections for an...
An electronics store has received a shipment of 30 table radios
that have connections for an iPod or iPhone. Twelve of these have
two slots (so they can accommodate both devices), and the other
eighteen have a single slot. Suppose that eight of the 30 radios
are randomly selected to be stored under a shelf where the radios
are displayed, and the remaining ones are placed in a storeroom.
Let X = the number among the radios stored under the...
Wolverine Inc. had the following standards for their production of a specialty desk designed to work...
Wolverine Inc. had the following standards for their production
of a specialty desk designed to work with laptops, tablets and
smartphones. The standards are based on 500,000 labor hours.
Materials:6 lbs. @ $5 per lb.Labor: 10 hrs.@ $7 per hr.Fixed
OH:$500,000Variable OH:$5 per DL hr
Fixed OH was calculated based on an estimated production level
of 250,000 hours.
During the month of March, the following occurred:
Production:30,000
Materials Purchased:200,000 lbs @ $5.15 per lb.
Materials Used160,000 lbs
Direct Labor320,000 hrs...
The Evangelical Private School follows FASB standards of accounting and reporting. 1. Cash contributions were received...
The Evangelical Private School follows FASB standards of
accounting and reporting.
1. Cash contributions were received as follows: (a)
$1,113,000 for any purpose desired by the school, (b)
$305,000 for salary supplements for school faculty, (c)
$421,000 to be used during the next fiscal year in any manner
desired by the school, (d) $610,000 for the construction
of a new auditorium, and (e) $408,000 to be invested
permanently, with the income to be used as desired by the school.
The...
Bob’s TV Company budgeted the following cost standards for the current year: Direct materials = 1.40...
Bob’s TV Company budgeted the following cost standards for the
current year:
Direct materials = 1.40 pounds per
unit @ $1.50 per pound
Direct labor = 0.75 hours per unit @
$6 per hour
Actual production and costs were as follows:
Units produced = 2,800
Direct materials used = 4,500 lbs.
Direct materials purchased = 5,000
lbs. @ a cost of $5,850
Direct labor incurred = 2,000 hours at
a cost of $13,000
a) The material price variance for materials
purchased...
"A manufacturing company has just received an order with the following financial data. All dollar values...
"A manufacturing company has just received an order with the
following financial data. All dollar values are given in constant
dollars, and inflation will impact the annual revenue, annual
operating cost, and the salvage value. The two-year project
requires immediately purchasing equipment for $59,000. The
equipment falls into the MACRS 5-year class. The machine will be
sold for $19,000 at the end of two years. The project will bring in
additional annual revenue of $99,000, but it is expected to...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1) Consider two products A and B that have identical cost, retail price and demand parameters...
- Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed...
- Explain the concepts of civil liberties and civil rights. Are they the same or different? Be...
- Case Study: Joseph desired to use an internet domain addressfor his project management services business, and...
- Tom owns 22 hotdog stands. Tom earned $10,000 last year from the hotdog stands business. For...
- Discuss the difference between deontological ethical theories and consequentialist ethical theories? How would a deontological theorist...
- HUMAN RESOURCE MANAGEMENT Discussion- Discuss the activities your company has undertaken to create an established level...
ADVERTISEMENT