Milberg Co. uses absorption costing and standard costing to improve cost control.
In 2016, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the budget, Milberg expected a monthly activity level of 10,000 direct labour hours. The monthly variable overhead cost budgeted for this level of activity was $9,500.
The following data on actual results are provided for the month of November 2016.
|
Materials purchased |
20,000 units |
|
Direct labour costs incurred |
$36,000 |
|
Total of direct labour rate and efficiency variances |
$ 500 F |
|
Actual wage rate ($0.20 less than standard) |
$ 4.80 |
|
Underapplied variable overhead costs |
$ 1,065 U |
|
Total underapplied fixed and variable overhead costs |
$ 2,256 U |
|
Materials price variance |
$ 200 F |
|
Materials efficiency variance |
$ 610 F |
|
Price of purchased materials |
$ 0.60 per unit |
|
Materials used |
15,000 units |
Instructions
Identify and calculate as many different variances as you can for 2016.
(adapted from CGA-Canada, now CPA Canada)
LPV=$ 1500 F
In: Accounting
Kindly answer 2,3 and 4
2. Change the total fixed manufacturing overhead cost for the Milling Department in Data area back to $390,000, keeping all of the other data the same as in the original example. Consider a new job, Job 408, with the following characteristics:
| A | B | C | |
| 1 | Chapter2: Applying Excel | ||
| 2 | |||
| 3 | Cost summary for Job 408 | Department | |
| 4 | Milling | Assembly | |
| 5 | Machine-hours | 60 | 2 |
| 6 | Direct labor-hours | 8 | 20 |
| 7 | Direct materials cost | $500 | $250 |
| 8 | Direct labor cost | $160 | $400 |
In your worksheet, enter this new data in the cells for Job
407.
2. What is the new selling price for Job 408? (Round your
final answer to 2 decimal places.)
3. Without changing the data for the job from requirement 2
above, what is the selling price for Job 408 if the total number of
machine-hours in the Assembly Department increases from 3,000
machine-hours to 4,000 machine-hours? (Round your final
answer to 2 decimal places.)
4. Restore the total number of machine-hours in the Assembly
Department to 3,000 machine-hours. And keep the job data the same
as it was in Requirement 2. What is the selling price for Job 408
if the total number of direct labor-hours in the Assembly
Department decreases from 80,000 direct labor-hours to 50,000
direct labor-hours? (Round your final answer to 2 decimal
places.)
In: Accounting
A business that produces color copies is trying to minimize its average cost per copy (total cost divided by the number of copies). This average cost in cents is given by
f(x)equals=0.00000093x^2−0.0146+60,
where x represents the total number of copies produced.
(a) Describe the graph of f.
(b) Find the minimum average cost per copy and the corresponding number of copies made.
In: Math
Consider the following perfectly competitive market. The relationship between total product and cost for each individual producer is as follows: Total Product Marginal Cost Average Variable Cost Average Total Cost 3 5.00 8.00 16.00 4 6.00 7.50 13.00 5 7.00 7.00 11.25 6 8.00 7.25 11.00 7 9.00 7.33 10.50 8 10.00 7.67 10.00 (a) (i) Determine the shutdown quantity for the firm in this market. (ii) Determine the shutdown price for the firm in this market. Suppose the initial market price is equal to $8.00 (b) Determine the level of profit-maximizing output when the market price is equal to $8.00. (c) Determine the level of economic profit when the market price is equal to $8.00. Suppose the market demand curve is given by the following equation: QD = 52 – 2 * P (d) Determine the market equilibrium quantity when the market price is equal to $8.00. (e) How many firms currently operate in this market? (f) Do you expect the number of firms that operate in this market to increase, decrease, or remain constant? (g) Determine the long-run equilibrium market price. (h) Determine the long-run equilibrium market quantity. (i) How many firms operate in the market in the long-run equilibrium?
In: Economics
We have three types of firms in the market. Type 1 firms has the total cost of production as T C1 = Q2 1 + 100 and the fixed cost of production as F C1 = 19. Type 2 firms has the total cost of production as T C2 = Q2 2 + 64 and the fixed cost of production as F C2 = 15. Type 3 firms has the total cost of production as T C3 = Q2 3 + 36 and the fixed cost of production as F C3 = 11. The short run market demand is P = 100− 5 6Q. The long run market demand is P = 35− 3 5Q. There are a total of 3 type 1 firms, 4 type 2 firms, and 5 type 3 firms in the market in the short run. a. Characterize the ATC, AVC for each type of firm. Characterize the minimum ATC and AVC for each type of firm. b. Draw the ATC, AVC and MC curves for each type of firm. Make sure to label it carefully. c. Calculate and plot the market supply curve in the short run. Then characterize the equilibrium price and quantity in the market in the short run. d. Calculate and plot the market supply curve in the long run. Then characterize the equilibrium price and quantity in the market in the long run.
a. Characterize the ATC, AVC for each type of firm. Characterize the minimum ATC and AVC for each type of firm.
b. Draw the ATC, AVC and MC curves for each type of firm. Make sure to label it carefully.
c. Calculate and plot the market supply curve in the short run. Then characterize the equilibrium price and quantity in the market in the short run.
d. Calculate and plot the market supply curve in the long run. Then characterize the equilibrium price and quantity in the market in the long run
In: Economics
Johnson Company reports the following for the month of June.
| Date | Explanation | Units | Unit Cost | Total Cost | |||||||||
| June | 1 | Inventory | 225 | $5 | $1,125 | ||||||||
| 12 | Purchase | 525 | 6 | 3,150 | |||||||||
| 23 | Purchase | 750 | 7 | 5,250 | |||||||||
| 30 | Inventory | 280 | |||||||||||
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average cost. (Round average cost per unit to 2 decimal places, e.g. 5.25 and final answers to 0 decimal places, e.g. 2,520.)
| FIFO | LIFO | AVERAGE COST | |||||
| Ending inventory | |||||||
| Cost of goods sold | $ | $ | $ |
Which costing method gives the highest ending inventory? The highest cost of goods sold?
| Average costLIFOFIFO | costing method gives the highest ending inventory. | |
| Average costFIFOLIFO | method will produce the highest cost of goods sold. |
In: Accounting
In: Finance
Suppose you were to specify a short-run total cost function for a nursing home. Explain the variables you would include in the function. Which of these variables would be included in short-run fixed costs and which would be in short-run variable costs. Justify your selections.
In: Economics
Kingbird, Inc. reports the following for the month of
June.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
||||||
| June 1 | Inventory | 400 | $6 | $2,400 | ||||||
| 12 | Purchase | 800 | 7 | 5,600 | ||||||
| 23 | Purchase | 600 | 8 | 4,800 | ||||||
| 30 | Inventory | 200 | ||||||||
Assume a sale of 880 units occurred on June 15 for a selling price
of $9 and a sale of 720 units on June 27 for $10.
Calculate the cost of the ending inventory and the cost of goods
sold for each cost flow assumption, using a perpetual inventory
system. (Round average-cost per unit to 3 decimal
places, e.g. 12.520 and final answer to 0 decimal places, e.g.
1,252.)
|
FIFO |
LIFO |
Moving-Average Cost |
||||
| The cost ending inventory |
$ |
$ |
$ |
|||
| The cost of goods sold |
$ |
$ |
$ |
In: Accounting
1. Why is the average total cost curve U-shaped?
* Specifically, why's it downward sloping at first?
* Then why is the curve upward sloping at some point?
2. What are the similarities & differences between Diminishing Marginal Returns and Diseconomies of Scale?
In: Economics