Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 16,000 units of production.
| Average Cost per Unit |
|
| Direct Materials | $12 |
| Direct Labor | 9 |
| Indirect Materials | 2 |
| Fixed manufacturing overhead | 5 |
| Variable manufacturing overhead | 3 |
| Fixed selling and administrative expenses | 8 |
| Variable sales commissions | 25 |
Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
C. If 21,000 units are produced, what are the total variable costs?
Total variable costs $
D. If 12,000 units are produced, what are the total variable costs?
Total variable costs $
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
In: Accounting
Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost data represents average cost per unit for 14,000 units of production.
| Average Cost per Unit |
|
| Direct Materials | $13 |
| Direct Labor | 9 |
| Indirect Materials | 1 |
| Fixed manufacturing overhead | 5 |
| Variable manufacturing overhead | 3 |
| Fixed selling and administrative expenses | 8 |
| Variable sales commissions | 25 |
Using the cost data from Rose Company, answer the following questions:
A. If 9,000 units are produced, what is the variable cost per unit?
Variable cost per unit $?
B. If 18,000 units are produced, what is the variable cost per unit?
Variable cost per unit $?
C. If 22,000 units are produced, what are the total variable costs?
Total variable costs $?
D. If 11,000 units are produced, what are the total variable costs?
Total variable costs $?
E. If 19,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $?
F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $?
G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $?
H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $ ?
In: Accounting
The following information is for the standard and actual costs for Happy Corporation:
| Standard Costs: |
| Budgeted units of production 16,000 [80% (or normal) capacity] |
| Standard labor hours per unit 4 |
| Standard labor rate $26 per hour |
| Standard material per unit 8 lbs. |
| Standard material cost $12 per pound |
| Standard variable overhead rate $15 per labor hour |
| Budgeted fixed overhead $640,000 |
| Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. |
| Actual Costs: |
| Actual production 16,500 units |
| Actual material purchased and used 130,000 pounds |
| Actual total material cost $1,600,000 |
| Actual labor 65,000 hours |
| Actual total labor costs $1,700,000 |
| Actual variable overhead $1,000,000 |
| Actual fixed overhead $640,000 |
Enter favorable variances as negative numbers. Do not round interim calculations.
a. Determine the direct materials quantity variance, price variance, and total cost variance.
Direct materials:
| Quantity variance: | $ | |
| Price variance: | $ | |
| Total direct materials cost variance: | $ |
b. Determine the direct labor time variance, rate variance, and total cost variance.
Direct labor:
| Time variance: | $ | |
| Rate variance: | $ | |
| Total direct labor cost variance: | $ |
c. Determine the factory overhead volume variance, controllable variance, and total factory overhead cost variance.
Factory overhead:
| Volume variance: | $ | |
| Controllable variance: | $ | |
| Total factory overhead cost variance: | $ |
In: Accounting
1. Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production.
| Average Cost per Unit |
|
| Direct Materials | $13 |
| Direct Labor | 10 |
| Indirect Materials | 1 |
| Fixed manufacturing overhead | 5 |
| Variable manufacturing overhead | 2 |
| Fixed selling and administrative expenses | 8 |
| Variable sales commissions | 25 |
Using the cost data from Rose Company, answer the following questions:
A. If 10,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
B. If 17,000 units are produced, what is the variable cost per unit?
Variable cost per unit $
C. If 21,000 units are produced, what are the total variable costs?
Total variable costs $
D. If 11,000 units are produced, what are the total variable costs?
Total variable costs $
E. If 20,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred?
Total manufacturing overhead costs $
G. If 20,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
H. If 25,000 units are produced, what are the per-unit manufacturing overhead costs incurred? If required, round final answer to two decimal places.
Manufacturing overhead costs per unit $
In: Accounting
Pricing Concepts -Transportation Engineering
A transportation firm is producing a transport service (with quantity Q trips) with the following cost and revenue functions:
Total Cost: TC=$36,000 + $200Q + $0.4Q^2
Total Revenue: TR=$900Q-$0.1Q^2
Set up a table or spreadsheet for trip output/supply (Q), price (P), total revenue (TR), marginal revenue (MR), total cost (TC), marginal cost (MC), average cost (AC), total profit (π), and marginal profit (Mπ). Establish a range for Q from 0 to 1,000 in increments of 100 (i.e., 0, 100, 200, ..., 1,000). Using this spreadsheet, create a graph with AC and MC as dependent variables and trip output/supply (Q) as the independent variable.
a) At what combination of price P and supply Q is profit maximized? Why?
b) At what price P and supply Q is average cost (AC) minimized? Why?
In: Economics
| Harris Company manufactures and sells a single product. |
| 1. |
A partially completed schedule of the company’s total and per unit costs over the relevant range of 53,000 to 93,000 units produced and sold annually is given below: Complete the schedule of the company’s total and unit costs. (Round the variable cost and fixed cost to 2 decimal places.)
|
In: Accounting
A Company is selling two products A and B. It sells the two products at the prices of AED 190 and 230 respectively. The finance department estimated the fixed cost for both products A and B as AED 2400 and 2550 and the variable cost to make a unit of each product is AED 70 and 60 respectively.
If the company used new technology in redesigning product A and the total fixed cost reduced to AED 2250. The marketing department estimated the new selling price per unit to be AED 240 and that the company would be break-even if they sale 10 units of product A. Compute the variable cost per unit and the total variable cost of the newly designed product A?
In: Finance
(a) Define 'tests of control' and explain the
importance of tests of control in the audit of a
company.
(b) You are an audit senior in Asenso Boateng & Co a firm
providing audit and assurance
services. One of your clients is an exclusive hotel called 'Rock
City Hotel' situated in the
centre of Airport City Accra. As part of your audit procedures you
are assessing the controls
surrounding payroll. You have read last year's audit file and have
obtained the following
information:
The hotel employs both full and part time staff. Due to the nature
of the business most of
the work is done in shifts. All staff are paid on a monthly
basis.
New members of staff are given an electronic photo identification
card on the day they join
by the personnel department. This card is used to 'clock in' and
'clock out' at the start and
end of the shift to record the hours worked.
At the end of each week the information recorded on the system is
sent automatically to
the payroll department and also to the head of each of the three
main operating divisions:
Rooms, Food & Beverage and Corporate Events. Each division head
must reply back to the
payroll department by email to authorise the hours worked by their
staff.
The payroll clerk collates all the authorised information and then
inputs the hours worked
into a standardised computerised payroll package. This system is
password protected using
an alphanumerical password that is only known to the payroll clerk
and the finance
manager.
Once the hours have been entered, the calculation of the gross pay
and taxation are
calculated automatically along with any other statutory deductions.
At the end of the
calculations a payroll report is produced and printed. The finance
manager reviews the
report and compares the data to last month to identify and follow
up any unusual variances.
When he is satisfied with the information, he authorises the
payroll run by signing the
payroll report and the payroll clerk submits the data.
Payslips are sent to the home address of each employee and payment
is made by bank
transfer.
Required:
With reference to the scenario:
(i) Identify and explain FOUR STRENGTHS within the hotel's internal
control system in
respect of payroll.
(ii) For each of the identified strengths, state a test of control
the auditor could perform to
assess if the controls are operating effectively.
Please I need help on this question
In: Accounting
Consider a Monopolist where the inverse market demand
curve for the produce is given by
P = 520 − 2Q. Marginal Cost: MC =100 + 2Q and Total Cost: 100
.50
2
TC = Q + Q +
[1 + 1 + 1 = 3]
Calculate:
(a) Profit Maximizing Price and Quantity.
(b) Single Price Monopolist Profit.
(c) At the profit maximizing quantity, what is the Average Total
Cost (ATC) for the
Consider a Monopolist where the inverse market demand
curve for the produce is given by
P = 520 − 2Q. Marginal Cost: MC =100 + 2Q and Total Cost: 100
Q+Q^2+50
Calculate:
(a) Profit Maximizing Price and Quantity.
(b) Single Price Monopolist Profit.
(c) At the profit maximizing quantity, what is the Average Total
Cost (ATC) for the
In: Economics
In: Economics