Cookie Co. expects to maintain the same inventories at the end of 20Y9 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:

It is expected that 6,400 units will be sold at a price of $144 a unit. Maximum sales within the relevant range are 8,000 units.

Prepare an estimated income statement for 20Y9.

Cookie Co.

Income Statement

For the Year Ended December 31, 20Y9

Prospero Corporation’s total overhead costs at various levels of activity are presented below:

Assume that the total overhead costs above consist of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is:

Prospero Corporation’s management wants to break down the maintenance cost into its basic variable and fixed cost elements.

Required:

(1). Estimate how much of the $166,200 of overhead cost in October was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $166,200 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs!)

(2). Using the high-low method, estimate a cost formula for maintenance.

(3). Express the company’s total overhead costs in the linear equation form Y = a + bX.

(4). What total overhead costs would you expect to be incurred at an operating activity level of 15,000 machine-hours?

2.13 Program: Food receipt (Python 3)

1.Enter food item name: hot dog

Enter item price: 2

Enter item quantity: 5

RECEIPT

5 hot dog @ $ 2.0 = $ 10.0

Total cost: $ 10.0

2.Enter food item name: hot dog

Enter item price: 2

Enter item quantity: 5

RECEIPT

5 hot dog @ $ 2.0 = $ 10.0

Total cost: $ 10.0

Enter second food item name: ice cream

Enter item price: 2.50

Enter item quantity: 4

RECEIPT

5 hot dog @ $ 2.0 = $ 10.0

4 ice cream @ $ 2.5 = $ 10.0

Total cost: $ 20.0

3.Enter food item name: hot dog

Enter item price: 2

Enter item quantity: 5

RECEIPT

5 hot dog @ $ 2.0 = $ 10.0

Total cost: $ 10.0

Enter second food item name: ice cream

Enter item price: 2.50

Enter item quantity: 4

RECEIPT

5 hot dog @ $ 2.0 = $ 10.0

4 ice cream @ $ 2.5 = $ 10.0

Total cost: $ 20.0

15% gratuity: $ 3.0

Total with tip: $ 23.0

Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Assuming that Manufacturing Overhead has a debit balance of $3,600, determine whether overhead has been under/over applied and make the adjusting entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

wesltley widgets, Inc produces and sells a unique type of widget. The company has just opened a new plant to manufacture the widgets and the following cost and revenue data have been provided for the first month of the plant's operation .Beginning inventory, 0 units Units produced 40,000 units units sold 35,000 selling per unit $60 per unit selling and administrative expenses: variables per unit $2 per unit fixed(total) $500,000 Manufacturing cost: Direct materials cost per unit $14 per unit Direct labor cost per unit $7 per unit Variable manufacturing overhead cost per unit $2 per unit fixed manufacturing overhead cost (total) $600,000.

Assume the the company uses absorption costing

A) determine the product cost.

Direct materials per unit=

Direct labor per unit=

Variable manufacturing overhead per unit=

fixed manufacturing overhead per unit=

total product cost per unit=

B) prepare an income statement for the month

Sales (35,000 units)=

less cost of goods sold=

gross profit margin=

less: Variable selling and administrative=

less: fixed selling and administrative =

net income=

Assume that company uses the contribution approach with variable costing.

Determine the product cost.

a) total product cost

B) prepare an income statement for the month.

3. Suppose a monopoly firm faces demand for its product of ? = 12 − 2? and has total cost ?? = 8 + 4?. Its

production process, however, generates a pollution side effect that imposes a total cost on all others of 2?.

a. Before any correction for external costs, identify….the total revenue function of the firm.

TR = _________________________________________

b. ... the marginal revenue function of the firm. MR = _________________________________________

c. … the marginal cost function of the firm. MC = ______________________________

d. … the profit-maximizing quantity and price for the firm?

Q = _______________________

P = _______________________

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows:

The total factory overhead cost variance is

a.$1,780 favorable

b.$2,964 favorable

c.$596 unfavorable

d.$1,780 unfavorable

The inverse demand function for diamonds is P = 1500 − 2Q. The market for diamonds consists of two firms, Shiny and Dull. Shinys cost function is c(q) = 300q + 5,000 and Dulls cost function is c(q) = 300q + 10,000/4. Which of the following statements is true? ANS is E) but please show the working out

(a) Cournot equilibrium total output is 400. Stackelberg eq. total output is 300.

(b) Cournot equilibrium total output is 200. Stackelberg eq. total output is 450.

(c) Cournot equilibrium total output is 200. Stackelberg eq. total output is 150.

(d) Cournot equilibrium total output is 200. Stackelberg eq. total output is 300.

(e) Cournot equilibrium total output is 400. Stackelberg eq. total output is 450.

1) When more materials are used than allowed for actual production this will result in an unfavourable purchase price variance. TRUE or FALSE

2) MNO produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $5 per kilogram. During the last year, MNO purchased 10,000 kilograms of materials at total cost of $52,000. Also last year, MNO manufactured 3,000 units of product using a total of 7,000 kg. What was the MNO's materials purchase price variance for the year?

3) MNO produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $4 per kilogram. During the last year, MNO purchased 10,000 kilograms of materials at total cost of $54,000. Also last year, MNO manufactured 3,000 units of product using a total of 7,500 kg. What was the MNO's materials quantity variance for the year?

4) MNO produces a single product. The standard production requirement for each unit requires 2 kilograms of a single material at a standard cost of $5 per kilogram. During the last year, MNO purchased 10,000 kilograms of materials at total cost of $58,000. Also last year, MNO manufactured 3,000 units of product using a total of 7,000 kg. What was the MNO's materials purchase price variance for the year?

3.

Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.

                                                               Activity Cost Pools

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below:

                                                                                           Product Z3      Product T1

Required:

Calculate the following: