Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 18,000 hours for production: Variable overhead cost: Indirect factory labor $43,200 Power and light 13,500 Indirect materials 21,600 Total variable overhead cost $ 78,300 Fixed overhead cost: Supervisory salaries $76,490 Depreciation of plant and equipment 20,130 Insurance and property taxes 37,580 Total fixed overhead cost 134,200 Total factory overhead cost $212,500 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $39,780 Power and light 12,520 Indirect materials 21,400 Total variable cost $73,700 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

Using Regression Results to Construct and Apply a Cost Formula Dohini Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders. Month Purchasing Cost Number of Purchase Orders January $18,860 370 February 18,065 330 March 19,250 370 April 18,050 410 May 19,345 400 June 19,500 450 July 19,670 460 August 20,940 560 September 19,430 440 October 20,020 500 November 18,800 470 December 19,340 480 The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Intercept 15,021 (rounded to the nearest dollar) X variable 1 9.74 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. Total purchasing cost = $ 15,021 + ($ 9.74 × Purchase orders) 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) $ 19,209 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) $ What is the total fixed purchasing cost?

Riverside Inc. makes one model of wooden canoe. Partial information for it follows:

Required:

1. Complete the table.

3. Suppose Riverside sells its canoes for $510 each. Calculate the contribution margin per canoe and the contribution margin ratio.

4. Next year Riverside expects to sell 865 canoes. Complete the contribution margin income statement for the company.

Wellsley Containers currently uses a recycled plastic to make bottles for the food industry.

Current bottle production? information:

The cost and time standards per batch of 10,000 bottles are as ?follows:

4. The relationship between marginal and average costs

Consider the following scenario to understand the relationship between marginal and average values. Suppose Larry is a professional basketball player, and his game log for free throws can be summarized in the following table.

Fill in the columns with Larry's free-throw percentage for each game and his overall free-throw average after each game.

Equivalent Units and Product Cost Report—Weighted Average Method

In its first month's operations (January 2016,, Allred Company's Department 1 incurred charges of $180,000 for direct materials (20,000 units), $49,500 for direct labor, and $87,000 for manufacturing overhead. At month- end, 17,600 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs.

Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:

The equivalent units of materials and conversion costs.

The cost per equivalent unit of materials and conversion costs.

The total cost assigned to the units transferred out.

The total cost assigned to the ending inventory.

Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.

Round average cost per equivalent unit to two decimal places, if applicable.

Round other answers to the nearest whole number, when appropriate.

1. When the point of diminishing marginal product is reached, the addition of one more unit of labor will cause total product to ____
2. Diminishing marginal returns (= diminishing marginal product of labor) implies that marginal costs are ____
3. Refer to table below, which gives a firm's production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the ________ worker.

   Total product data

   Number of workers	Units of output
   0	0
   1	10
   2	30
   3	44
   4	55
   5	60
   6	60
   7	55

4. Mark's Baseballs produces baseballs. Mark's Baseballs has total fixed costs of $500. Mark's average variable cost is $20, and his average total cost is $25. Mark is currently producing how many baseballs? show work

   Cost data for Candy's Cakes

   # cakes	VC	MC	AVC	FC	TC	ATC
   0	n/a	n/a	n/a		50	n/a
   1		30
   2						50
   3			25
   4					155
   5	140

5. The table above presents the cost schedule for Candy's Cakes. What are total fixed costs if Candy produces four cakes? (show work/explain)
6. The table above presents the cost schedule for Candy's Cakes. What are total costs if Candy produces five cakes? (show work)
7. The table above still presents the cost schedule for Candy's Cakes. What is the marginal costs of the third unit? (show work)
8. The table above now represents the cost schedule for Candy's Canes (she makes walking canes for boomers). What is the average variable cost of producing four canes? (show work)