Kubin Company’s relevant range of production is 16,000 to 24,500 units. When it produces and sells 20,250 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.70 Direct labor $ 4.70 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 5.70 Fixed selling expense $ 4.20 Fixed administrative expense $ 3.20 Sales commissions $ 1.70 Variable administrative expense $ 1.20 Required: 1. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 24,500 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 24,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 16,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 24,500 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 16,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 24,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
In: Accounting
Luisa Crimini has been operating a beauty shop in a university
town for the past 10 years. Recently, Luisa rented space next to
her shop and opened a spray-tanning salon. She anticipated that the
costs for the spray-tanning service would primarily be fixed but
found that spray-tanning salon costs increased with the number of
appointments. Costs for this service over the past eight months are
as follows:
Spray-Tanning Appointments Total Cost
January 1,600
$
1,754
February
2,000
2,140
March 3,500 2,790
April
2,500
2,400
May
1,500
1,790
June
2,300
2,275
July
2,150
2,200
August 3,000 2,640
Required
(A) Using the high-low method, compute the variable rate for
tanning. Compute the fixed cost per month.
(B) Write the cost formula for spray-tanning services based on
Requirement
A.
(C) Calculate the total predicted cost of spray-tanning services
for September for 2500 appointments.
(D) How much is the total fixed cost for September? How much is the
total predicted variable cost for September?
(E) Identify and briefly explain any additional issues that Luisa
might be wise to consider when using the high-low method to
estimate the costs of her spray-tanning salon.
could u show me the whole solutions of this question?plz
In: Accounting
| On Company |
Off Company |
|||
| Materials inventory, December 1 | $64,830 | $85,580 | ||
| Materials inventory, December 31 | (a) | 96,710 | ||
| Materials purchased | 164,670 | (a) | ||
| Cost of direct materials used in production | 173,740 | (b) | ||
| Direct labor | 244,410 | 192,560 | ||
| Factory overhead | 75,850 | 95,850 | ||
| Total manufacturing costs incurred in December | (b) | 553,700 | ||
| Total manufacturing costs | 618,470 | 618,470 | ||
| Work in process inventory, December 1 | 124,470 | 206,250 | ||
| Work in process inventory, December 31 | 105,020 | (c) | ||
| Cost of goods manufactured | (c) | 548,570 | ||
| Finished goods inventory, December 1 | 109,560 | 95,850 | ||
| Finished goods inventory, December 31 | 114,750 | (d) | ||
| Sales | 955,590 | 855,800 | ||
| Cost of goods sold | (d) | 553,700 | ||
| Gross profit | (e) | (e) | ||
| Operating expenses | 124,470 | (f) | ||
| Net income | (f) | 189,990 | ||
Required:
1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
| Letter | On Company | Off Company |
| a. | $ | $ |
| b. | $ | $ |
| c. | $ | $ |
| d. | $ | $ |
| e. | $ | $ |
| f. | $ | $ |
2. Prepare On Company's statement of cost of goods manufactured for December.
| On Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Month Ended December 31 | |||
| $ | |||
| Direct materials: | |||
| $ | |||
| $ | |||
| $ | |||
| Total manufacturing costs incurred during December | |||
| Total manufacturing costs | $ | ||
| $ | |||
3. Prepare On Company's income statement for December.
| On Company | ||
| Income Statement | ||
| For the Month Ended December 31 | ||
| $ | ||
| Cost of goods sold: | ||
| $ | ||
| $ | ||
| $ | ||
| $ | ||
In: Accounting
| Matrix hair is a hair salon situated in a well-known shopping mall in Cape Town. The hair salon has a contract with a cleaning company that cleans the salon on a daily basis. The cost-structure of the total cleaning cost for a specific month consists of a fixed monthly fee and an additional cost per hour worked by cleaning staff. The fixed monthly fee charged by the cleaning company is constant between zero and 70 hours per month, but increases to a higher amount when more than 70 hours are worked in a specific month. |
| The following schedule lists the total costs and hours cleaning staff worked at the salon during the past 12 months: |
| Rand | Hours worked | ||||||
| January | 6,080 | 72 | |||||
| February | 5,520 | 68 | |||||
| March | 5,475 | 65 | |||||
| April | 5,400 | 60 | |||||
| May | 5,535 | 69 | |||||
| June | 6,095 | 73 | |||||
| July | 6,110 | 74 | |||||
| August | 5,460 | 64 | |||||
| September | 6,170 | 78 | |||||
| October | 5,490 | 66 | |||||
| November | 5,490 | 66 | |||||
| December | 6,080 | 72 | |||||
| Required: |
| Complete the following table using the High-low method: |
Variable cost per hour worked by cleaning staff ……………………
Total fixed cost for a month in which less than 70 hours are worked by cleaning staff …………………………..
Total fixed cost for a month in which more than 70 hours are worked by cleaning staff ………………………..
In: Accounting
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
| Overhead costs: | |||||||
| Equipment depreciation | $ | 92,000 | |||||
| Supervisory expense | $ | 4,000 | |||||
Distribution of Resource Consumption Across Activity Cost Pools:
| Activity Cost Pools | |||||
| Machining | Order Filling | Other | |||
| Equipment depreciation | 0.60 | 0.20 | 0.20 | ||
| Supervisory expense | 0.30 | 0.20 | 0.50 | ||
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.
Activity:
| MHs (Machining) | Orders (Order Filling) | |
| Product W1 | 4,200 | 800 |
| Product M0 | 15,800 | 200 |
| Total | 20,000 | 1,000 |
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales and Direct Cost Data:
| Product W1 | Product M0 | |||||||||
| Sales (total) | $ | 236,500 | $ | 262,000 | ||||||
| Direct materials (total) | $ | 90,900 | $ | 123,900 | ||||||
| Direct labor (total) | $ | 110,400 | $ | 76,100 | ||||||
What is the product margin for Product W1 under activity-based costing?
Multiple Choice
$23,356
$35,200
$7,996
-$12,800
In: Accounting
Balerio Corporation's relevant range of activity is 11,000 units to 14,000 units. When it produces and sells 13,000 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 6.70 |
| Direct labor | $ | 3.50 |
| Variable manufacturing overhead | $ | 1.80 |
| Fixed manufacturing overhead | $ | 13.70 |
| Fixed selling expense | $ | 2.95 |
| Fixed administrative expense | $ | 1.60 |
| Sales commissions | $ | 0.70 |
| Variable administrative expense | $ | 0.60 |
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 13,000 units? (Do not round intermediate calculations.)
b. If 12,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
c. If 12,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations.)
d. If the selling price is $19.50 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)
e. What incremental manufacturing cost will the company incur if it increases production from 13,000 to 13,001 units? (Round "Per unit" answer to 2 decimal places.)
Total product cost : ____
Variable cost per unit sold : ____
Total variable costs : ____
Contribution margin per unit : ____
Incremental manufacturing cost : ___
In: Accounting
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.30 Direct labor $ 3.20 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 3.90 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.70 Sales commissions $ 0.60 Variable administrative expense $ 0.60 Required:
a. If 5,500 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
b. If 5,500 units are sold, what is the total amount of variable costs related to the units sold?
c. If 5,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.)
d. If 5,500 units are produced, what is the total amount of fixed manufacturing cost incurred?
e. If 5,500 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.)
f. What incremental manufacturing cost will the company incur if it increases production from 4,500 to 4,501 units? (Round "Per unit" answer to 2 decimal places.)
In: Accounting
Saxbury Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 4,600 units, its average costs per unit are as follows:
|
Average Cost per Unit |
|||
| Direct materials | $ | 6.20 | |
| Direct labor | $ | 3.20 | |
| Variable manufacturing overhead | $ | 1.80 | |
| Fixed manufacturing overhead | $ | 4.20 | |
| Fixed selling expense | $ | 0.80 | |
| Fixed administrative expense | $ | 0.65 | |
| Sales commissions | $ | 0.55 | |
| Variable administrative expense | $ | 0.55 | |
Required:
a. If 5,600 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)
b. If 5,600 units are sold, what is the total amount of variable costs related to the units sold?
c. If 5,600 units are produced, what is the average fixed manufacturing cost per unit produced? (Round "Per unit" answer to 2 decimal places.)
d. If 5,600 units are produced, what is the total amount of fixed manufacturing cost incurred?
e. If 5,600 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis? (Round "Per unit" answer to 2 decimal places.)
f. What incremental manufacturing cost will the company incur if it increases production from 4,600 to 4,601 units? (Round "Per unit" answer to 2 decimal places.)
In: Accounting
In its first month of operations (May 2019), Holland Company’s Department 1 incurred charges of $72,000 for direct materials (9,000 units), $38,700 for direct labor, and $13,950 for manufacturing overhead. At month end, 7,500 units had been finished and transferred out. Those remaining were finished with respect to material but only 40% finished with respect to conversion.
Assuming Holland uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following:
The equivalent units for material and conversion.
The cost per equivalent unit for material and conversion.
The total cost assigned to the units transferred out.
The total cost assigned to the ending inventory
In its first month of operations (May 2019), Holland Company’s Department 1 incurred charges of $72,000 for direct materials (9,000 units), $38,700 for direct labor, and $13,950 for manufacturing overhead. At month end, 7,500 units had been finished and transferred out. Those remaining were finished with respect to material but only 40% finished with respect to conversion.
Assuming Holland uses the weighted average method and that materials are added at the beginning of the process and conversion occurs evenly, compute the following
The equivalent units for material and conversion.
The cost per equivalent unit for material and conversion.
The total cost assigned to the units transferred out.
The total cost assigned to the ending inventory
In: Accounting
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
| Overhead costs: | |||||||
| Equipment depreciation | $ | 92,000 | |||||
| Supervisory expense | $ | 4,000 | |||||
Distribution of Resource Consumption Across Activity Cost Pools:
| Activity Cost Pools | |||||
| Machining | Order Filling | Other | |||
| Equipment depreciation | 0.60 | 0.20 | 0.20 | ||
| Supervisory expense | 0.30 | 0.20 | 0.50 | ||
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.
Activity:
| MHs (Machining) | Orders (Order Filling) | |
| Product W1 | 4,200 | 800 |
| Product M0 | 15,800 | 200 |
| Total | 20,000 | 1,000 |
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales and Direct Cost Data:
| Product W1 | Product M0 | |||||||||
| Sales (total) | $ | 236,500 | $ | 262,000 | ||||||
| Direct materials (total) | $ | 90,900 | $ | 123,900 | ||||||
| Direct labor (total) | $ | 110,400 | $ | 76,100 | ||||||
What is the product margin for Product W1 under activity-based costing?
$7,996 A
$23,356 B
-$12,800 C
$35,200 D
In: Accounting