Vontungeln 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:

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.

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

What is the product margin for Product I6 under activity-based costing?

$11,928

$23,688

$2,000

$36,000

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:

Distribution of Resource Consumption Across Activity Cost Pools:

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:

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:

What is the product margin for Product W1 under activity-based costing?

Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows:

Required:

1. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 22,000 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

What do you add to get the totals for the listed above

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.90 Sales commissions $ 1.40 Variable administrative expense $ 0.90 Required: 1. If 13,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 18,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 13,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 13,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 18,000 units are produced, what is the average fixed manufacturing cost per unit produced? 7. If 13,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? 8. If 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production? (Round per unit values to 2 decimal places.)

Lindon Company uses 4,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $54,000 as follows:

An outside supplier has offered to provide Part X at a price of $11.50 per unit. If Lindon Company stops producing the part internally, one-fourth of the fixed manufacturing overhead would be eliminated.

INSTRUCTIONS Prepare an analysis showing the annual advantage or disadvantage of accepting the outside supplier's offer. When complete, answer each of the following by selecting the correct match from the list provided.

Problem 6-7AA Periodic: Alternative cost flows LO P3 Seminole Company began year 2017 with 28,000 units of product in its January 1 inventory costing $16.60 each. It made successive purchases of its product in year 2017 as follows. The company uses a periodic inventory system. On December 31, 2017, a physical count reveals that 51,000 units of its product remain in inventory. Mar. 7 44,000 units@ $19.60 each May 25 46,000 units @ $23.60 each Aug. 1 36,000 units @ $25.60 each Nov. 1O 41,000 units @ $28.60 each Required: 1. Compute the number and total cost of the units available for sale in year 2017. 2. Compute the amounts assigned to the 2017 ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, and (c) weighted average. Complete this questions by entering your answers in the tabs below. Required 1 \: Required 2 I Compute the number and total cost of the units available for sale in year 2017. I Total units available for sale !units Total cost of units available for sale I Requirement 2: Compute the amounts assigned to the 2017 ending inventory and the cost of goods sold using (a) FIFO, (b) LIFO, AND (c) weight average. (Round per unit costs to three decimals. But inventory balances to the dollar).

Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows:

Amount per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 Required:

1. If 20,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 23,000 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 20,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 23,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 20,000 units are produced, what is the average fixed manufacturing cost per unit produced?

6. If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced?

7. If 20,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

8. If 23,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

(Round per unit values to 2 decimal places.) for the answer.

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:

Distribution of Resource Consumption Across Activity Cost Pools:

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:

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Sales and Direct Cost Data:

What is the product margin for Product W1 under activity-based costing?

Bob Thomason produces theorems using hours of labor and Big Machines. In the short run, his labor is a variable factor but the number of Big Machines is fixed. When he works for L hours using M Big Machines, Bob can produce L·M theorems. There are only 3 Big Machines in the world, and they can only be rented in whole number quantities (you can not employ 1/2 of a Big Machine). Bob's time is worth $1 per hour, and it costs $1 per hour to rent a Big Machine. Draw Bob's short run total cost curve on the assumption that he employs 1 Big Machine. Do the same on the assumption that he employs 2 Big Machines. Do the same on the assumption that he employs 3 Big Machines. Draw Bob's long run total cost curve. Repeat questions 6 and 7 with “total cost" replaced by “average cost." Repeat questions 6 and 7 with “total cost" replaced by “marginal cost." Suppose that a firm experiences constant returns to scale at all levels of output. True or False: Whenever the firm increases its use of inputs, its output expands proportionately. Thus this firm never experiences diminishing marginal returns to labor. True or False: If the price of haircuts rises from $10 to $11, consumers' surplus will fall by 10%.

Bob Thomason produces theorems using hours of labor and Big Machines. In the short run, his labor is a variable factor but the number of Big Machines is fixed. When he works for L hours using M Big Machines, Bob can produce L·M theorems. There are only 3 Big Machines in the world, and they can only be rented in whole number quantities (you can not employ 1/2 of a Big Machine). Bob's time is worth $1 per hour, and it costs $1 per hour to rent a Big Machine. Draw Bob's short run total cost curve on the assumption that he employs 1 Big Machine. Do the same on the assumption that he employs 2 Big Machines. Do the same on the assumption that he employs 3 Big Machines. Draw Bob's long run total cost curve. Repeat questions 6 and 7 with “total cost" replaced by “average cost." Repeat questions 6 and 7 with “total cost" replaced by “marginal cost." Suppose that a firm experiences constant returns to scale at all levels of output. True or False: Whenever the firm increases its use of inputs, its output expands proportionately. Thus this firm never experiences diminishing marginal returns to labor. True or False: If the price of haircuts rises from $10 to $11, consumers' surplus will fall by 10%.