1. Consider the short run. Define and explain via table (create an example) and graphical model the following short run costs considerations:
* Total Fixed costs
* Average Fixed costs
* Total Variable costs
* Average Variable costs
* Total costs
* Average total costs
* Marginal costs
2. For short run output determination, what are the essential cost considerations ?
In: Economics
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Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: |
| Molding | Fabrication | Total | ||||
| Machine-hours | 33,000 | 43,000 | 76,000 | |||
| Fixed manufacturing overhead costs | $ | 720,000 | $ | 270,000 | $ 990,000 | |
| Variable manufacturing overhead per machine-hour | $ | 5.90 | $ | 5.90 | ||
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During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: |
| Job D-70: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 379,000 | $ | 327,000 | $ | 706,000 |
| Direct labor cost | $ | 250,000 | $ | 140,000 | $ | 390,000 |
| Machine-hours | 24,000 | 9,000 | 33,000 | |||
| Job C-200: | Molding | Fabrication | Total | |||
| Direct materials cost | $ | 220,000 | $ | 290,000 | $ | 510,000 |
| Direct labor cost | $ | 140,000 | $ | 270,000 | $ | 410,000 |
| Machine-hours | 9,000 | 34,000 | 43,000 | |||
Delph had no overapplied or underapplied manufacturing overhead
during the year.
4. Required information
| Assume Delph uses a plantwide overhead rate based on machine-hours. |
| Required: |
| 1-a. |
Compute the predetermined plantwide overhead rate. (Round your answer to 2 decimal places.) |
| 1 b. |
Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 1-c. |
If Delph establishes bid prices that are 130% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.) |
| 1-d. |
What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 02-01 Compute a predetermined overhead rate.Learning Objective: 02-03 Compute the total cost and average cost per unit of a job.
Difficulty: 2 MediumLearning Objective: 02-02 Apply overhead cost to jobs using a predetermined overhead rate.
Check my work
5.
value:
25.00 points
Required information
| Assume Delph uses departmental overhead rates based on machine-hours. |
| 2-a. |
Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.) |
| 2-b. |
Compute the total manufacturing costs assigned to Job D-70 and Job C-200. (Round your intermediate calculations to 2 decimal places.) |
| 2-c. |
If Delph establishes bid prices that are 130% of total manufacturing costs, what bid price would it have established for Job D-70 and Job C-200? (Round your intermediate calculations to 2 decimal places.) |
| 2-d. |
What is Delph’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.) |
In: Accounting
Happy Valley Land and Snow Company provides the following ABC costing information:
Activities Total
Costs Activity-cost
drivers
Labor
hours
$420,000
8,000 hours
Gas
$136,000
6,000 gallons
Invoices $140,000
2,500 invoices
Total
costs $696,000
The above activities used by their three departments are:
Lawn Department Bush Department Plowing Department
Labor hours 2,500
hours 1,200
hours
4,300 hours
Gas 1,500
gallons
800 gallons 3,700 gallons
Invoices 1,600
invoices 400
invoices 500 invoices
a) How much of the total costs will be assigned to the Lawn
Department? $ _________
b) How much of the total costs will be assigned to the Bush
Department? $ _________
c) How much of the total cost will be assigned to the Plowing
Department? $ _________
d) What would have been the costs for each department if these
total costs had been allocated equally? $ __________
please explain
In: Accounting
A certain project operating under a FPIF contract has been negotiated and formally agreed-upon between a buyer and a seller. The following information has been included in the contract:
Price Ceiling: $531,000
Target Cost: $505,000
Target Fee: $20,000
Buyer's Share Ratio: 0.90
Seller's Share Ratio: 0.10
The project has finished and the actual cost the seller incurred was $510,954.
What incentive fee does the buyer pay the seller?
What is the total contract price (i.e., what the buyer has to pay the seller in total)?
What is the point of total assumption for the seller?
In: Operations Management
You need a loan of $160,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below.
Choice 1: 30 year fixed rate at 5% with closing costs if $2300 and no points.
Choice 2: 30 year fixed rate at 4.5% with closing costs of $2300 and 5 points.
What is the monthly payment for choice one?
What is the monthly payment for choice two?
what is the total closing cost for choice one?
what is the total closing cost for choice two?
why might choice one be better?
why might choice two be better?
In: Advanced Math
Total sales of ABC Corp. is $100 M and net income is $11.5M. The manager belives that eliminating the group marginal customers which constitutes 10% of the total sales, will increase the performance of the company. Distribute the revenue and expenses of BC Corp. between the marginal customers and credible customers, based on income statement, indicate whether the company should eliminate marginal customers or not, in terms of net profit margin.
Percentage of sales total/ fixed/ variable
Cost of sales (%) 70/ - /70
Overhead cost (%) 15/ 8/ 7
Collection exp.(%) 1 /-/ 1
Other exp. (%) 2.5/2/ 0.5
In: Finance
Cash $423
Accounts Receivable 15% of Total Revenue
Accounts Payable 20% of Cost of Goods Sold
Notes Payable $800
Inventory $2,900
Net Fixed Assets $14,800
Long-term Debt $3,500
Common Stock $10,000
Total Revenue $7,200
Cost of Goods Sold 50% of Total Revenue
Depreciation Expense $1,200
Selling, General, & Administrative Expense $1,000
Interest Expense 10% of Long-term Debt
Income Taxes 35% of Taxable Income
In: Finance
The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,200 units, 1/10 complete Materials $18,100 Units transferred out 54,700 Conversion costs 14,760 $32,860 Units started 51,000 Materials 220,220 Ending work in process 11,500 units, 1/5 complete Labor 67,500 Overhead 89,880 Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, February 1 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units Costs Materials Conversion Costs Total Unit costs Total Costs $ $ $ Equivalent units Unit costs $ $ $ Costs to be accounted for Work in process, February 1 $ Started into production Total costs $ Cost Reconciliation Schedule Costs accounted for Transferred out $ Work in process, February 28 Materials $ Conversion costs Total costs $ Click if you would like to Show Work for this question: Open Show Work
In: Accounting
Production Report, Weighted Average
Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing, and Bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in gallons.):
| Production: | |
| Units in process, April 1, 60% complete | 32,000 |
| Units completed and transferred out | 40,000 |
| Units in process, April 30, 20% complete | 6,000 |
| Costs: | |
| WIP, April 1 | $ 95,600 |
| Costs added during April | 118,640 |
Required:
Prepare a production report for the cooking department. Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations.
| Mino Inc. | |||
| Cooking Department Production Report | |||
| For the Month of April (Weighted Average Method) | |||
| Unit Information | |||
| Physical flow: | |||
| Units to account for: | Units | ||
| Units in beginning work in process | |||
| Units started | |||
| Total units to account for | |||
| Units accounted for: | Units | ||
| Units completed | |||
| Units in ending work in process | |||
| Total units accounted for | |||
| Equivalent units: | |||
| Units | |||
| Units completed | |||
| Units in ending work in process | |||
| Total equivalent units | |||
| Cost Information | |||
| Costs to account for: | |||
| Dollars | |||
| Costs in beginning work in process | $ | ||
| Costs added by department | |||
| Total costs to account for | $ | ||
| Cost per equivalent unit | $ | ||
| Costs accounted for: | |||
| Transferred Out | Ending Work in Process | Total | |
| Goods transferred out | $ | $ | |
| Goods in ending work in process | $ | ||
| Total costs accounted for | $ | $ | $ |
In: Accounting
Exercise 21-13 The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2017. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units, 1/10 complete Materials $18,000 Units transferred out 55,000 Conversion costs 14,175 $32,175 Units started 51,000 Materials 180,000 Ending work in process 11,000 units, 1/5 complete Labor 67,380 Overhead 61,445 Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) HEALTHY MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017 Equivalent Units Quantities Physical Units Materials Conversion Costs Units to be accounted for Work in process, February 1 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units Costs Materials Conversion Costs Total Unit costs Total Costs $ $ $ Equivalent units Unit costs $ $ $ Costs to be accounted for Work in process, February 1 $ Started into production Total costs $ Cost Reconciliation Schedule Costs accounted for Transferred out $ Work in process, February 28 Materials $ Conversion costs Total costs $ LINK TO TEXT LINK TO TEXT
In: Accounting