The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 16,600 Indirect labor 146,000 Property taxes, factory 9,600 Utilities, factory 86,000 Depreciation, factory 252,700 Insurance, factory 11,600 Total actual manufacturing overhead costs incurred $ 522,500 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 416,000 Direct labor cost $ 76,000 Inventories: Raw materials, beginning $ 21,600 Raw materials, ending $ 31,600 Work in process, beginning $ 41,600 Work in process, ending $ 71,600 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 21,300 machine-hours were used during the year. Required: 1. Compute the amount of underapplied or overapplied overhead cost for the year. 2. Prepare a schedule of cost of goods manufactured for the year.

Emerson Corporation just completed its first year of operations. Planned and actual production equaled 17,000 units, and sales totaled 15,300 units at $107 per unit. Cost data for the year are as follows:

Required:

1. Compute the company’s total cost for the year assuming that variable manufacturing costs are driven by the number of units produced, and variable selling and administrative costs are driven by the number of units sold.
2. How much of this cost would be held in year-end inventory under (a) absorption costing and (b) variable costing?
3. How much of the company’s total cost for the year would be included as an expense on the period’s income statement under (a) absorption costing and (b) variable costing?

The following cost data relate to the manufacturing activities of Chang Company during the just completed year:

The company uses a predetermined overhead rate of $26 per machine-hour to apply overhead cost to jobs. A total of 19,800 machine-hours were used during the year.

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year.

2. Prepare a schedule of cost of goods manufactured for the year.

On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $422,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2018, his business generated a net income of $506,400 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019: $ Total cost recovery deduction in 2020: $.

Patty and Ben operate a small company that produces bicycles. Their fixed cost is $ 4000 per month. They can hire workers for $ 4000 per month. Their monthly production function for bicycles is as given in the following table:

Quantity of Labour Quantity of Bicycles
0 0

1 10

2 30

3 60

4 120

5 170

6 200

7 220

8 230

a.) For each quantity of labour calculate the following: total product (TP), marginal product (MP), average productivity (AP), average variable cost (AVC), average fixed cost (AFC), average total cost (ATC), and marginal cost (MC).
b.) On one diagram draw the MP and AP
c.) On one diagram draw the AVC, ATC, and MC
d.) At what point does Patty and Ben experience decreasing marginal productivity? At what level of output are ATC minimized?

Riveria Co. makes and sells a single product. The current selling price is $38 per unit. Variable expenses are $19 per unit, and fixed expenses total $37,000 per month. Sales volume for May totaled 4,760 units.

Required:

1. Calculate operating income for May.
2. Calculate the breakeven point in terms of units sold and total revenues.
3. Management is considering installing automated equipment to reduce direct labor cost. If this were done, variable expenses would drop to $13 per unit, but fixed expenses would increase to $61,600 per month.

1. Calculate operating income at a volume of 4,760 units per month with the new cost structure.
2. Calculate the breakeven point in units with the new cost structure.
3. Why would you suggest that management seriously consider investing in the automated equipment and accept the new cost structure?
4. Why might management not accept your recommendation but decide instead to maintain the old cost structure?

Suppose you are given the following partially complete table. You have a meeting with the chief financial officer in fifteen minutes and he is expecting this information in its entirety. Note: all labor units are paid equally and labor is the firm’s only variable input.     

             Labor               Q              Fixed Cost       Variable Cost              Total Cost                   

            =========================================================          

            0                      0                      ______                        $0                    ______           

            1                      1,500               ______                        ______            ______

            2                      4,500               ______                        ______            ______

            3                      6,000               ______                        ______            ______

            4                      7,200               ______                        $400                ______

            5                      8,000               ______                        ______            $7,500

b) The CFO is also interested in learning more about diminishing marginal returns. What would you tell him, and how would you explain where your company first encounters this phenomenon? Additionally, at which worker do diminishing marginal returns BEGIN?

c) The CFO also wants to know what the average fixed cost and the average total cost of the output is when the company produces 8,000 units. What would you tell him?

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below.

Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)

Pablo Company calculates the cost for an equivalent unit of production using process costing.

Required:

1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)

Weighted Average Cost per EU FIFO Cost Per EU

Direct Materials

Conversion

Total cost