Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:

*Applied to Work in Process during the period.

The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored.

Walser Inc. produces a product that passes through two processes. During February, equivalent units were calculated using the weighted average method:

The costs that Walser had to account for during the month of February were as follows:

1. Using the weighted average method, determine unit cost. If required, round your answer to the nearest cent and use rounded amount in subsequent requirements.

2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? If required, round your answers to the nearest dollar.

Cost of units transferred out

Cost of ending inventory

1. A company’s standard cost information for last year follows:

The company had the following actual results for the past year:

1. Direct Materials Price Variance

2. Direct Materials Quantity Variance: =

3. Total Direct Materials Spending Variance

4. Direct Labor Rate Variance

5. Direct Labor Efficiency Variance

6. Total Direct Labor Spending Variance

7. Variable Overhead Rate Variance

8. Variable Overhead Efficiency

1. Variable Overhead Spending Variance

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,300 Indirect labor 133,000 Property taxes, factory 8,300 Utilities, factory 73,000 Depreciation, factory 152,100 Insurance, factory 10,300 Total actual manufacturing overhead costs incurred $ 392,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 403,000 Direct labor cost $ 63,000 Inventories: Raw materials, beginning $ 20,300 Raw materials, ending $ 30,300 Work in process, beginning $ 40,300 Work in process, ending $ 70,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year.

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year. (If it is overapplied, enter the amount as a negative value using ())

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

Suppose the market price is $10 (this is also the firm's marginal cost), a firm's quantity sold is 11, and the average total cost for the firm at that price is $7. What is the firm's profit?

A firm is producing goods in a market where the market price is less than the​ firm's average total cost but greater than its average variable cost. At this point the firm​ should:

A.

shutdown production.

B.

increase price.

C.

continue to operate at a loss.

D.

decrease production.

A firm has two plants, which have Marginal Cost functions given by: MC(Q₁)=2Q₁ and MC(Q₂)=4Q₂. What is the overall Marginal Cost function? Q denotes the total output.

1. Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2000 to purchase, inventory carrying costs are 30% of the purchase price, and the cost of placing an order with its supplier is $120. (a) What is the EOQ? (b) What is the total inventory cost at the EOQ?