Homework 4

QUESTION ONE (1) Fresh Company produces a well-known perfume. The standard manufacturing cost of the perfume is described by the following standard cost sheet: Direct materials: Liquids (5 oz. @ RM 0.25) Bottles (1 @ RM 0.05) Direct Labor (0.25 @ RM 13.00) Variable overhead (0.25 @ RM 5) Fixed overhead (0.25 @ RM10.00) Standard cost per unit RM1.25 RM 0.05 RM 3.25 RM 1.25 RM 2.50 RM 8.30 Management has decided to investigate only those variances that exceed the lesser of 10% of the standard cost for each category or RM 22,000. During the past quarter, a total of 300,000 four-ounce bottles of perfume was produced. Descriptions of actual activity for the quarter follow: a. A total of 1.2 million ounces of liquids was purchased, mixed, and processed. The price paid per ounce averaged RM 0.27 b. Exactly 280,000 bottles were used. The price paid for each bottle was RM 0.055. C. Direct labor hours totaled 50,000 with a total cost of RM 650,000 d. Variable overhead cost totaled RM 242,000 e.…

roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs:       Fixed costs:     Direct materials $90 per unit     Factory overhead $199,200   Direct labor 31       Selling and admin. exp. 70,300   Factory overhead 23           Selling and admin. exp. 22             Total variable cost per unit $166 per unit       MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a.  Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b.  Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c.  Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…

The following information applies to the products of Stuart Company.     Product A   Product B   Selling price per unit $ 14   $ 12   Variable cost per unit   11     8     Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately.Required One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company’s capacity to make both products. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 13,000 units and 12,000 units, respectively. The maximum number of machine hours available is 41,000. Product A uses 3 machine hours, and Product B uses 5 machine hours. The company can sell all the…

Question 4 The following data is available for the products that a company manufactures: Sales price Costs: Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead Paragraph BI UA/ 叩く Product A $120 IIII 50 27 Material required 2.3 meters 3.0 meters 1.5 hours 1.0 hours Direct labour hours required Machine hours required 0.8 hours 0.5 hours The demand for each product exceeds the capacity of labour hours available to produce them. Required: 1. Compute the amount of contribution margin (profitability index) for Product B given the indicated constraint. 2. If the company has the indicated constraint, what are two ways they can increase capacity at the bottleneck? 16 8 Product B $140 +v 40 18 10 5

Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 5.10 Direct labor 7.00 Variable manufacturing overhead 2.40 Fixed manufacturing 18.00 overhead 32.50 Total cost per part An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $46.50 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $767,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.

The following information applies to the products of Thornton Company. Product Froduct Selling price per unit Variable cost per unit $17 $17 11 13 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately Required a. One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 11,000 units and 10,000 units, respectively. c. The maximum number of machine hours available is 46,000. Product A uses 2 machine hours, and Product B uses 10 machine hours. The company can sell all the products it produces. Complete this…

Sheridan Company manufactures and sells two products. Relevant per unit data concerning each product follow. Selling price Variable costs Machine hours (a) Product Basic $42.0 $24.0 0.5 Deluxe $55.0 $29.4 x Your answer is incorrect. 0.8 Compute the contribution margin per machine hour for each product. Contribution margin per machine hour $ Basic 40 $ Deluxe 51 F

Question Content Area If variable manufacturing costs are $18 per unit and total fixed manufacturing costs are $542,700, what is the manufacturing cost per unit if: a.  6,700 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b.  8,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c.  6,700 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d.  8,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4

Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit Variable cost per unit $ 90 $ 35 $ 65 $ 25 $ 45 $ 20 Machine-hours per unit 1.50 3 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to: Multiple Choice $82.50. $55.00. $36.67. $56.00.

Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 37 Selling and admin. exp. 71,400 Factory overhead 22 Selling and admin. exp. 18 Total variable cost per unit $144 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 5,310 units of cell phones. 2$ b. Determine the product cost per unit for the production of 5,310 of cell phones. If required, round your answer to nearest dollar. per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit Markup per unit Selling price…

Bruce Corporation makes your products in a single facility. These products have the following unit product COSTS. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units. Multiple Choice 10,800 9,800 10,500 A $ 19.90 12.20 12,000 1.60 10.80 $44.50 Products B $15.20 8.70 2.10 11.90 $37.90 C D $20.80 $ 23.20 10.50 7.40 2.00 8.80 $42.10 Products A B 1.20 0.70 $59.30 $ 51.70 $ 3.60 $ 1.50 4,000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? C 0.60 $59.50 $2.20 4,000 2.10 10.70 $43.40 D 0.60 $ 55.60 $ 3.60 2,000

Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0

Question:1 Fake Fur Company manufactures ecologically friendly fabric. Its primary customers are retailers. The estimated cost to make a meter of fabric is: Direct materials - $1.50 Direct labour - $0.70 Variable overhead - $2.05 Fixed overhead - $3.50 Total = $7.75 Variable selling costs per unit - $2.00 Fixed administration charges - $12,500 If Fake Fur Company prices its product using a mark-up of 150% of its variable production costs, what would the unit selling price be? Question:2 Your company wants to expand and it will cost $100,00. Your current sales are $1 million and your sales growth is 12%. If you expect no increase in expenses, can you expand next year? a) No, your increase in sales will not cover the expense. b) No, your expansion costs will go up. c) Yes, your increase in sales will cover the expense. d) Yes, your expansion costs will go down.

Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,580 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $79 Factory overhead $201,200 Direct labor 31 Selling and administrative expenses 68,500 Factory overhead 24 Selling and administrative expenses 19 Total variable cost per unit $153 Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 4,580 cell phones. b. Determine the product cost per unit for the production of 4,580 of cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per…

Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…

Ces Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required 1 Required 3 Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs Cost per unit Complete this question by entering your answers in the tabs below. Required 4 Complete the table. Note: Round your cost per unit answers to 2 decimal places. Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. 3. Suppose Riverside sells its canoes for $503 each. Calculate the contribution margin per canoe and the contribution margin ratio. 4. Next year Riverside expects to sell 855 canoes. Complete the contribution margin income statement for the company. $ 505 $ $ 70,700 148,700 $ 219,400 $ 505 2 7 ? 70,700 148,700 219,400 $ 0.00 655 $ 655 ? ? ? ? ? ? 0.00 0 $ $ 805 805 2 ? ? 2 2 ? 0 0.00

A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income a. b. $ $ What is the company's unit contribution margin? $0.86 per unit $2.35 per unit $4.10 per unit $1.75 per unit C. d. 520,000 2,132,000 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000

Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,440 cell phones are as follows: Variable costs per unit:       Fixed costs:     Direct materials $67       Factory overhead $199,800   Direct labor 40       Selling and administrative expenses 69,600   Factory overhead 22           Selling and administrative expenses 22             Total variable cost per unit $151         Voice Com desires a profit equal to a 13% rate of return on invested assets of $601,300. a.  Determine the amount of desired profit from the production and sale of 5,440 cell phones.$fill in the blank 1 b.  Determine the product cost per unit for the production of 5,440 of cell phones. Round your answer to the nearest whole dollar.$fill in the blank 2 per unit c.  Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.fill in the…

Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $70 Factory overhead $199,700 Direct labor 35 Selling and administrative expenses 69,300 Factory overhead 27 Selling and administrative expenses 21 Total variable cost per unit $153 MyPhone desires a profit equal to a 15% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. b. Determine the product cost per unit for the production of 4,950 of cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit Markup per unit…

Assume a company makes only three products, A, B, and C. Product A Product B Product C Estimated customer demand in units Selling price per unit 800 700 $ 80 $ 45 Variable cost per unit $ 35 $ 20 Machine-hours per unit 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice O O $52.800 $59,800 $55,000 $57,800 600 $ 65 $ 26 3.0

Product Cost Method of Product Costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $70 Factory overhead $199,700 Direct labor 35 Selling and administrative expenses 69,300 Factory overhead 27 Selling and administrative expenses 21 Total variable cost per unit $153 MyPhone desires a profit equal to a 15% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. $ 89,775 V b. Determine the product cost per unit for the production of 4,950 of cell phones. Round your answer to the nearest whole dollar. $ 853,100 X per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 30.83 d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total…

8.Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent.   Cost Machine Hours March $3,106       14,562       April 2,638       10,405       May 2,893       11,850       June 3,792       18,035       a.$0.76 b.$1.81 c.$0.72 d.$0.15

please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)       Exhibit 1: Assumptions (Both Products) Product #1: Launch-it Sales price per unit $ 10.00 Variable costs per unit: $ 4.00 Monthly volume 240     Product #2: Treat-time Sales price per unit $ 30.00 Variable costs per unit: $ 14.00 Monthly volume 160     Total fixed costs per month $ 1,500.00     Target profit per month $ 8,000.00       Margin of Safety (in $)       Margin of Safety %       Degree of Operating Leverage       Expected % change in operating income (%)

Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit:     Direct materials $ 7.00     Direct labor 3.50     Factory overhead 1.50     Selling and administrative expenses 3.00     Total $15.00 Fixed costs: Line Item Description Amount     Factory overhead $45,000     Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a.  Determine the amount of desired profit from the production and sale of Product T.fill in the blank 1 of 1$ b.  Determine the total variable costs for the production and sale of 75,000 units of Product T.fill in the blank 1 of 1$ c.  Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1% d.  Determine the unit selling price of Product T. Round…

Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit:     Direct materials $ 7.00     Direct labor 3.50     Factory overhead 1.50     Selling and administrative expenses 3.00     Total $15.00 Fixed costs: Line Item Description Amount     Factory overhead $45,000     Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000.   c.  Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%

Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,390 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Voice Com desires a profit equal to a 15% rate of return on invested assets of $600,200. a. Determine the amount of desired profit from the production and sale of 5,390 cell phones. $90 38 27 19 Markup Selling price $174 Fixed costs: Factory overhead Selling and administrative expenses b. Determine the product cost per unit for the production of 5,390 of cell phones. Round your answer to the nearest whole dollar. per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost per unit per…

Book Hint Ask Print erences IC raw ill L lon Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.2 pounds of the material, Ike uses 3.2 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. ! A Selling price per unit Variable costs per unit (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Contribution margin per pound Z dª ² Order in which management should produce and meet demand: F1 @@ 2 W S X command * F2 # 3 Kin $143.96 95.00 E D 8.0 F3 C MAR 29 $ Ike $ 120.24 94.00 4 Product Contribution Margin R a F4 F % Bix $ 204.50 144.00 5 V 9 S * 8 J DII F8 Bix ill M ( 9 K F9 O J O X A F10 L a P 4 command F11 J + optie

2 kipped Tirri Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Multiple Choice O $13.35 Help If the selling price is $28.20 per unit, the contribution margin per unit sold is closest to: $8.15 $16.70 $10.05 Save & Exit Submit Cost per Uni $ 7.55 $ 3.95 $ 1.60 $ 1.10 $ 0.65

Sensational Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available: Line Item Description Iced Tea Soda Lemonade Sales price per unit $0.90  $0.60  $0.50  Variable cost per unit (0.30) (0.15) (0.10) Contribution margin per unit $0.60  $0.45  $0.40  Sensational is experiencing a bottleneck in one of its processes that affects each product as follows: Line Item Description Iced Tea Soda Lemonade Bottleneck process hours per unit 3 3 4 a.  Using a theory of constraints (TOC) approach, rank the products in terms of profitability. Rank Product 1.   2.   3.   b.  What price for lemonade would equate its profitability (contribution margin per bottleneck hour) to that of soda? Round your answer to two decimal places.fill in the blank 1 of 1$

The table below shows cost data for producing different amounts of cleaning products. Use the given information to answer the questions below. Quantity Total Cost Variable Cost Marginal Cost Average Variable Cost Average Total Cost in $ in $ in $ in $ in $ 344 0 354 10 384 40 444 100 534 190 644 300 0 5 10 15 20 25 A What is the profit (loss) at that level of production? 2 6 12 18 22 How many cleaning products would a competitive firm produce if the market price was $18? 2.00 4.00 6.67 9.50 12.00 70.80 38.40 29.60 26.70 25.76

Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' 'Z' (RM) Product type (RM) (RM) Direct material 110 153 Direct labour department 140 Direct labour department 22d. Variable overheads Selling price 55 70 www 32 44 www 20 28 250 320 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct Jabour from department 2. www (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.

Benolt Company produces three products, A, B. and C. Data concerning the three products follow (per unit): Product A Selling price Less: Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution nargin $132.00 $92.48 $115.50 14.85 66.ee se.85 39.6e 24.75 44.55 69.30 39.60 79.20 $ 52.80 $23.10 $ 34.65 CH ratio 40 251 30x Demand for the company's products Is very strong. with far more orders each month than the company has raw materials avallable to produce. The same material is used in each product. The materlal costs $4.95 per klogram with a maximum of 8,230 kilograms avallable each month. Required: Calculate the contribution per constralned resource and prioritize the orders for products A, B and C. (Round your answers to 2 decimal places.) A Contribution per hour of labour used Priority Second Third First

Variable Costing—Production Exceeds Sales Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. a.  Determine whether variable costing operating income is less than or greater than absorption costing operating income.   b.  Determine the difference in variable costing and absorption costing operating income.$fill in the blank 2