Homework 2

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Rates Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory ME $ 5.00 per direct labor-hour $ 4.00 per machine-hour $ 60.00 per setup $ 100.00 per order $ 120.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: 378 852 Direct materials cost per unit Direct labor cost per unit $ 3.50 $ 20.00 $ 3.75 Number of units produced per year $9.00 400 2,000 Direct labor-hours Machine-hours Machine setups Production orders Chinmante Total Expected Activity 378 852 1,200 40 2,800 20 4 4 A 7 7 4

S 13. In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54,000 and the direct materials cost was $34,000, the direct labor cost was: A. $36,000 B. $22,667 C. $51,000 D. $81,000

QUESTION 2 A factory's records show the following costs and outputs for the last five months: Month |January February March Cost (£) 17,125 Output 650 17,800 940 April May 18,650 17,980 18,760 1,260 990 1,150 Using the High - Low method to calculate, what wouid the cost be of producing 1,000 units? O a. E15,500.00 Ob.E17,958.40 Oc £18,000.00 d. E18,269.50

QUESTION 1 Jay Emm Ltd manufactures and sells only one product. The following information refers to the operations during April 2020: 1. Cost per Unit of Product Raw Materials: R40.00 R36.00 Direct Labour: Material J (8kg at R5 per kg) Material M (6kg at R6 per kg) Station 1 (7 hrs at R8 per hour) Station 2 (5 hrs at R6 per hour) 9 hours at R5 per hour R56.00 R30.00 Manufaturing Overheads: R45.00 R207.00 Raw Material inventory 1 April 2020 30 April 2020 Material J 8,000 kg 7,000 kg 2,000 kg Material M 4,000 kg Production Statistics for April 2020 Finished goods on 1 April 500 units Sales in April 3,000 units at R300 per unit 300 units Finished products on 30 April Required Prepare the following budgets for April 2020: a) Production budget (unit and value) Raw Materials Purchases budget (kilogram and value) Direct labour budget (hours and value) b) Manufacturing overheads (hours and value) c) Closing inventories (units, kilograms, and value) Formatting (currency, thousands indicator,…

Question A.During the last 6 weeks, the actual costs of labor for Solsana Company were as follows: Week 1 Week 2 Week 3 $38,500 $40,000 $42,000 Week 4 Week 5 Week 6 $45,600 $48,000 $51,000 The standard materials cost for each week was $40,000 with an allowable deviation of ±5,000. Required: Plot the actual costs over time against the upper and lower limits. Comment on whether or not there is a need to investigate any of the variances. Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line

Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period  2.                                      D                  E                         F Production (units)        1,500           2,500                 14,000   Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3    2 Machine hours per unit 3 2    6   Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost             327,250 Handling cost                   187,000 Machine cost                     140,250 Inspection cost                  280,500                                           935,000   Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…

Please solve this MCQs The following costs were incurred in May:     Direct materials $ 43,100​   Direct labor $ 24,800​   Manufacturing overhead $ 18,100​   Selling expenses $ 20,300​   Administrative expense $ 28,700​ ​ ​ Prime costs during the month totaled:     $135,000     $86,000     $42,900     $67,900

nttps:25A%252F%252HM..mh A company allocates materials handling cost to the company's two products using the below data: Product A Product B Total expected units produced 5,400 11,800 Total expected material 530 470 moves Expected direct labor-hour 670 150 per unit The total materials handling cost for the year is expected to be $182,000. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Product B? (Round your intermediate calculations to 5 decimal places.) Multiple Choice $97,944 $74,263 $35,671 $59.791

Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? Total labor cost Manufacturing Overhead ? 400000 100000 90000 30000 ? Calculate: A. B. Calculate cost per unit B. Describe the production costs in the equation form Y = f+ vX. C. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month

Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,180 desks at a cost of $61,400. Using the high-low method of cost estimation, total fixed costs are a. $61,400 b. $82,000 c. $51,364 d. $20,600

Question 1 A manufacturing company that produces a single product has provided the following data related to its operations during May: Manufacturing costs: Variable costs per unit: Direct materials $22.50 Direct labor $20.00 $7.50 Variable manufacturing overhead Fixed manufacturing overhead costs (total) $875,000 Selling and administrative costs: Variable per unit Fixed (total) $5.00 $900,000 The product sells for $125 per unit. The company produced 35,000 units and sold 30,000 units in May. There is no beginning inventory. Required: a) Compute the breakeven sales dollars and margin of safety in sales dollars. b) Determine the unit product cost under: i. Absorption costing. Variable costing. ii.

Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. For financial accounting purposes, what is the total amount of perlod costs incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units? 1. Total amount of product costs 2. Total amount of period costs incurred 3. Total amount of product costs 4. Total amount of period costs

Print Item Question Content Area High-Low Method The manufacturing costs of Kellam Industries for the first three months of the year follow:   Total Costs Units Produced January $425,700   2,365 units February 565,710   4,420   March 662,200   6,665   Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a.  Variable cost per unit $fill in the blank 1 b.  Total fixed cost $fill in the blank 2

< Prev A company uses the following standard costs to produce a single unit of output. Direct materials Direct Manufacturing pounds at $0.70 per pound- 0.4 hour at $8.00 per hour labor $ 5.60 $ 3.20 $ 1.96 overhead 53 0.4 hour at $4.90 per hour - During the latest month, the company purchased and used 77,000 pounds of direct materials ata price of $0.90 per pound to produce 10,000 units of output Direct le month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 600 and fixed manufacturing overhee $10,000. Based on this information, the direct materials price variace for the month was: Multiple Choice $2,000 favorable $15,400 unfavorable $5,600 unfavorable $6,400 unfavorable Ne $5,600 favorable 23 of 25

EXERCISE 1 XYZ Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity $45,000 80,000 15,000 30,000 50,000 Number of moves Material-handling costs.. Machine costs... 450 Machine hours.. Number of orders. Number of parts.. Number of setups.. 20,000 Order costs.. 750 Receiving costs.. Setup costs.. 50,000 250 Assume that each activity corresponds to a process. XYZ's normal activity is 5,000 direct labor hours. The following two jobs were completed during March: Job X-1 Job Y-4 $1,500 $750 Direct materials $2,000 $750 Direct labor ($15 per hour)... Units completed... Number of moves. Machine hours.. Number of orders. Number of parts. Number of setups.. 200 200 3 6 125 75 3 12 200 800 1 4 Required: 1. Determine the unit cost for each job using direct labor hours to apply overhead.

Question 01 A proforma cost sheet of a company provides the following particulars: |Elements of Cost Raw Materials Direct Labours Overheads Total cost Profit |Selling price Amount in Rs Per unit 140 60 70 270 30 300 Further particulars available are : Raw materials are in stock on average for one month. Materials are in process on an average for half a month. Finished goods are in stock on an average for one month. Credited allowed by suppliers is one month-credited allowed to customers is two months. Lag in payment of wages one and a half weeks.(1 ½ Weeks), Lag in payment of overhead expenses is one month. One fourth of the output is sold against cash. Cash in hand and at bank is expected to be Rs 50,000. You are required to prepare a statement showing the working capital needed to finance, a level of activity of 240,000 units of production. You may assume that production is carried on evenly throughout the year, wages and overhead accrue similarly and a time period of 4 weeks is…

Paragraph Styles Acct 201 Practice Problems (Ch.2) Question 1: Nizwa Company estimates that annual manufacturing overhead costs will be OMR 900,000. Estimated annual operating activity bases are direct labor cost OMR 500,000, direct labor hours 50,000, and machine hours 100,000. Instructions Compute the predetermined overhead rate for each activity base.

Problem 4Sales Price Php 300 per unitFixed Cost:Marketing and administrative Php 24,000.00 per periodManufacturing overhead Php 30,000.00 per periodVariable Cost:Marketing and administrative Php 6 per unitManufacturing overhead Php 9 per unitDirect Labor Php 30 per unitDirect Materials Php 60 per unitUnit Produced and sold Php 1,200 per periodRequired: 1. Variable manufacturing cost per unit2. Variable cost per unit3. Full manufacturing cost per unit4. Full cost to make and sell per unit5. Compute Net income

Question No. 1-2 The estimated costs of producing 6,000 units of a component are: Per Unit Direct Material $10 Direct Labor 8 Applied Variable Factory Overhead 9 Applied Fixed Factory Overhead $1.5 per direct labor dollar The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. 12 Required: a. Should the component be purchased from the market? b. Being a production manager, provide your iogicai opinion on choosing between purchasing the component from market or producing in-house

QUESTION 10 Shoes Wisely, Inc. allocates overhead using machine hours as the allocation base. The following information was estimated at the beginning of the year: Estimated Manufacturing Overhead $68,000 Estimated Machine Hours 18,000 Actual overhead totaled $72,000. During the year, the company produced 8,500 units of product using 14,000 machine hours and 60,000 direct labor hours. How much manufacturing overhead was allcoated to the product during the year? Round your answer to whole dollars. esc Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 Q A 2 W S # 3 E ::: $ 4 D R % 5 TI MacBook Pro T 6 G & Y 7 H * 00 8 U J 9 Sa C K

Question 3 A product is manufactured by passing materials through two processes. Production costs for 2021 January are as follows: Direct materials Direct labour Overheads 4 000 kg @ $3.00 per kg $2.000 100% of direct labour cost There is no beginning or ending work in progress inventory. Normal losses: Process A Process B Scrapped values: B. Process A Process B Output for 2021 January was: Process A Process B 10% 5% $1.75 per kg $2.50 per kg Process A 3-500 kg 5.050 kg Prepare Process A and Process B accounts. Prepare abnormal loss/gain accounts. Process B 1 500 kg @ $2.50 per kg $1.500 125% of direct labour cost & a

02 d ces Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit:: Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 166,000 Total fixed cost per month $ 238,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced Units Sold 14,000 22,000 The company's Accounting Department prepared the following absorption costing income statements for July and August: July August $ 700,000 $1,100,000 336,000 364,000 194,000 $ 170,000 Required: 18,000 18,000 Sales Cost of goods sold. Gross margin Selling and administrative expenses Net operating income. $6 11 3 2 $ 22 528,000 572,000 210,000 $362,000

QUESTION TWO Makati Plc makes and sells a number of products. Estimated data for the forthcoming period is as follows: i) Product Data Production/Sales(units) Total direct material cost Total direct labour cost Product A 5,000 ZMW'000 80 40 Product B 10,000 ZMW'000 300 100 Other Products 40,000 ZMW'000 2,020 660 ii) Overhead costs are ZMW1, 500,000 of which 40% is related to the acquisition, storage and use of direct materials and 60% is related to the control and use of direct labour. iii) It is current practice in Makati Plc to absorb overhead costs into product units using overall companywide percentages on direct material cost and direct labour cost as the absorption bases. iv) Market prices for products A and B are ZMW 75 and ZMW 95 per unit respectively. Required: Prepare estimated unit product costs for Product A and Product B where overhead costs are charged to product units using the existing absorption basis as detailed above. Calculate the contribution for product A and B.

Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost 500000 Direct material cost Total labor cost Manufacturing Overhead 90000 400000 100000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+vX. D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month Question 6: Find the missing information for different companies Output (units) Fixed Costs Variable Costs Total Costs Cost per unit Company A Company B 4000 70000 50000 ? 5000 80000 140000 Company C 130000 8000 30000 Company D 80000 100000 20