# 5. The Windy Wind Chime Company has been producing and selling wind chimes for a number of years. The following information was gathered for 2016. Selling price per unit $12.50 Variable Cost per Unit: Direct Materials $3.00 Direct Labor $2.50 Overhead $1.20 Selling & Admin $2.35 Fixed Costs (Total) Overhead $50,000 $45,000 Selling & Admin
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- 4.The following were taken from accounting records of Bella Company in December 2020.Prime cost, P301,000Gross profit rate on sales, 20%Cost of goods available for sale, P460,000Direct materials purchased, P170,000Work in process, December 1, 2020, P34,000Direct Materials, December 1, 2020, P16,000Finished goods, December 1, 2020, P30,000Factory overhead, 40% of conversion cost.Sales, P500,000Direct labor, P180,000Compute for December 31, 2020: (1) Direct materials inventory; (2) Work in process inventory; (3) Finished goodsinventory: A.(1) P6,000 ; (2) P25,400 ; (3) P30,000B. (1) P49,000 ; (2) P25,000 ; (3) P30,000C. (1) P65,000 ; (2) P25,400 ; (3) P60,000D. (1) P65,000 ; (2) P25,000 ; (3) P60,000XYZ Inc. manufactures a component D12, and two main products F45 and P67. The following details relate to each of these items: D12 D45 P67 Selling price ? 146 159 Material cost 10 15 26 Component D12 (bought-in price) ? 25 25 Direct labour 5 10 15 Variable overheads 6 12 18 Total variable cost per unit 21 62 84 Fixed overhead costs: P per annum P per annum P per annum Avoidable* 9,000.00 18,000.00 40,000.00 Non-avoidable 36,000.00 72,000.00 160,000.00 Total 45,000.00 90,000.00 200,000.00 * The avoidable fixed costs are product-specific fixed costs that would be avoided if the product or component were to be discontinued. 1. Assuming that the annual demand for component D12 is 5,000 units and that XYZ Inc. has sufficient capacity to make the component itself, the maximum price that should be paid to an external supplier for 5,000 components per year is 2. Assuming that component D12 is bought from an external supplier for P25.00 per unit, the number of units…E5-3A Stage Two ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities: Activity Activity Cost Machine setup $60.00 per batch Movement 15.00 per batch 0.10 per pound Drilling 3.00 per hole Welding 4.00 per inch Shaping 25.00 per hour Assembly 18.00 per hour Inspection 2.00 per unit Filling an order for a batch of 50 fireplace inserts that weighed 100 pounds each required the following: * Four batch moves * Two sets of inspections * Drilling ten holes in each unit * Completing 100 inches of welds on each unit * Forty-five minutes of shaping for each unit * One hour…
- 1)Learned Corporation has provided the following information:Cost perUnitCost per PeriodDirect materials $ 5.00Direct labor $ 4.25Variable manufacturing overhead $ 1.85Fixed manufacturing overhead $ 35,000Sales commissions $ 0.70Variable administrative expense $ 0.60Fixed selling and administrative expense $ 9100Required:a. For financial reporting purposes, what is the total amount of product costsincurred to make 7000 units?b. For financial reporting purposes, what is the total amount of period costsincurred to sell 7000 units?c. If the selling price is $23.80 per unit, what is the contribution margin per unitsold? (Round your answer to 2 decimal places.)d. If 8000 units are produced, what is the total amount of direct manufacturingcost incurred?e. If 8000 units are produced, what is the total amount of indirect manufacturingcosts incurred?a. Total product (manufacturing) costb. Total period (manufacturing) costc. Contribution margin per unitd. Total direct manufacturing coste. Total…Q6 Q6 - A Black Brothers Furniture Corporation incurred the following costs: 1. Wood used in the production furniture 2. Hourly wages paid to workers 3. Salaries to factory supervisors 4. Nuts and bolts used for furniture 5. Depreciation on factory building 6. Property taxes 7. Insurance buildings 8. Sales staff salaries Instructions: Identify the costs above as variable or fixed costs. Q6 – B Hambar Co. has a unit selling price of $800, variable costs per unit of $520 and fixed costs of $420,000. The company’s sales units are 600,000 for this year. Instructions: a) Determine the contribution margin per unit. b) Using the contribution margin technique, compute the break-even point in units.Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salary
- The production department of Al Noor company provides you with specific cost details. The material used OMR 34,750, Direct labor hours used: 1200 Hours, direct wages OMR 25,000. Overhead Cost is 69,500. Using these data, compute overhead rate as a percentage of direct material cost. a. 50% b. 150% c. None of these d. 20096Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:Direct materials $43 per unitDirect manufacturing labor $5 per unitVariable manufacturing costs $3.50 per unitSales commissions $14.50 per partFixed manufacturing costs $65.00 per unitAdministrative expenses, all fixed $37.50 per unitWhat is the inventoriable cost per unit using variable costing? A) $66.00B) $51.50C) $48.00D) $103.50Isem Co.’s 2019 manufacturing costs were as follows: Direct materials and directlabor P700,000; Other variable manufacturing costs 100,000; Depreciation offactory building and manufacturing equipment 80,000; Other fixedmanufacturing overhead 18,000. What amount should be considered productcost for external reporting purposes? A. P700,000B. P800,000C. P880,000D. P898,000
- During 2022 Concord Manufacturing expected Job 25 to cost $74100 of overhead, $129100 of material, and $24500 in labour. Caruba applied overhead based on direct labour cost. Actual production required an overhead cost of $79900, $140400 in materials used, and $19600 in labour. All of the goods were completed. What amount was transferred to Finished Goods Inventory? $207980 $227700 $239900 $219280Solve the questions with the help of the data given below: Type of Data 2015 2016 Units of AIIPad produced and sold 800 900 Selling price $450 $430 Pounds of direct material used 3,200 3,300 Direct material cost per pound $35 $35 Manufacturing capacity in units 12,000 11,000 Total conversion costs $1,800,000 $1,650,000 Conversion cost per unit of capacity $150 $150 Selling and customer service capacity customers 90 customers Total selling and customer service costs $495,000 $495,000 Selling and customer service capacity cost and customer $500 $550 Assuming Titan had 70 customers in 2015 and 80 customers in 2016, 1. Calculate the operating income of Titan for 2015 and 2016; Particulars 2015 2016 Revenue; 800*450;900*430 360,000…E7-8 Innova uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows.Direct materials $ 65.00Direct labor 45.00Overhead 126.50Total $236.50Overhead costs include variable material handling costs of $6.50, which are applied to products on the basis of direct material costs. The remainder of the overhead costs are applied on the basis of direct labor dollars and consist of 60% variable costs and 40% fixed costs.A vendor has offered to supply the IMC2 component at a price of $200 per unit.Instructions(a) Should Innova purchase the component from the outside vendor if Innova’s capacity remains idle?(b) Should Innova purchase the component from the outside vendor if it can use its facilities to manufacture another product? What information will Innova need to make an accurate decision? Show your calculations.(c) What are the…