8. The Foster Company has three major products, CP10, CP20, and the CP35. Data from last year is shown below: CP10 Sales (units) 300 Sales price per unit $300 Direct material per $30 unit Direct labor per unit $45 Fixed Overhead per $45 unit CP20 500 $250 $20 $30 $30 CP35 300 $180 $15 $30 $30 There is no variable overhead. Fixed selling expenses were $150,000 for the year. a. Find the total fixed cost (overhead + selling) per year. b. Assuming the product mix remains the same, find the breakeven point in number of units sold for each product.
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- Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.XYZ 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…the following details are available regarding three products X Y Z $ $ $ selling price 200 300 400 direct materials 20 112 90 ($4 per kg) direct labour 80 44 120 variable overheads 40 22 60 variable overheads are recovered at the rate of $4 per hour. Total fixed overheads are $120,000. You are required to show the priority ranking of the products if labour hours is the limiting factor.
- 1) Eberling, Incorporated, manufactures and sells two products: Product Q9 and Product Z8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q9 900 8.0 7,200 Product Z8 1,000 7.0 7,000 Total direct labor-hours 14,200 The direct labor rate is $27.70 per DLH. The direct materials cost per unit is $122.40 for Product Q9 and $103.20 for Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Q9 Product Z8 Total Labor-related DLHs $ 531,080 7,200 7,000 14,200 Production orders Orders 74,880 600 700 1,300 Order size MHs 541,944 3,800 4,000 7,800 $ 1,147,904 Required: Determine the unit product cost of each product under the activity-based…2. Colonels uses a traditional cost system and estimates next year’s overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: Small Medium Large Units 32,000 12,000 4,000 Direct Material Cost $ 5 $ 8 $ 9 Direct Labor Hours per Unit 4 6 10 PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations). PLEASE NOTE: Costs per unit will be rounded to two decimal places and shown with "$"…10. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL VARIABLE MANUFACTURING COSTS?
- The total prime cost of a product 400. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is three times the direct labor cost per hour. The fixed manufacturing overhead was OMR5,500. Assuming that direct labor hours were 700 and that the direct labor cost was 40% of direct materials cost, how much is the total manufacturing cost? Select one a OMR83,600 b: OMR39,100 c. OMR17100 d. OMR13,900 e. OMR21,1002. Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Average Cost per Unit Direct Materials $10.00 Direct Labor $9.00 Variable Manufacturing Overhead $5.00 Variable Sales Commission $14.00 Fixed Selling & Administrative Expenses $8.00 Fixed Manufacturing Overhead $6.00 PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the costs data from Baxter Company, answer the following questions: If 15,000 units are produced, what is the variable cost per unit? If 28,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 29,000 units are…2. Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Average Cost per Unit Direct Materials $10.00 Direct Labor $9.00 Variable Manufacturing Overhead $5.00 Variable Sales Commission $14.00 Fixed Selling & Administrative Expenses $8.00 Fixed Manufacturing Overhead $6.00 PLEASE NOTE #1: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). PLEASE NOTE #2: Total costs dollar amounts will be whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the costs data from Baxter Company, answer the following questions: If 29,000 units are produced, what are the total variable costs? If 17,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing…
- Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Answer all questions independently.Required:1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units?2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units?3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges…16. Platinum Corporation gathered the ff. data for its maintenance costs: Units produced 100,000 90,000 106,000 Total costs 1,300,000 1,500,000 1,750,000 Using high-low method, what is the variable cost per unit?A company absorb overheads based on output levels. During the period the company over-absorbed overheads by ghc6000 based on 5000 budgeted units. The actual overhead cost for the period is ghc34000. The company estimates that the total of direct material and direct labour cot for producing a unit of the product is ghc50 and expects a margin of 20%. What is the selling price per unit? A. Ghc71.5 B. Ghc72.5 C. Ghc73.5 D. Ghc74.5
