8.4 Harris Company manufactures a single product. Costs for the year 2015 for output levels of 1,000 and 2,000 units are given in Table P8.4 10. At each level of output, compute the following: a. Total manufacturing costs. b. Manufacturing costs per unit. c. Total variable costs. d. Total variable costs per unit. e. Total costs that have to be recovered if the firm is to make a profit. Table P8.4 Units Produced Direct labor Direct materials Overhead: Variable portion Fixed portion Selling and administrative costs: Variable portion Fixed portion 1,000 $30,000 20,000 12,000 36,000 5,000 22,000 2,000 $60,000 40,000 24,000 36,000 10,000 22,000

8.4 Harris Company manufactures a single product. Costs for the year 2015 for output levels of 1,000 and 2,000 units are given in Table P8.4 10. At each level of output, compute the following: a. Total manufacturing costs. b. Manufacturing costs per unit. c. Total variable costs. d. Total variable costs per unit. e. Total costs that have to be recovered if the firm is to make a profit. Table P8.4 Units Produced Direct labor Direct materials Overhead: Variable portion Fixed portion Selling and administrative costs: Variable portion Fixed portion 1,000 $30,000 20,000 12,000 36,000 5,000 22,000 2,000 $60,000 40,000 24,000 36,000 10,000 22,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...

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The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.
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Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?
The following data have been taken from the records of a company: Production in units during 2011 200,000 Units sold during 2011 190,000 Selling Price per unit P 15.00 Standard Variable Costs per unit Material and Labor P 8.00 Indirect Manufacturing Costs 2.00 Selling and Administrative expenses 1.00 Fixed Costs budgeting for the year Indirect Manufacturing Costs P 400,000 Selling & Administrative Expenses P 300,000 Required: A. Determine the income (loss) before income taxes for the year 2011 under Absorption Costing?
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Chloe Enterprises operates a single-product entity. Data relating to the product for 2016were as follows. Annual volume 32 000 units Selling price per unit $60 Variable manufacturing cost per unit 28 Annual fixed manufacturing costs 120000 Variable marketing and distribution costs per unit 12 Annual fixed non-manufacturing costs 360000 Requireda. Calculate the break-even in both dollars and units for 2016.b. Calculate the margin of safety in both units and sales dollars.c. Calculate the profit achieved in 2016 given the annual volume of 32 000 units.d. Changes in marketing strategy are planned for 2017. This would increase variablemarketing and distribution costs by $4 per unit, and reduce fixed nonmanufacturingcosts by $80 000 per year. Calculate the units that would need tobe sold in 2017 to achieve the same profit as in 2016.e. Would you recommend the change? Explain.
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just solve the given mcqs: 1) Wolanski Corporation has provided the following data for its most recent year of operations: Selling price per unit $ 48 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 110,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Units in beginning inventory 0 Units produced during the year 11,000 Units sold during the year 8,000 Units in ending inventory 3,000 The unit product cost under variable costing is closest to: A $31.00 B $25.00 C $21.00 D $35.00 2) Kern Corporation produces a single product. Selected information concerning the operations of the company follow: Units in beginning inventory 0 Units…
Nala Nala Corporation sells its product for $195.70 per unit. In 2015 the company had total sales in units of 6,000. The total costs were the following: Variable cost of sales $457,800 Fixed cost of sales 100,000 Variable selling & administrative costs 108,500 Fixed selling & administrative costs 512,400 What is the best estimate of the total contribution margin?
5.) If 8,000 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 6.) If 8,000 units are sold, what is the average fixed manufacturing overhead cost per unit sold? 7.) If 12,000 units are sold, what is the variable cost per unit sold? 8.) If 12,500 units are sold, what is the total variable cost per unit sold?