A company expects to manufacture 7,000 units. Its direct material costs are $10 per unit, direct labor is $9 per unit, and variable overhead is $3 per unit. The fixed overhead is estimated at $49,000. How much would each unit cost under both the variable method and the absorption method?

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A: Predetermined overhead rate = Total Overhead costs / Direct labor hours Predetermined overhead rate…

Q: Operating at a normal level of 30,000 direct labor-hours, Lasser Company produces 10,000 units of…

A: Pre-Determine Overhead Rate:   A pre-determine overhead rate is allocation rate used by the company…

Q: Operating at a normal level of 30,000 direct labour-hours, Lasser Company produces 10,000 units of…

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A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: DMC produces on average 7,500 units - 12,500 units. The following unit costs are incurred for…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

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A: Variable costs :- are costs that change with each level of output while fixed costs do not change…

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A: Step 1 Income statement is the statements of all the incomes or revenues adjusted by all the…

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A: Solution:- working notes as follows under:-

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

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Q: At 50,000 units of production, the Grayson Company expects costs to be as follows:   Direct…

A: Total cost per unit is calculated from the costs incurred divided by the number of units produced.…

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A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells…

A: As per authoring guidelines, the first three sub-parts are answered. Please repost the question…

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A: In ABC costing method, overheads are allocated based on the activity or cost pool. Overhead cost…

Q: Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells…

A: Particulars Amount Direct materials $7.00 Direct labor 4.00 Variable manufacturing overhead…

Q: A company produces and sells a single product, the standard unit costs details of which are the…

A: Sales = 14000 (January) & 16000 (February) Production units = 16000 units January & 14500…

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A: Budgeted Total overhead costs = variable overhead + fixed overhead = 4000000+4000000 = P8,000,000

Q: Golf Corporation estimates that its production for the coming year will be 25,000 units, which is…

A: GIVEN Golf Corporation estimates that its production for the coming year will be 25,000 units, which…

Q: Cost Driver rate

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A: Break even point is the point which shows the number of units required to sold to cover the…

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A: Lets understand the basics. For calculating standard cost per unit, we will need to use below…

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A: Pre-determined overhead rate is defined as the rate that is used in order to apply the manufacturing…

Q: To manufacture 500,000 TBS, the direct material cost per item is AED 120 and material scrap is…

A: direct material cost = 120 * 500,000 60,000,000 direct labor costs = AED 250,000  variable overheads…

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A: The predetermined overhead rate can be calculated by dividing the total estimated overhead by…

Q: Boarders estimates overhead will utilize 160,000 machine hours and cost P80,000. It takes 4 machine…

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Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The incremental cost refers to the total cost that a manufacturing unit incurs when an additional…

Q: K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and…

A: Answer:-  Overhead rate meaning:- A cost assigned to the manufacturing of a product or service is…

Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…

A: In ABC costing method, overheads are allocated based on the activity or cost pool. Overhead cost…

Q: A company expected its annual overhead costs to be $1,000,000 and direct labor costs to be $500,000.…

A: Predetermined overhead rate:   Predetermined overhead rate is a measure used to allocate the…

Q: Ethical Corp. estimates that its production for the coming year will be 10,000 units, which is 80%…

A: 10,000 unit is 80% of normal capacity Normal Capacity = 10,000/80% = 12,500 Fixed o/h = P400,000 (…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The concept of contribution margin is one of the fundamental concepts of break-even analysis under…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: Variable costs :- are costs that change with each level of output while fixed costs do not change…

Q: A company manufactures a single product which has the following cost structure based on a…

A: Break-even point:   It is a point when the company cover expenses incurred on the production. This…

Q: The variable production cost per unit of product B is £2 and the fixed production overhead is…

A: Total Variable cost = No. of units produced x variable cost per unit = 3,000 units x £2 per unit =…

Q: The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: At a volume of 20,000 units, Drees reported sales revenues of $1,000,000, variable costs of…

A: Total contribution=Sale-Variable costs=$1,000,000-$300,000=$700,000

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.