administrative
Q: The company makes a product with the following costs: Direct materials→₱17.00; Direct labor→₱22.00;…
A:
Q: The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing…
A: a. Describe whether variable costing or absorption costing is more likely to lead to such buildups:…
Q: Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.
A: Variable costs are those costs which change with the level of production or activity. The variable…
Q: Which of the following would be included in the cost of a product manufactured according to variable…
A: The question is related to Cost Accounting.
Q: If variable manufacturing costs are $14 per unit and total fixed manufacturing costs are $212,800,…
A: Variable costing: Variable costing is one of the costing methods that allocate only variable costs…
Q: 30 Applied fixed overhead 20 Variable selling and administrative cost 5 Allocated fixed selling and…
A: Total Variable Cost = $ 30 + 5 = $ 35Total Price = $ 105. Total Markup = $ 105 - 35 = $ 70The mark…
Q: The company makes a product with the following costs: Direct materials→₱15.70; Direct labor→₱19.70;…
A: Return per unit = (investment x rate of return) / no. of units = (340000*9%)/49000 = ₱0.62 per unit
Q: Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set…
A: Total Variable cost per unit = Direct material + Direct labour + Manufacturing overheads + Sales…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: Fixed Factory overhead cost =$82,000 Total units sold = 45,000 Thus, Fixed Factory overhead cost per…
Q: Ritner Corporation manufactures a product that has the following costs: Per Unit $ 22.50 $14.00…
A: Absorption costing is used to ascertain the cost per unit. In absorption costing we focus on the…
Q: The following costs were for Clear Vision Incorporated, a contact lens manufacturer: Output…
A: Introduction:- Cost are classified into types as follows under:- Fixed costs Variable costs Total…
Q: If variable manufacturing costs are $9 per unit and total fixed manufacturing costs are $274,500,…
A: The calculation of manufacturing cost per unit using Variable Costing Concept and Absorption Costing…
Q: Which of the following statements made by the CEO about introducing activity-based costing in…
A: 1. Introduction of ABC costing will reduce the cost in the short run. ABC system assign cost on the…
Q: You are advising the management at company ABC regarding their pricing decisions in relation to a…
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Q: Kesterson Corporation has provided the folloWIng IH Cost Cost per Period per Unit Direct materials…
A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…
Q: For XYZ Company, the following information related to costs is available for the last quarter:…
A: As per variable costing following costs are part of product costing: 1. Direct Material 2. Direct…
Q: Use the following information for Short Exercises S21-4 and S21-5. Dracut Company reports the…
A: Under Variable costing method, Fixed Manufacturing overheads are treated as a part of period cost…
Q: The following variable production costs apply to goods made by Raeburn Manufacturing Corporation:…
A: Variable costs: variable costs can be defined as the costs that change directly with the change in…
Q: Please give me instruction on the following step by step: Variable Costing Income Statement The…
A: The variable Income statement is prepared to derive the contribution margin which is obtained by…
Q: Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: The company makes a product with the following costs: Direct materials→₱15.70; Direct labor→₱19.70;…
A: Absorption costing Absorption costing is referred to as the managerial accounting method which…
Q: Ritner Corporation manufactures a product that has the following costs: Per Unit Per Year Direct…
A: In absorption costing , fixed manufacturing overhead will be included on predetermined basis. In…
Q: The Johnson Company uses an absorption-costing system based on standard costs. Variable…
A: Absorption costing system It is a managerial accounting method for recording all costs associated…
Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Magpie Corporation uses the total cost method of product pricing. Below is cost information for the…
A: Desired Net income = $621,000 * 21% Desired Net income = $130,410
Q: Puerto Princesa Company must determine a target selling price for one of its products. Cost data…
A: The selling price is computed as addition of mark up cost to cost price of a product.
Q: Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and…
A: High - low method is used to divide variable cost and fixed cost from the limited data available on…
Q: Spock Company incurs the following costs to produce and sell a single product. Variable costs per…
A: The variable Costing is a Management Accounting concept, where the overhead classification is made…
Q: The Mavis Company uses an absorption-costing system based on standard costs. Total variable…
A: Gross margin = Revenue - Cost of goods sold Operating Income = Gross margin - Total operating costs…
Q: The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing…
A: Compute the total cost per unit.
Q: Company has decided to use the high-low method to estimate the total cost and the fixed and variable…
A: Under high-low method, we have to separate fixed and variable cost from given limited amount of…
Q: Which of the following statements made by the CEO about introducing activity-based costing in…
A: 1. It is True that ABC costing recognizes that some overhead cost do not depend directly on the…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is the cost information…
A: Production Cost: It refers to the cost incurred for the manufacturing of the product. It includes…
Q: Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their…
A: Variable Costing and Absorption Costing The main difference between the variable costing techniques…
Q: Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for…
A: Markup is defined as the difference among the selling price of the service or the goods and costs.…
Q: The East Company manufactures several different products. Unit costs associated with Product ORD203…
A: The variable costs are the costs that changes with the change in number of units produced.
Q: Using absorption and variable costing Meyer Company reports the following information for March:…
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Q: Magpie Corporation uses the total cost method of product pricing. Below is cost information for the…
A: Cost per unit = Total cost / Units
Q: Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: Below is the partial list of sales and cost information for Syntax Line for the calendar year 2002.…
A: Under Absorption Costing, all costs are considered to calculate the cost of the product, these costs…
Q: The Singer Company manufactures several different products. Unit costs associated with Product…
A: The management cost accounting technique that considers only the variable costs are referred to as…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is cost information for…
A: Fixed factory overhead cost per unit = $82,000 / 45,000 units = $1.82 per unit.
Q: The West Company’s cost structure for a certain items at a level of 20,000 units per month are as…
A: Variable production cost per unit = Direct material + Direct labor + Variable indirect cost = $1 +…
Q: B. If 28,000 units are produced, what is the variable cost per unit? D. If 29,000 units are…
A: Solution:- B) If 28,000 units are produced, what is the variable cost per unit? Answer:-…
Q: The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing…
A: Recast the 2017 statement as shown below.
Q: BNM INC. presented the following data for 2021: Sales ₱256,000 Variable manufacturing costs 96,000…
A: Sales ₱256,000 Variable manufacturing costs 96,000
Q: For planning and control purposes, managers often compare planned and actual contribution margin.…
A: Computation of Contribution Margin
Q: Kimball Company has developed the following cost formulas: Material usage: Ym = $80X; r = 0.95…
A: Following is the answer to given question
Q: The Garvis Company uses an absorption-costing system based on standard costs. Variable manufacturing…
A:
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- 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. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.
- The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: a. Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. b. In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? How much would you be willing to pay per hour of overtime in each department? c. Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is 18 in department A, 22.50 in department B, and 12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? How much overtime do you recommend using in each department? What is the increase in the total contribution to profit if overtime is used?The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The chief executive officer of Acadia, Inc. attended a conference in which one of the sessions was devoted to variable costing. The CEO was impressed by the presentation and has asked that the following data of Acadia, Inc. be used to prepare comparative statements using variable costing and the companys absorption costing. The data follow: The factory produced 80,000 units during the period, and 70,000 units were sold for 700,000. 1. Prepare an income statement using variable costing. 2. Prepare an income statement using absorption costing. (Round unit costs to three decimal places.)
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?The following data were adapted from a recent income statement of The Procter Gamble Company (PG): Assume that the variable amount of each category of operating costs is as follows: a. Based on the data given, prepare a variable costing income statement for Procter Gamble, assuming that the company maintained constant inventory levels during the period. b. If Procter Gamble reduced its inventories during the period, what impact would that have on the operating income determined under absorption costing?Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
