Calculate the total variable cost per unit for each firm in the trade Compute the percent of total for the material, labor, and variable components. Using the trade association's industry benchmark, calculate direc and direct manufacturing labor price and efficiency variances for t
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You are a new junior accountant at Perfect View Corporation, maker of lenses for eyeglasses. Your company sells generic-quality lenses for a moderate price. Your boss, the controller, has given you the latest month's report for the lens trade association. This report includes information related to operations for your firm and three of your competitors within the trade association. The report also includes information related to the industry benchmark for each line item in the report. You do not know which firm is which, except that you know you are firm A.
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- ParticularsAmountDirect materialR12Direct laborR50Variable manufacturing overheadR6.50Fixed manufacturing overhead (R81,000/2,550 units)R31.76Unit product cost for the month under absorption costingR100.26 Prepare an income statement for the month using the Marginal costing methodSelling price = $15 per unitVariable costs - variable manufacturing costs = $5 per unitvariable selling costs = $2 per unitFixed costs - Fixed manufacturing costs = 4 per unitFixed selling costs = $1 per unitActually production unit = 102000 unitsSold units = 96000 units Prepare an income statement for the year ended for the year using Absorption costing.Question September October November December Januarysales (units) 8000 12000 13000 16000 15000Direct manufacturing laborshour per unit 1.79 1.75 1.70 1.65 1.60Direct manufacturing labor rate per unit $15.75 $16.00 $16.50 $17.50 $17.50Ending inventory required is the next month sales , plus one half the following months salesThe ending inventory in august was 15000 unitsEach employee is required to contributed to Canada pension plan in the order of 4.9% of wages, this is matched by the employerWorkers compensation expenses are 1.9% of the wage totalEmployment insurance is 1.85% of wages and the employer pays 1.4 times the rate…EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $261,300 10 Selling expenses: Sales salaries and commissions 54,300 4 Advertising 18,400 Travel 4,100 Miscellaneous selling expense 4,500 4 Administrative expenses: Office and officers' salaries 53,100 Supplies 6,500 2 Miscellaneous administrative expense 6,040 2 Total $408,240 $54 It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 $- Select - Cost of goods sold: $- Select - - Select - - Select -…
- Check out the image for the questionDenton Company manufactures and sells a single product. Cost data for the product are givenbelow: 10Variable costs per unit:Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $ 7Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . 10Variable manufacturing overhead . . . . . . . . . . 5Variable selling and administrative . . . . . . . . . 3Total variable cost per unit . . . . . . . . . . . . . . . $25Fixed costs per month:Fixed manufacturing overhead . . . . . . . . . . . . $315,000Fixed selling and administrative . . . . . . . . . . . 245,000Total fixed cost per month . . . . . . . . . . . . . . . $560,000The product sells for $60 per unit. Production and sales data for July and August, the first twomonths of operations, follow: Units Produced Units SoldJuly . . . . . . . . . . . . . 17,500 15,000August . . . . . . . . . . . .17,500 20,000 The company’s Accounting Department has prepared absorption costing income statements…Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…Relevant-cost approach to short-run pricing decisionsAlexon SL is an electronics business with eight product lines. Profit data for one of the products (XT-107) for themonth just ended (June 2018) are as follows:Sales, 200 000 units at average price of €100Variable costsDirect materials at €35 per unitDirect manufacturing labor at €10 per unit€7 000 0002 000 000€20 000 000Variable manufacturing overhead at €5 per unit 1 000 000Sales commissions at 15% of sales 3 000 000Other variable costs at €5 per unitTotal variable costs 1 000 000 14 000 000Contribution margin 6 000 000Fixed costsOperating profit5 000 000€1 000 000Xuclà Mecàniques Fluvià SA, an instruments company, has a problem with its preferred supplierof XT-107 component products. This supplier has had a three-week strike and will not be able tosupply Xuclà 3000 units next month. Xuclà approaches the sales representative of Alexon SL,Angela Zamora, about providing 3000 units of XT-107 at a price of €80 per unit. Zamorainforms…
- VARIABLE COSTING AND ABSORPTION COSTINGUmdloti Ltd, which manufactures liquid hand soap, commenced operations on 01 November 2021. Standard production for a typical month is expected to be 160 000 bottles. During November 2021 the company manufactured 170 000 bottles of hand soap. On 30 November 2021 there were 46 000 bottles of hand soap in inventory. Manufacturing and commercial costs during November 2021 were as follows:Direct materials R212 500Direct labour R680 000Variable manufacturing overheads R37 400Variable marketing costs R135 160Fixed administration costs R84 320Fixed manufacturing overheads R113 900The hand soap was sold at R12 per bottle during November 2021. During December 2021, Umdloti Ltd decided to increase the selling price by 10% because the fixed manufacturing costs increased by R27 100 and the variable marketing costs increased by R0.11 per unit sold with effect from 01 December 2021. The company manufactured 150 000 bottles of hand soap during December 2021.…Resolve using this format: 1. High-low method Units CostHigh volumeLow volumeChangeVariable cost per unit: ÷ = $______________per unit Fixed cost 1,400 Units 2,400 UnitsTotal costVariable cost, $ per unitFixed cost 2. Variable cost charged to product: units × $ per unit = $__________________________. 3. Fixed cost charged to factory overhead: $ per month × 12 months = $__________________.Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $5 per pound) $ 75 Direct labor (3 hours @ $16 per hour) 48 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (123,900 pounds @ $4.80 per pound) $ 594,720 Direct labor (27,700 hours @ $16.10 per hour) 445,970 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.
- Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (2 hours @ $14 per hour) 28 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $4.75 per pound) $ 595,175 Direct labor (22,300 hours @ $14.15 per hour) 315,545 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.Required information [The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $10.00 per pound $ 40.00 Direct labor: 2 hours at $16 per hour 32.00 Variable overhead: 2 hours at $6 per hour 12.00 Total standard variable cost per unit $ 84.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 270,000 Sales salaries and commissions $ 240,000 $ 19.00 Shipping expenses $ 10.00 The planning budget for March was based on producing and selling 30,000 units. However, during March the company actually produced and sold 34,500 units and incurred the following costs: Purchased 150,000 pounds of raw…Preparing variable costing income statements, production less than sales Refer to your answers to Exercise E21-16. In May 2018, ReVitalAde produced 22,000 cases of powdered drink mix and sold 23,000 cases, of which 1,000 were produced in April. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing and $9,000 selling and administrative). Requirements Prepare the May income statement using variable costing. Determine the balance in Finished Goods Inventory as of May 31.