Electric costs at The Corporation's factories are listed bělow! Electrical Cost 7,371 7,740 Machine-Hours 413 24 March 506 $4 April May 435 24 7,447 486 24 7,660 June 499 24 7,704 July $4 $4 24 7,563 7,571 461 August September 467 7,522 7,403 October 458 425 24 Management believes that electrical cost is a mixed cost (both variable and fixed). The variable portion depends pn machine-hours. Using the high-low method, the estimate of the variable component of electrical cost per machine hour is closest to: November
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- Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Caterpillar? a. Amortization of patents on new assembly process b.Consultant fees for a study of production line employee productivity C. Depreciation on Peoria. Illinois, headquarters building d.Factory supplies used in the Morganton. North Carolina, engine parts plant e.Interest expense on debt f. Plant manager's salary at Aurora, Illinois, manufacturing plant g.Properly taxes on the Danville, Kentucky, tractor tread plant h.Sales incentive fees to dealers i. Steel plate j. Vice president of finance's salaryThe company has the following financial information:Manufacturing overhead- P30,101,800Increase in raw materials- P2,430,000Decrease in work in process- P590,000Increase in finished goods- P1,320,400Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.How much is the cost of goods sold? Choices: • P181,200,800 • P179,880,400 • P177,590,800 • P180,020,800The company has the following financial information:Manufacturing overhead- P30,101,800Increase in raw materials- P2,430,000Decrease in work in process- P590,000Increase in finished goods- P1,320,400Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.How much is the cost of goods sold? a. P180,020,800 b. P179,880,400 c. P181,200,800 d. P177,590,800
- Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data: Year 1 Year 2 Year 3 Inventories Beginning (units) 210 160 190 Ending (units) 160 190 230 Variable costing net operating income $290,000 $269,000 $260,000 The company’s fixed manufacturing overhead per unit was constant at $560 for all three years. rev: 03_09_2019_QC_CS-162392 Required: 1. Calculate each year’s absorption costing net operating income. (Enter any losses or deductions as a negative value.)According to the information given in the table below, which of the following is Cost of Production? Raw materials consumed 135000 Direct labor 87000 Factory overhead 60 % of purchases Administrative expenses 28500 Purchases 120000 Select one: a. 294000 b. 335000 c. 367300 d. 322500Happy Trails has the following information for its manufacturing: Direct Materials $16 Direct Labor $16 Variable Manufacturing Overhead $4 Fixed Manufacturing Overhead $25 Units Produced 27,000 Units Sold 19,000 Its income statement under absorption costing is: Sales $1,900,000 Beginning Inventory $0 Cost of Goods Manufactured 1,647,000 Cost of Goods Available for Sale $1,647,000 - Ending Inventory 488,000 Cost of Goods Sold $1,159,000 Gross Profit $741,000 -Sales and Admin. Expenses: Variable $152,000 Fixed 200,000 Total Sales and Admin. Expenses $352,000 Net Operating Income $389,000 Prepare an income statement with variable costing and a reconciliation statement between both methods. If an amount box does not require an entry, leave it blank. Happy TrailsVariable Costing Income Statement $- Select - $- Select - - Select - $- Select - - Select - $- Select - $- Select - - Select -…
- 4.The following were taken from accounting records of Bella Company in December 2020.Prime cost, P301,000Gross profit rate on sales, 20%Cost of goods available for sale, P460,000Direct materials purchased, P170,000Work in process, December 1, 2020, P34,000Direct Materials, December 1, 2020, P16,000Finished goods, December 1, 2020, P30,000Factory overhead, 40% of conversion cost.Sales, P500,000Direct labor, P180,000Compute for December 31, 2020: (1) Direct materials inventory; (2) Work in process inventory; (3) Finished goodsinventory: A.(1) P6,000 ; (2) P25,400 ; (3) P30,000B. (1) P49,000 ; (2) P25,000 ; (3) P30,000C. (1) P65,000 ; (2) P25,400 ; (3) P60,000D. (1) P65,000 ; (2) P25,000 ; (3) P60,000KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…Amalia Ltd currently manufactures and sells four products. Details of these products and relevant information are given below, for one period.Product P1 P2 P3 P4Output (Unit) 240 200 160 240Machine hours 8 6 4 6 (per unit) Cost per unit: Direct material £80 £100 £60 £20Direct labour £56 £42 £28 £42 Production overheads: Indirect material £20,860Indirect labour £10,500Rent £7,200Insurance £4,200Depreciation £9,240 Production overheads are currently absorbed by using a plant-wide rate per machine hour. Required:(a) You have been asked by the financial director to calculate the cost per unit for each product. All overhead costs are absorbed on a machine hour basis (show your workings as full as possible).(b) Compare the traditional…
- A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued: 20x1 20x2 Number of units produced 570,000 480,000 Labor hours used 190,000 240,000 Materials used (lbs.) 2,850,000 1,600,000 Unit selling price $22 $24 Wages per labor hour $12 $14 Cost per pound of material $3.40 $3.50 Required: 1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar. Cost of labor $fill in the blank Cost of materials $fill in the blank Total PQ cost $fill in the blank The actual cost of inputs for 20x2 are Cost of labor $3,360,000 Cost of materials $5,600,000 Total current cost $8,960,000 2. What is the net value of the productivity changes? If required, round your answers to the nearest dollar.$fill in the blank How much profit change is attributable to each…According to the information given in the table below, which of the following is Cost of Production? Raw materials consumed 184000 Wages 56000 Factory overhead 37 % of prime cost Interest expense 9500 Taxes 3300 Select one: a. 339300 b. 341500 c. 336000 d. 328800