In a manufacturing company of bicycles, the management wants to know the (1)Total Direct Costs and the (2) Total Indirect Costs with the following data. Bike Frame = Php2,500.00 Screws 723.00 Wheels 2,000.00 Labor of assembly worker (10,000) =
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- A manufacturing company is about to start manufacturing a new product, the FX200 The management accountant has provided the following information about the unit cost of the FX200: Direct labour (3 hours @R10/hr) Indirect labour (2 hours @R9/hr) Direct material (4 kg @R5/kg) Indirect material R10 Direct expenses R4 Indirect production expenses R7 Selling and distribution overhead R5 For one unit of FX200, calculate the following: a).The prime cost b).The total production cost c).The full costMvete Limited is an established company in the manufacturing industry. The company is manufacturing a very successful product, namely Vete12. The following cost structure is given to you, the newly appointed Trainee Cost Accountant, to advise management on the different levels of production: At the current level of 15 000 units produced and sold:Direct material R20 per unit Direct labour R375 000Indirect material R5 per unit Indirect labour (includes the production supervisors’ salary of R240 000. The remainder is R5.50 per unit R352 500 Other manufacturing overheads (all variable) R12.50 per unit Depreciation charge PPE (production plant and machinery) R375 000Selling and administrative expenses: • Variable selling expenses R10.25 per unit• Fixed selling expenses R5 per unit • Administrative expenses (all fixed) R7 per unit b) Why is there a difference in the unit cost? Discuss briefly c) Assume the company produces and sell 20 000 units, and wishes to make a net profit of R10 per…Mvete Limited is an established company in the manufacturing industry. The company is manufacturing a very successful product, namely Vete12. The following cost structure is given to you, the newly appointed Trainee Cost Accountant, to advise management on the different levels of production: At the current level of 15 000 units produced and sold:Direct material R20 per unit Direct labour R375 000Indirect material R5 per unit Indirect labour (includes the production supervisors’ salary of R240 000. The remainder is R5.50 per unit R352 500 Other manufacturing overheads (all variable) R12.50 per unit Depreciation charge PPE (production plant and machinery) R375 000Selling and administrative expenses: • Variable selling expenses R10.25 per unit• Fixed selling expenses R5 per unit • Administrative expenses (all fixed) R7 per unit Required b) Why is there a difference in the unit cost? Discuss briefly c) Assume the company produces and sell 20 000 units, and wishes to make a net profit of…
- Mvete Limited is an established company in the manufacturing industry. The company is manufacturing a very successful product, namely Vete12. The following cost structure is given to you, the newly appointed Trainee Cost Accountant, to advise management on the different levels of production: At the current level of 15 000 units produced and sold:Direct material R20 per unit Direct labour R375 000Indirect material R5 per unit Indirect labour (includes the production supervisors’ salary of R240 000. The remainder is R5.50 per unit R352 500 Other manufacturing overheads (all variable) R12.50 per unit Depreciation charge PPE (production plant and machinery) R375 000Selling and administrative expenses: • Variable selling expenses R10.25 per unit• Fixed selling expenses R5 per unit • Administrative expenses (all fixed) R7 per unit Required a) Calculate at the three 3 different production levels of: • 15 000 units (current level of production)• 20 000 units,• 12 000 units i. The variable…ost Behavior\\n\\nFresh Powder, Inc., manufactures snowboards. Based on past experience, Fresh Powder has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $503,230 + $1.33X, where X equals number of snowboards. Last year, Fresh Powder produced 18,200 snowboards. Actual overhead costs for the year were as expected.\\n\\nRequired:\\n\\n1. What is the driver for the overhead activity?\\n\\nNumber of snowboards\\n\\nFor questions 2-4, Enter the final answers rounded to the nearest dollar.\\n\\n2. What is the total overhead cost incurred by Fresh Powder last year?\\n\\n$fill in the blank 2\\n527,436\\n3. What is the total fixed overhead cost incurred by Fresh Powder last year?\\n\\n$fill in the blank 3\\n503,230\\n4. What is the total variable overhead cost incurred by Fresh Powder last year?\\n\\n$fill in the blank 4\\n1\\nFor questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations,…Luca Co offers machine rental services for concrete cutting. Consider the following costs of the company over the relevant range of 4,000 to 10,000 hours of operating time for its concrete cutting equipment. Hours of Operating Time 4,000 5,000 8,000 10,000 Total Costs: Variable Costs $ 20,000 ? ? ? Fixed Costs 82,000 ? ? ? Total Costs $102,000 ? ? ? Cost per hour: Variable cost ? ? ? ? Fixed cost ? ? ? ? Total cost per hour ? ? ? ? What is the estimated total cost per hour at a volume of 8,000 hours?
- Problem 1Classify the following as to Fixed, Variable or Mixed Cost1. Factory Rent2. Wages of workers paid based on units produced3. Cost Accountant Salary4. Depreciation based on output5. Salary of Factory supervisor6. Basic Salary plus sales commission of salesman7. Paper in manufacturing of books8. Factory Insurance9. Monthly Depreciation of Building10. Bottle used in packagingGupta Company manufactures miniature speakers that are built into the headrests of high-end lounge chairs. Based on past experience, Gupta has found that its total an- nual overhead costs can be represented by the following formula: Overhead cost $175,000 $1.10X, where X number of speakers. Last year, Gupta produced 70,000 speakers. Actual overhead costs for the year were as expected. 3-1 LO1 3-2 LO1 Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by Gupta last year? 3. What is the total fixed overhead cost incurred by Gupta last year? 4. What is the total variable overhead cost incurred by Gupta last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 50,000 units and (b) 100,000 units. Explain this outcome. please do not provide solution in image…Please help with the question number 4,5, and 6. Thank you Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing over-head applied on the basis of direct-labor dollars. The product costs have been computed as follows: Product G Product T Product W Raw material ..........................$ 35.00 $52.50 $17.50 Direct labor 16(.8 hr.at $20) 12(.6 hr at $20) 8(.4 hr at $20) Manufacturing overhead* ......140.00 105.00 70.00 Total product cost ..................$191.00 $169.50 $95.50 *Calculation of predetermined overhead rate: Manufacturing overhead budget: Machine…
- Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10000. All amounts are in OMR. Total Costs Variable Cost Fixed Cost Direct material cost 500000 ? ? Total labor cost ? 400000 100000 Manufacturing Overhead 90000 30000 ? Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y = f + vX. D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month Question 6: Find the missing information for different companies Output (units) Fixed Costs Variable Costs Total Costs Cost per unit Company A 4000 70000 50000 ? ? Company B 5000 80000 ? 140000 ? Company C 8000 30000 130000 ? ? Company D ? ? 80000 100000 20Please assist in solving (not graded) Practive exercise Please provide details with formulas Business Decision Case. The following total cost data are for the Ralston manufacturing company which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. Direct Materials $1,720,00Direct Labor $ 1,120,000Variable Overhead 560,000Fixed Overheard (N1) 880,000Selling Expense (N2) 720,000Adminstrative Exp. Fixed 200,000------------------------------------ $5,200,000 ------------------------------------------------------------------ Notes1. Beyond nomral capacity, fixed overhead cost increase $30,,000 for each 20,000 units or fraction thereof until a maximum of 640,000 units is reached 2. Selling expense are at 10% sale commission. Ralston pays only one half o the regualr sales commission rates on any sale of 20,000 or more units.…A company produced 500 units of a product and incurred the following costs. Direct materials, P8,000; direct labor, P10,000; overhead (20% fixed), P45,000. Is the sales value of 500 units is P102,000, what is the contribution margin rate? a.) 44% b.) 47% c.) 53% d.)74% Id appreciate if youd utilize full solutions so that I can understand it completely. Thank you