Information on Wilbur Company's direct labor costs is as follows: P3.75 Standard direct labor rate 3.50 Actual direct labor rate 10,000 Standard direct labor hours Direct labor usage (efficiency) 4,200 variance-unfavorable What were the actual hours worked rounded to the nearest hour? a. 10,714 Ob. 11,120 C. 11,200 O d. d. 11,914

Information on Wilbur Company's direct labor costs is as follows: P3.75 Standard direct labor rate 3.50 Actual direct labor rate 10,000 Standard direct labor hours Direct labor usage (efficiency) 4,200 variance-unfavorable What were the actual hours worked rounded to the nearest hour? a. 10,714 Ob. 11,120 C. 11,200 O d. d. 11,914

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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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?
Jester Company had unit contribution margin on 3.60 and fixed costs of 29,664. Income was 2,520. What was the margin of safety in units? a. 630 b. 700 c. 8,940 d. 7,540
Cushing, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. What was last years per unit product cost? a. 1.39 b. 4.40 c. 4.43 d. 3.01
The total cost for monthly supervisory cost in a factory is 4,500 regardless of how many hours the supervisor works or the quantity of output achieved. This cost a. is strictly variable. b. is strictly fixed. c. is a mixed cost. d. is a step cost. e. cannot be determined from this information.
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.
The following cost details relate to one unit of product Zen. (£) Variable materialsVariable labourVariable production overheads Fixed production overhead Variable selling overhead Fixed selling overheadTotal cost 20.40 18.20 3.60 25.88 15.58 7.56 91.22 In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be? a) £288,900 b) £211,000 c) £193,000 d) £456,100
From the following information, prepare an Income Statement under: (a) Marginal Costing; (b) Absorption Costing. Particulars Product (RO) X Y Z Direct Material 5,500 20,000 2,000 Direct Wages 7,000 7,000 1,000 Factory Overheads - Fixed 2,000 1,000 1,500 Factory Overheads - Variable 1,900 8,000 2,500 Selling Overheads - Fixed 1,000 500 400 Selling Overheads - Variable 1,000 4,000 1,000 Sales 22,000 41,000 12,000 Fixed factory overhead and fixed selling overhead apportioned to products X, Y and Z on equitable bases.
Given the following cost and activity observations for George Company’s utilities, use the high-low method to determine George’s variable utilities cost per machine hour. Cost Machine Hours May $16,500 105,000 June 18,000 120,000 July 16,000 100,000 August 17,500 117,000 a. $10.00 b. $0.10 c. $100.00 d. $1.00
17. This is Cost Accounting. Explain briefly and answer. The following direct labor information pertains to the manufacture of Part J35:Number of hours required to make a part 2.5 DLHNumber of Direct workers 75Number of total productive hours per week 3000Weekly wages per worker P1,000 Laborers’ fringe benefits treated as direct labor costs 25% of wagesWhat is the standard direct labor cost per unit of Part J35? 62,500 78,125 41,670 84,125 74,350
The following information relates to Wal-Mart Corporation for the past accounting period Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 .10 .30 .25 .20 .15 S2 80,000 .20 .40 .20 .20 S3 45,000 .60 .35 .05 P1 78,000 P2 99,000 P3 45,000 __________25. How much is the total overhead costs in P3 after the allocation under direct method?