Lavage Rapide Is a Canadlan company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per Heath Can Unchad
Q: Classifying Variable and Fixed Costs and Product and Period Costs Below are listed various costs…
A: Fixed and Variable Costs in Manufacturing: Variable costs refer to the costs of manufacturing that…
Q: The PC Works assembles custom computers from components supplied by various manufacturers. The…
A: Manufacturing costs: Manufacturing cost is the sum of all resources consumed in the process of…
Q: Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces…
A: Activity based costing is the different approach to assign overhead where the overheads are based on…
Q: Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the…
A: Make optical switch Outsource optical switch Difference (make-difference) Variable cost:…
Q: For each of the following, indicate whether the cost would typically be considered product or period…
A: Product costs are the costs that are directly involved in the production of a product. For a…
Q: Identify each of the costs below as being either variable or fixed. 1. Leather used in the…
A: In the context of the given question, we are required to classify each of the costs as being either…
Q: For each cost, indicate whether it would most likely be classified as direct labor, direct materials…
A: Manufacturing costs: Manufacturing cost is the sum of all resources consumed in the process of…
Q: The PC Works assembles custom computers from components supplied by various manufacturers. Thec…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on…
A: Fixed expenses remain fixed in a period, variable expenses vary with each production unit.
Q: Water Works Plumbing Company is a small owner-managed plumbing services company that serves the…
A: Fixed cost refers to those cost which remains same at each level i.e. fixed cost doesn't changes…
Q: A car manufacturer incurs the following costs. Classify each cost as either a product or period…
A: The costs are classified as direct, indirect and factory overhead cost.
Q: Baird Electronics currently produces the shipping containers it uses to deliver the electronics…
A: a. Total relevant cost = Material + Labor + overhead + Product level cost =6500+6400+4100+9600*1/3 =…
Q: Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces…
A: There are two types of costing methods that are in use. One is traditional costing method and other…
Q: BlendIn, Inc. manufactures covers for blenders and toaster ovens. Because its product lines are…
A: Given the following information: Indirect labor cost: $125,000 Depreciation: $40,000 Factory rent…
Q: Lakeview Engine Inc. produces engines for the watercraft industry. An outside manufacturer has…
A:
Q: ) Gala Company is a manufacturer of laptop computers. Various co es associated with its operations…
A: Period cost is the cost which is not directly related to the process of production. Its example are…
Q: Kando Company currently pays $14 per unit to buy a part for a product it manufactures. Instead,…
A: The question is based on the concept of Cost Accounting.
Q: Chen Company's Small Motor Division manufactures a number of small motors used in household and…
A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…
Q: Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit…
A: Since multiple questions are posted only the first question (Hummer Company) is answered. kindly…
Q: Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give…
A: Fixed cost – Which cost do not directly change with increase or decrease of product. It means the…
Q: Kizzie's Crepes Co. produces world famous crepes. The company's crepes are produced via its Mixing…
A: SOLUTION - 1- COST DRIVER- A COST DRIVER IS THE UNIT OF AN ACTIVITY THAT CAUSES THE CHANGES IN…
Q: Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be…
A: Direct Material cost: Direct material cost is the cost of the material which is directly involved in…
Q: Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturingunit…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate…
A: Activity-based costing: This costing is an accounting methodology that is based on assigning the…
Q: Classify the following costs incurred in the manufacturing of cookie bars as either (a) product cost…
A: There are different types of costs. It can be based on their behaviors like fixed and variable cost,…
Q: A company is looking to launch a new product line, which requires new facilities to be used and at…
A: Costing is defined as a process in which the detailed information is gathered related to the costs…
Q: Soneva Enterprise manufactures two models of boats- Regular & Deluxe, using a combination of hand…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: A Company that manufactures custom-made machinery routinely incurs sizable long distance telephone…
A: The cost can be of two types product cost and period cost. Product cost is the cost used to produce…
Q: Penbirch Electronics manufactures most of the components that make up its products. A company has…
A: When business has two alternatives one is to manufacture the product inside and other is to purchase…
Q: Dartmouth Corporation manufactures two models of motorized go−carts, a standard and a deluxe model.…
A: Traditional Costing System: An accounting method useful in predicting the profits of the company.…
Q: All are examples of a conversion cost EXCEPT: a. All the examples given are conversion costs b. The…
A: Conversion cost: This is the cost incurred to convert the raw materials into finished goods. These…
Q: Southward Company has implemented a JIT flexible manufacturing system. John Richins, controller of…
A: Predetermined conversion cost rate of raditor cell =Total conversion costProduction…
Q: Thomas Traders WLL provide you with the following cost items. Analyse the cost description in Column…
A: Direct material means the material used direct in production of any product. Direct labor means the…
Q: DK manufactures three products, W, X and Y. Each product uses the same materials and the same type…
A: Labor hour per unit W=Per unitPer hour=$4010=$4
Q: Thomas Traders WLL provide you with the following cost items. Analyse the cost description in Column…
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: A company is looking to launch a new product line, which requires new facilities to be used and at…
A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…
Q: Listed here are product costs for the production of soccer balls. Classify each cost (a) as either…
A:
Q: Buzz Ltd is a toy manufacturer. For many years Buzz Ltd produced and sold just one toy, a plastic…
A: Activity Based Costing (ABC) ABC is a costing method that assign overhead costs to related related…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility…
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Chen Company's Small Motor Division manufactures a number of small motors used in household and…
A: Minimum transfer price = Variable cost per unit + Opportunity cost If the Small Motor Division…
Q: Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of…
A: Cost Cost classification a Factory overhead cost
Q: The PC Works assembles custom computers from components supplied by various manufacturers. The…
A: Manufacturing costs: Manufacturing cost is the sum of all resources consumed in the process of…
Q: Poly products LLC set up machines for producing various products like spring mattresses and beds,…
A: Under Activity-based costing, costs are allocated based on cost drivers consumed by each product…
Q: Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces…
A: Overheads are the all indirect cost which are incurred in the process of selling the goods.…
Q: Listed here are product costs for the production of soccer balls. Identify each cost (a) as either…
A: Fixed Cost that cost which does not changes with changes in level of Activity Variable cost is That…
Q: A company is looking to launch a new product line, which requires new facilities to be used and at…
A: Absorption costing is the method of determining the cost of a product which includes all the cost of…
Step by step
Solved in 2 steps with 1 images
- Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)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 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?
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity 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) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?
- York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.
- 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?Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22Preparation of Income Statement: Manufacturing Firm Laworld Inc. manufactures small camping tents. Last year, 200,000 tents were made and sold for 60 each. Each tent includes the following costs: The only selling expenses were a commission of 2 per unit sold and advertising totaling 100,000. Administrative expenses, all fixed, equaled 300,000. There were no beginning or ending finished goods inventories. There were no beginning or ending work-in-process inventories. Required: 1. Calculate the product cost for one tent. Calculate the total product cost for last year. 2. CONCEPTUAL CONNECTION Prepare an income statement for external users. Did you need to prepare a supporting statement of cost of goods manufactured? Explain. 3. CONCEPTUAL CONNECTION Suppose 200,000 tents were produced (and 200,000 sold) but that the company had a beginning finished goods inventory of 10,000 tents produced in the prior year at 40 per unit. The company follows a first-in, first-out policy for its inventory (meaning that the units produced first are sold first for purposes of cost flow). What effect does this have on the income statement? Show the new statement.