Lazaro Company produces "Excellent". To produce Excellent, Lazaro will require 15 units of Material X at P8 per unit, 10 units of Material Y at P7 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. If only 460,000 units were sold out of production 500,000 units of Excellent using full absorption costing method, what is the value of ending inventory? P 7,600,000 O P15,600,000 O P15,680,000 None of the above

Lazaro Company produces "Excellent". To produce Excellent, Lazaro will require 15 units of Material X at P8 per unit, 10 units of Material Y at P7 per unit, 2 direct labor hours at P50 per hour, and variable factory overhead P100 per unit and annual fixed factory overhead P1,000,000. If only 460,000 units were sold out of production 500,000 units of Excellent using full absorption costing method, what is the value of ending inventory? P 7,600,000 O P15,600,000 O P15,680,000 None of the above

Name: Lazaro Company produces"Excellent". To produceExcellent, Lazaro will
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Description: Lazaro Company produces"Excellent". To produceExcellent, Lazaro will require 15units of Material X at P8 perunit, 10 units of Material Y at P7per unit, 2 direct labor hours atP50 per hour, and variablefactory overhead P100 per unitand annual fixed f

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
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Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
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