Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers–$82,000 3. Property taxes on factory–$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000

Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers–$82,000 3. Property taxes on factory–$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Process Cost Systems

Section: Chapter Questions

Problem 17.3TIF

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Problem 18-1A Cost computation, classification, and analysis LO C2, C3 Skip to question [The following information applies to the questions displayed below.] Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $502 each. Costs 1. Plastic for casing—$19,000 2. Wages of assembly workers—$84,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$41,000 5. Drum stands (1,000 stands purchased)—$35,000 6. Rent cost of equipment for sales staff—$24,000 7. Upper management salaries—$185,000 8. Annual flat fee for factory maintenance service—$14,000 9. Sales commissions—$27 per unit 10. Machinery depreciation, straight-line—$39,000
Question 24 Bongani Limited manufactures a product that sells for R120. He manufactured and sold 12 500 units during the previous month. The following additional information, for this activity level, is available: Total direct material cost R281 250 Direct labour cost per hour R12 Direct labour hours needed per product 1 ½ Total variable manufacturing overheads R122 500 Sales commission (of the selling price) 2 ½ % Total fixed manufacturing overheads R360 000 Other fixed costs in total R420 000 Do the following calculations, according to the instructions given: Required: The workers at Bongani’s plant threaten to strike if they do not receive a pay increase of 10%. The sales people want a commission of 3%. The only supplier of the direct material has increased its price by 5% per unit. All other…
Required information The Foundational 15 (Algo) [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] Skip to question [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the…
Required information The Foundational 15 (Algo) [LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] Skip to question [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the…
Problem 13-22 (Algo) Special Order Decisions [LO13-4] Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 $ 660,000 Direct labor 10 440,000 Variable manufacturing overhead 3 132,000 Fixed manufacturing overhead 9 396,000 Variable selling expense 4 176,000 Fixed selling expense 6 264,000 Total cost $ 47 $ 2,068,000 The Rets normally sell for $52 each. Fixed manufacturing overhead is $396,000 per year within the range of 36,000 through 44,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 36,000 Rets through regular channels next year. A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the…
Vehicle Production Numbers Model 3/Y 292,731 Model S/X 13,109 Total 305,840 Estimated Total Annual Overhead $3,727,000,000 Possible Cost Driver Information Amount for Model 3 in Q4 2021 Amount for Model S in Q4 2021 Estimated Total Annual Amount Number of vehicles (units) 292,731 13,109 950,000 Direct labor hours 1,651,000 428,562 8,250,000 Number of machine hours 792,156 122,892 3,525,000 Factory square footage* 6,500,000 3,000,000 9,250,000 Number of setups 334,587 62,498 1,620,000 Number of inspections 6,425,896 1,825,694 33,150,000 Number of unique parts per vehicle* 7,400 8,800 8,750 Number of shipments 1,950 1,025 12,500 Number of engineering support calls 68,255 21,356 350,000 Number of parts 1,211,084,000 141,653,600 5,350,000,000 Number of engineering support hours 194,572 95,200 1,242,000 Number of unique…
Exercise 13-11 (Algo) Make or Buy Decision [LO13-3] Han Products manufactures 35,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 3.90 Direct labor 12.00 Variable manufacturing overhead 2.10 Fixed manufacturing overhead 9.00 Total cost per part $ 27.00 An outside supplier has offered to sell 35,000 units of part S-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $85,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
problem 5 Marites Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50; Direct Labor for 2 hours @ P8/hr is P16; Manufacturing overhead for 2 hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The variable overhead spending variance must be:
X Limited Corporation making one product only, the standard cost of which is as follow: 2016 2017 2018 Direct material 35,000 36000 48,000 Direct labor 30,000 33000 42,000 Variable manufacturing overhead 25,000 24000 54,000 Variable marketing costs 10,000 15000 14,000 Total variable costs 100,000 122000 158,000 - The fixed manufacturing overhead costs $300,000 - Fixed marketing costs $200,000 - The selling price $200 per unit sold - The number of units produced and sold were: 2016 2017 2018 Beginning inv. 1000 …… 3000 Production…
Required information The Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 32 $ 16 Direct labor 24 19 Variable manufacturing overhead 10 9 Traceable fixed manufacturing overhead 20 22 Variable selling expenses 16 12 Common fixed expenses 19 14 Total cost per unit $ 121 $ 92 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your…
28 Williams Company reports production costs for 2015 as follows: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Williams Company’s product costs for 2015 amount to: Group of answer choices $995,000 $770,000 $825,000 $920,000
Q15. 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 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.