Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the output is likely to be defective. Actual output of the goods is 4400units. The rectification of defective units costs Rs 4 per unit You are required to - Calculate the cost per unit
Q: Being a finance Manager advice the top management that KPR should manufacture the AQ product…
A: A) The decision whether KPR should manufacture the AQ product internally or they should buy AQ…
Q: The Maria Company estimated its factory overhead of the next period at P160,000. It is estimated…
A: ABC costing system uses more than one recovery rate to allocate the various costs. The allocation of…
Q: JKL Ltd has prepared the following cost estimates for the manufacture of a subassembly component…
A: If the company manufactures the cost of per unit is $38 If the company buys the per unit cost is $32…
Q: NUBD Co. has 24,000 defective units of a product that cost P8 per unit to manufacture, and can be…
A: Number of defective units = 24,000 Cost to produce per unit = P8 cost of rework per unit = P2…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Analyse the costs! (Cost difference)
A: Based on the data provided for the Cost Inc company, we can calculate the cost variances for labour…
Q: GEM Limited has a single product Flicks. The company normally produces and sells 80,000 units of…
A:
Q: Waterway Industries produces a product that requires 2.60 pounds of materials per unit. The…
A: Standard costing: Under standard costing the cost will be estimated at the beginning based on past…
Q: Road Master Shocks has 15,000 units of a defective product on hand that cost $80,000 to manufacture.…
A: This question deals with the preparing schedule to show selling defective units as scrap or rework.…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental cost = Incremental units×Variable cost per unit
Q: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard…
A: Linear programming is used to find an optimal solution when there could be multiple mixes.
Q: A company manufactures 1000units of outputs using 5000units of materials @ GH¢30 each, and pays…
A: Total product cost means the cost incurred to produce the goods and total expenses means the total…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental costs are always comprised of Variable costs . Total Variable cost in producing 100…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Total variable cost = direct material + direct labor + variable MOH + Variable selling costs…
Q: Motor Company manufactures 10,000 units of Part M-I each year for use in its production. The…
A: Relevant cost to make = Direct materials + Direct labor + Variable manufacturing overhead +…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental cost can be defined as the increase in the cost of production of goods with the increase…
Q: Table shows information related to cost incurred to produce 500 units. (All values in OMR) Total…
A: The profits can be arrived from the income statement of the company. All the revenues, and expenses…
Q: The KIA Motor Company estimated its factory overhead for the next period at Rs. 1,600,000 It is…
A: The details of Manufacturing concern are given Required Compute Applied Fixed overhead rate on the…
Q: ABC Company has only 25,000 hours of machine time each month to manufacture its two products.…
A: Calculation of contribution margin per machine hour = Contribution per unit/Machine hours per unit…
Q: ) calculate the cost per unit b) reflect the abnormal loss and cost of rectification in the…
A: Unit introduced= 5000 units @ Rs. 10,000 Wages expense= Rs. 10,000 Overhead Expense= Rs. 8000 % of…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental cost = Incremental units×Variable cost per unit
Q: Rainbow Ltd manufactures a product that has the following costs per unit: Direct labour £11…
A: Sales Revenue means that amount which a company has received or will receive in the future on…
Q: A company has already incurred $5,000 of costs in producing 6,000 units of Product XY. Product XY…
A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…
Q: Highlander Company uses 10,000 units of a part in its production process. The costs to rt are: DM…
A: If the cost of making part is greater than purchase price of supplier, it better to buy such part…
Q: HASF Glassworks makes glass flanges for scientific use Material cost Rs.10 per flange and the glass…
A: 1. Working note: Calculate the material cost per unit. Calculate the wages per unit.
Q: The KIA Motor Company estimated its factory overhead for the next period at Rs. 1,600,000. It is…
A: The Company estimated its factory overhead for the next period at Rs. 1,600,000. It is estimated…
Q: The Molis Company has the capacity to produce 15,000 haks each month. Current regular production and…
A: Here in this question, we are required to calculate the operating profit under special order…
Q: The Molis Company has the capacity to produce 15,000 haks each month. Current regular production and…
A: There are two types of costs incurred in the business. One is fixed costs which will not change with…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Variable Costs and fixed costs are the two main types of costs that a company incurs when producing…
Q: A division manager at the Erlinda Corporation is interested in a flexible rcise 4-30 pudget for…
A: Under high low method, variable cost per unit will be calculated by taking difference of costs at…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental Cost per unit = Sum of Variable Cost / Units produced Incremental Cost of additional…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Variable cost of 100 units : Direct material cost 500 Direct labor cost 1800 Variable…
Q: Shosalosa Company produces a part that is used in the manufacture of one of its products. The costs…
A: In terms of accountancy, make or buy analysis helps a business firm in deciding whether the business…
Q: Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard…
A: a. Determine by graphical means the optimal mix of Y and Z at Mercury Bowie Bhd Sdn Bhd. (Calculate…
Q: A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine…
A:
Q: Bang Inc has the following cost details: per kg. Material cost= 200 Direct labour= 40…
A: Valuation of Inventories are the accounting standards used for valuation of inventories in which the…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Increase in units=102-100=2 units
Q: Mercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard…
A: 1. Assuming, “a” as the number of units of Product Y; “b” as the number of units of Product z.…
Q: The fixed cost of a ceramic company is 1800 OMR. The raw material cost is 12 RO per unit, cost of…
A: Total cost = (Raw material + labor cost + overhead cost) x no. of units produces + Fixed costs
Q: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…
A: EOQ or Economic Order Quantity is the order quantity that is ideal for a company to maintain with…
Q: The following is information for Prisma products issued by Tekun Sdn. Bhd. (TSB) RM Sales (3,000…
A: SOLUTION CALCULATION OF REVISED FIXED COST = 249600+72000. = 321600. CALCULATION OF REVISED VARIABLE…
Q: The fixed costs in a manufacturing company is RO 3000. The cost of raw material is 4 RO per unit,…
A: Formula: Total cost =Variable cost + fixed cost Both variable and fixed cost derives the total cost.
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: Decision making is a process or an act of deciding something using rational thinking, intuition and…
Q: a) GEM has an opportunity to sell 10 000 units to an overseas customer. Import duties and other…
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: NUBD Co. has only 25,000 hours of machine time each month to manufacture its two products. Product X…
A: Product X Product Y Contribution margin P50 P64 Divide by: machine hours per unit 5 8…
Q: KrishnaGems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. Themachine has a five yearlife…
A: If the project generates a negative net present value then, the project should not be accepted. On…
Q: mickey comapny uses 5000 units of pat Z each year as a component in the assembly of one of its…
A: Under make or buy decision, If the cost savings are more than the cost to buy external source then…
Mehta Ltd introduced 5000 units in a process at a cost of Rs10000.The wages and
overheads incurred are Rs 10000 and Rs8000 respectively. It is expected that 10% of the
output is likely to be defective. Actual output of the goods is 4400units.
The rectification of defective units costs Rs 4 per unit
You are required to -
Calculate the cost per unit
Step by step
Solved in 2 steps
- oncorde Ltd has been asked to quote a price for an order of 8 units of Product Delta. Making this product will require skilled labour, which is currently in hort supply and is paid £15 an hour. If the order is accepted, all necessary labour will have to be transferred from existing work. As a result, other orders will be lost. It is estimated that for each hour transferred to this contract £45 will be lost (calculated as lost sales revenue £75, less materials £15 and labour 15). The production manager believes that, owing to a learning process, the time taken to make each unit will reduce, from 20 hours to make the first one, by one hour a unit made. (That is 20 hours to make the first one, 19 hours to make the second, 18 hours to make the third one and so on.) What is the total relevant cost of skilled labour for the purposes of the order? The relevant cost for skilled labour will be will be £. ... Time Remaining: 00:43:50 NextThe “ABM” Company sells pencil cases for $15 each. Manufacturing cost is $4.60 per pencil case; marketing costs are $1.40 per pencil case; and royalty payments are 20% of the selling price. The fixed cost of preparing the pencil cases is $18 000. Capacity is 15 000 pencil cases. Compute the unit contribution margin and contribution rate. Compute the break-even point in units Determine the break-even point in units if fixed costs are increased by 20%. 4. Determine the break-even point in units if the selling price is increased by 30%, while fixed costs are increased by 20%.Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows thatA. A normal loss of 600kg is incurredB. There is an abnormal gain of 100kgC. There is an abnormal loss of GH¢2632D. Cannot determine without further details
- Jorioz Co makes joint products X and Y. $120,000 joint processing costs are incurred. At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with selling prices of $1.20 for X and $1.50 for Y. The units of X could be processed further to make 8,000 units of product Z. The extra costs incurred in this process would be fixed costs of $1,600 and variable costs of $0.50 per unit of input. The selling price of Z would be $2.25. What would be the outcome if product X is further processed? O $600 loss $400 gain O $3,900 gain O $1,600 lossCrane Company uses 9000 units of Part A in producing its products. A supplier offers to make Part A for $5. CraneCompany has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the relevant cost of buying Part A from the supplier is $72000. $45000. $27000. $0.The fixed costs for the current year are Rs. 100,000. The estimated sales for the period are valued at Rs. 240,000. The variable cost per unit for the single product made is Rs. 8. If each unit sells at RS.30. and the number of units involved coincides with the expected volume of output, construct the Breakeven Chart by using scale paper then : (i) Determine the breakeven point. (ii) Find out above how many units, the company should produce to seek profit. (iii) Determine the profit earned at a turnover of Rs. 170,000. (iv) Find the margin of safety. (v) Calculate the angle of incidence.
- Noblesya Co. produces 1,000 parts per year, which are used in the assembly of one ofits products. The unit product cost of these parts are: Variable manufacturing cost,P12.00; fixed manufacturing cost, P9.00. The part can be purchased from an outsidesupplier at P20.00. If the part is purchased from the outside supplier, two thirds of thefixed manufacturing costs can be eliminated. What would be the annual impact on thecompany’s net operating income as a result of buying the part from the outside supplier? provide solutionCompany A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate what is the company's total amount of common fixed expenses.Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company normally produces and sells 60000 units of product B and 80000 units of product A per year.…
- Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company expects to produce and sell 90000 units of product B during the current year. A new customer…Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company expects to produce and sell 80,000 units of product A during the current year. A new…Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company's customers would buy a maximum of 80,000 units of product A and 60,000 units of product B.…