Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:Standard price and variable costsSales price2$90.00Materials cost18.00Labor cost9.00Overhead cost12.60Selling, general, and administrative costsPlanned fixed costs14.40Manufacturing overheadSelling, general, and administrative$270,000108,000Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow.Actual price and variable costsSales priceMaterials cost$87.0018.408.80Labor costOverhead cost12.70Selling, general, and administrative costs14.00Actual fixed costsManufacturing overheadSelling, general, and administrative$250,000116,000Requireda. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable(U). (Select "None" if there is no effect (i.e., zero variance).)Flexible BudgetVariancesSales revenueVariable manufacturing costsMaterialsLaborOverheadSelling, general & administrativeContribution marginFixed costsManufacturing overheadSelling, general & administrativeNet income

Name: Narcisco Publications established the following standard price and co
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:Standard price and variable costsSales price2$90.00Materials cost18.00Labor cost9.00Overhead cost12.60Selling, general, a

budget is prepared by the business in order to know expenses incurred and revenue earned by the…

Business

Accounting

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price $ 90.00 Materials cost 18.00 Labor cost 9.00 Overhead cost Selling, general, and administrative costs Planned fixed costs 12.60 14.40 Manufacturing overhead Selling, general, and administrative $270,000 108,000 Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. Actual price and variable costs Sales price Materials cost $ 87.00 18.40 Labor cost 8.80 Overhead cost 12.70 Selling, general, and administrative costs Actual fixed costs 14.00 Manufacturing overhead Selling, general, and administrative $250,000 116,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general & administrative Contribution margin Fixed costs Manufacturing overhead Selling, general & administrative Net income

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces: Standard price and variable costs Sales price $ 90.00 Materials cost 18.00 Labor cost 9.00 Overhead cost Selling, general, and administrative costs Planned fixed costs 12.60 14.40 Manufacturing overhead Selling, general, and administrative $270,000 108,000 Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. Actual price and variable costs Sales price Materials cost $ 87.00 18.40 Labor cost 8.80 Overhead cost 12.70 Selling, general, and administrative costs Actual fixed costs 14.00 Manufacturing overhead Selling, general, and administrative $250,000 116,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general & administrative Contribution margin Fixed costs Manufacturing overhead Selling, general & administrative Net income

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

See similar textbooks

Similar questions

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?
Thomas Corporation produces heating units. The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = 45 C = 4.50 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total cost associated with an order size of 250 units. 2. Calculate the EOQ and its associated ordering cost, carrying cost, and total cost. Compare and comment on the EOQ relative to the current order quantity. 3. What if Thomas enters into an exclusive supplier agreement with one supplier who will supply all of the demands with smaller, more frequent orders? Under this arrangement, the ordering cost is reduced to 0.45 per order. Calculate the new EOQ and comment on the implications.
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 Arrez Company on the production of DVD cases: direct materials, $1,450: direct labor. $15.50; manufacturing overhead, applied at 150% of direct labor cost; selling expenses. $1,550; and administrative expenses, $950. The direct labor hours worked for the month are 90 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. 111,450 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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?
Bethany Company has just completed the first month of producing a new product but has not yet shipped any of this product. The product incurred variable manufacturing costs of 5,000,000, fixed manufacturing costs of 2,000,000, variable marketing costs of 1,000,000, and fixed marketing costs of 3,000,000. Under the variable costing concept, the inventory value of the new product would be: a. 5,000,000. b. 6,000,000. c. 8,000,000. d. 11,000,000.
Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Grainger Company produces only one product and sells that product for $100 per unit. Cost information for the product is: Selling expenses are $4 per unit and are all variable. Administrative expenses of $20,000 are all fixed. Grainger produced 5,000 units; sold 4,000; and had no beginning inventory. A. Compute net income under absorption costing variable costing B. Reconcile the difference between the income under absorption and variable costing.
Zena Technology sells arc computer printers for $55 per unit. Unit product costs are: A special order to purchase 15,000 arc printers has recently been received from another company and Zena has idle capacity to fill the order. Zena will incur an additional $2 per printer for additional labor costs due to a slight modification the buyer wants made to the original product. One-third of the manufacturing overhead costs is fixed and will be incurred no matter how many units are produced. When negotiating the price, what is the minimum selling price that Zena should accept for this special order?
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.
A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price would be 11.50). The order would require specialized materials costing 4.00 per unit. Direct labor and variable factory overhead would cost 2.15 per unit. Fixed factory overhead is 1.20 per unit. However, the company has excess capacity, and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing 1,300. Which of the following is relevant to the special order? a. 11.50 b. 1.20 c. 7.35 d. 8.90