ok int rences Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses. 6. Insurance on Nucor's corporate headquarters. 7. Salary of a supervisor overseeing production of printers at Ricoh. 8. Commissions paid to automobile salespersons. 9. Depreciation of factory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in Tesla electric vehicles. Cost Classifications for Predicting Cost Behavior Cost Classifications for Preparing Financial Statements

ok int rences Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by a dental office. 3. Apples processed and canned by Del Monte. 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses. 6. Insurance on Nucor's corporate headquarters. 7. Salary of a supervisor overseeing production of printers at Ricoh. 8. Commissions paid to automobile salespersons. 9. Depreciation of factory lunchroom facilities at a General Electric plant. 10. Steering wheels installed in Tesla electric vehicles. Cost Classifications for Predicting Cost Behavior Cost Classifications for Preparing Financial Statements

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 4MCQ

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Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item Predicting Cost Behavior Preparing Financial Statements 1.Hamburger buns in a Wendy’s restaurant. 2.Advertising by a dental office. 3.Apples processed and canned by Del Monte. 4.Shipping canned apples from a Del Monte plant to customers. 5.Insurance on a Bausch & Lomb factory producing contact lenses. 6.Insurance on IBM’s corporate headquarters. 7.Salary of a supervisor overseeing production of printers at Hewlett-Packard. 8.Commissions paid to automobile salespersons. 9.Depreciation of factory lunchroom facilities at a General Electric plant. 10.Steering wheels installed in BMWs.
Question content area top Part 1 Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a onetimeonly special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $120 Direct labor 100 Manufacturing support 115 Marketing costs 85 Fixed costs: Manufacturing support 155 Marketing costs 55 Total costs 630 Markup (40%) 252 Targeted selling price $882 What is the full cost of the product per unit? A. $420 B. $252 C. $882 D. $630
I Can't Have Nice Things (CHNT) manufacturers expensive products that will subsequently be destroyed by kittens. They intend to sell 8,600 units in the coming period. Relevant costs are provided below. Selling price per unit: $175 Direct materials and labor per product: $78 Sales commission per product: 15% Total fixed factory overhead: $126,000 Total fixed SG&A expenses: $211,000 Using the information provided, what is the total operating income? Please round to two decimal places.
Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete thecalculations listed below.• Calculate the value of ending inventory under full or absorption costing.• Calculate the value of ending inventory under variable costing.Which method you think is more helpful to managers and why. Cookie Business Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable manufacturing overhead $ 0.40 Total variable manufacturing costs per unit $ 2.00 Fixed manufacturing overhead per year $ 139,000.00 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $ 50,000.00 Fixed administrative costs per year $ 65,000.00 Selling price per cookie $ 3.75 Number of cookies produced 2,780,000 Number of cookies sold 2,600,000 Full (absorption) costing : Full…
Please help with the question number 4,5, and 6. Thank you Gigabyte, Inc. manufactures three products for the computer industry: Gismos (product G): annual sales, 8,000 units Thingamajigs (product T): annual sales, 15,000 units Whatchamacallits (product W): annual sales, 4,000 units The company uses a traditional, volume-based product-costing system with manufacturing over-head applied on the basis of direct-labor dollars. The product costs have been computed as follows: Product G Product T Product W Raw material ..........................$ 35.00 $52.50 $17.50 Direct labor 16(.8 hr.at $20) 12(.6 hr at $20) 8(.4 hr at $20) Manufacturing overhead* ......140.00 105.00 70.00 Total product cost ..................$191.00 $169.50 $95.50 *Calculation of predetermined overhead rate: Manufacturing overhead budget: Machine…
Activity Levels and Cost Drivers Steve’s Slop Shop, a small hamburger shop, has identified theresources used in its operations (assume each customer’s order is a batch for this example):a. Breadb. Hourly workers that cook hamburgersc. Store rentd. Ground beefe. Catsupf. Advertising for Triple-Burger specialg. Salary for the store managersh. Utilitiesi. $1-off-coupon for each orderj. Bags for each orderRequired1. Classify its costs as unit-level, batch-level, product-level, or facility-level costs.2. Suggest a possible cost driver for each of the above items.
Company BB manufactures face masks with estimated cost data and other information as follows: Total Fixed cost and expenses P 777,600 Selling price P 10 Variable Cost per unit P 8 The number of units Company BB must sell to break-even is 388,800 units 518,400 units 583,200 units 972,000 units Answer A Group of answer choices 1 2 3 4
PLEASE ANSWER QUESTION B Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table. Unit manufacturing costs Variable materials $ 59 Variable labor 84 Variable overhead 34 Fixed overhead 69 Total unit manufacturing costs $ 246 Unit marketing costs Variable 34 Fixed 79 Total unit marketing costs 113 Total unit costs $ 359 Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $388 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself. Required: a. Market research estimates that volume could be increased to…
Question 2: How much of each product should be produced to maximize net operating income? Holton Company makes three products in a single facility. Data concerning these products follow: Product A Product B Product C Selling Price per Unit $95.80 74.90 113.40 Direct Materials $41.80 $41.80 $68.20 Direct Labor $30.10 $13.40 $17.20 Variable Manufacturing Overhead $5.80 $4.50 $8.00 Variable Selling Cost per Unit $7.70 $3.20 $4.90 Mixing Minutes per Unit 13.70 3.00 2.00 Monthly Demand in Units 3,000 1,000 2,000
Dough, Re, Mi Inc. sells many different types of cookie dough. The company is deciding whether to continue making its own dough or to outsource. If the company outsources, they will eliminate all of the variable overhead and 30% of the fixed manufacturing overhead. Use the information below to determine whether Dough, Re, Mi Inc. should outsource or not. Data: Units Per unit Relevant? Yes or No Sales price (per unit) 5,450 $ 104.00 Direct materials (per unit) N/A 21.00 Direct labor (per unit) N/A 18.00 Variable manufacturing overhead (per unit) N/A 15.00 Fixed manufacturing overhead (MOH) (per month) : N/A 21.00 Avoidable fixed MOH (per month) N/A Unavoidable fixed MOH (per month) N/A Sales commissions (per unit) N/A 4.00 Advertising costs (per month) N/A 1.60…
QUESTION 5 Goose Company produces two products, namely goose down pillows and goose down duvets. The pillows and duvets are filled with high quality goose down, which they get from their goose farm. The goose farm is situated in the Karoo. You are provided with the following information regarding the standard selling price, unit cost and contribution margin ratio for the products: Note Pillows Duvets Selling price per product R350 R1 400 Direct materials: ● Goose down 1 R110 R450 ● White fabric cover 2 R52 R150 ● Thread 3 ? ? Direct labour 4 ? ? Manufacturing overhead cost 5 R25 R50 Selling and administrative costs 6 R10 R12 Contribution margin ratio 40% ? Note 1: Goose down When the goose down arrives at the manufacturing plant, it goes through three pre-wash processes to get it ready for use in the two products. The total cost of the goose down…
Cost Behavior Scooby's Pet Food Corp. produces dog treats for our furry friends. Listed below are selected cost items for the treat production. Classify each cost as either fixed or variable, and either a product or a period cost by placing an x in the appropriate boxes. Cost by behavior Cost by function Variable Fixed Product Period Peanut butter for treats………… Baking labor................................. Factory property taxes……………. Human Resources staff salaries…………. Sales office rent………………… Accounting manager's salary……………. Depreciation (straight-line) on factory equipment………………………… Sales commissions………………