Pants Shorts $ 72 Fabric (6 yds. × $12; 3 yds. × $12) Variable direct manufacturing labor 36 20 10 Variable manufacturing overhead Fixed manufacturing cost allocated Total manufacturing cost 8 4 15 $115 $59 1. Suppose Fashion Fabrics can acquire all the fabric that it needs. What is the minimum price the com- pany should charge for the shorts? 2. Now suppose that the fabric is in short supply. Every yard of fabric Fashion Fabrics uses to make shorts will reduce the pants that it can make and sell. What is the minimum price the company should charge for the shorts? Required

Pants Shorts $ 72 Fabric (6 yds. × $12; 3 yds. × $12) Variable direct manufacturing labor 36 20 10 Variable manufacturing overhead Fixed manufacturing cost allocated Total manufacturing cost 8 4 15 $115 $59 1. Suppose Fashion Fabrics can acquire all the fabric that it needs. What is the minimum price the com- pany should charge for the shorts? 2. Now suppose that the fabric is in short supply. Every yard of fabric Fashion Fabrics uses to make shorts will reduce the pants that it can make and sell. What is the minimum price the company should charge for the shorts? Required

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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A manufacturing company is about to start manufacturing a new product, the FX200 The management accountant has provided the following information about the unit cost of the FX200: Direct labour (3 hours @R10/hr) Indirect labour (2 hours @R9/hr) Direct material (4 kg @R5/kg) Indirect material R10 Direct expenses R4 Indirect production expenses R7 Selling and distribution overhead R5 For one unit of FX200, calculate the following: a).The prime cost b).The total production cost c).The full cost
Fornelli, Inc. can produce 100 units of a component part with the following costs: Direct Materials $15,000 Direct Labor 6,500 Variable Overhead 16,000 Fixed Overhead 11,000 f Fornelli, Inc. can purchase the component part externally for $44,000 and only $4,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Select one: a. Buy and save $6,500 b. Buy and save $500 c. Make and save $2,500 d. Make and save $500 e. buy and save $2,500
Kirchoff.,manufactures a product with the following costs:Direct materials 18.00Direct labor 11.90Variable manufacturing overhead 2.10Fixed manufacturing overhead 1,422,000Variable SG&A expenses 3.60Fixed SG&A expenses 1,540,500The pricing are based on budgeted production and sales of 79,000 units per year. Required: Determine the selling price per unit, assuming a mark-up of 25% drsired under each of the following methods:1. Differential cost2. Minimum price allowed
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III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Answer all questions independently.Required:1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units?2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units?3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges…