Question 3Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is asfollows:Product-Costing DataRegular50,000RM369,00045,00090,0005Activity Usage MeasuresUnits produced per yearDeluxeTotal5,000RM39,0005,00010,00055,000RM408,00050,000100,00015Prime costDirect labor hoursMachines hoursProduction runsNumber of moves1012060180Activity Cost Data (Overhead Activities)Activity driverProduction runsNumber of movesCost (RM)60,00030,00050,00040,000180,000ActivitySetupsMaterials handlingPowerMachines hoursDirect labor hoursTestingTotalRequired:a) Calculate the consumption ratios for each activity.b) Choose group activity based on the consumption ratios.c) Calculate a rate for each pooled group of activities.

Answered: Image /qna-images/answer/be24ee3d-a583-43f0-9d0b-fba1c7fb2d65.jpg

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Deluxe Activity Usage Measures Units produced per year Prime cost Regular 50,000 RM369,000 45,000 90,000 5 Total 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 Direct labor hours Machines hours Production runs Number of moves 10 15 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) Activity Setups Materials handling Activity driver Production runs Number of moves 60,000 30,000 50,000 40,000 180,000 Power Machines hours Testing Total Direct labor hours Required: a) Calculate the consumption ratios for each activity. b) Choose group activity based on the consumption ratios. c) Calculate a rate for each pooled group of activities.

Question 3 Ghaz Company produces two types of sound units: Deluxe and Regular. Activity data is as follows: Product-Costing Data Deluxe Activity Usage Measures Units produced per year Prime cost Regular 50,000 RM369,000 45,000 90,000 5 Total 5,000 RM39,000 5,000 10,000 55,000 RM408,000 50,000 100,000 Direct labor hours Machines hours Production runs Number of moves 10 15 120 60 180 Activity Cost Data (Overhead Activities) Cost (RM) Activity Setups Materials handling Activity driver Production runs Number of moves 60,000 30,000 50,000 40,000 180,000 Power Machines hours Testing Total Direct labor hours Required: a) Calculate the consumption ratios for each activity. b) Choose group activity based on the consumption ratios. c) Calculate a rate for each pooled group of activities.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

See similar textbooks

Similar questions

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. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
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?
Subject: Cost management & accounting MCQs: 1) Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unitFixed costs: Marketing and administrative $ 400,000 per periodManufacturing overhead $ 200,000 per periodVariable costs: Marketing and administrative $ 50 per unitManufacturing overhead $ 80 per unitDirect labor $ 100 per unitDirect materials $ 200 per unitWhat is the total manufacturing cost per unit? a) $380 b) $480 c) $730 d) $430 2) Vegas Company has the following unit costs: Variable manufacturing overhead $ 25 Direct materials 20 Direct labor 19 Fixed manufacturing overhead 12 Variable marketing and administrative 7 Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross margin?…
Question 12How much is the total cost to manufacture products with variable manufacturing cost per unit of P10 and total fixedcost of P30,000 at 2,000 units production level.A. P50,000B. P40,000C. P30,000D. P60,000 Question 13All costs related to the manufacturing function in a company are:A. Prime costB. Conversion costC. Direct costD. Product cost Question 14In job-order cost system, the use of direct materials previously purchased usually is recorded as an increase in:A. Material accountB. Factor overhead appliedC. Factor overhead accountD. Work-in-process account Question 15The wages of factory janitorial staff should be classified as: A. Period costB. Factory overhead costC. Prime costD. Direct labor cost
Resolve using this format: 1. High-low method Units CostHigh volumeLow volumeChangeVariable cost per unit: ÷ = $______________per unit Fixed cost 1,400 Units 2,400 UnitsTotal costVariable cost, $ per unitFixed cost 2. Variable cost charged to product: units × $ per unit = $__________________________. 3. Fixed cost charged to factory overhead: $ per month × 12 months = $__________________.
Question No. 4: Production under Constrained Resources Glover Company makes three products in a single facility. These products have the following unit product costs:ProductABCDirect materials$35.10$51.60$58.00Direct labor22.5025.1015.90Variable manufacturing overhead2.301.701.60Fixed manufacturing overhead12.207.808.40Unit product cost$72.10$86.20$83.90Additional data concerning these products are listed below.ProductABCMixing minutes per unit1.300.800.20Selling price per unit$81.00$103.40$96.90Variable selling cost per unit$2.90$3.40$3.20Monthly demand in units310044002400The mixing machines are potentially the constraint in the production facility. A total of 7930 minutes are available per month on these machines. Direct labor is a variable cost in this company.Required : a. How many minutes of mixing machine time be required to satisfy demand for all three products?b. How much of each product should be produced to maximize net operating income?ABCOptimal productionc. Up to how much…
1) Eberling, Incorporated, manufactures and sells two products: Product Q9 and Product Z8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product Q9 900 8.0 7,200 Product Z8 1,000 7.0 7,000 Total direct labor-hours 14,200 The direct labor rate is $27.70 per DLH. The direct materials cost per unit is $122.40 for Product Q9 and $103.20 for Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Activity Measures Estimated Overhead Cost Expected Activity Product Q9 Product Z8 Total Labor-related DLHs $ 531,080 7,200 7,000 14,200 Production orders Orders 74,880 600 700 1,300 Order size MHs 541,944 3,800 4,000 7,800 $ 1,147,904 Required: Determine the unit product cost of each product under the activity-based…
1. DEF Company's average cost per unit is $1.425 at the 16,000 unit level of activity and $1.38 at the 20,000 unit level of activity. Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for DEF Company: a. Variable cost per unit. b. Total fixed cost per period. c. Total expected costs at the 18,000 unit level of activity. ----------------------------------------------------------------------------------- 2. TUV Inc., a manufacturing company, has provided the following financial data for September: Sales $590,000 Variable production expense $106,000 Variable selling expense $18,000 Variable administrative expense $78,000 Fixed production expense $145,000 Fixed selling expense $72,000 Fixed administrative expense $132,000 The company had no beginning or ending inventory. Required: a. Income statement in good form for September using the traditional approach. b. Income statement in good form for…
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
Question 1 Part A Asco Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Average Cost per unit Direct materials $ 13 Direct labor 8 Fixed manufacturing overhead 6 Variable manufacturing overhead 3 Required: a) If 25,000 units are produced, what is the variable cost per unit? b) If 16,000 units are produced, what is the variable cost per unit? c) Comment briefly on your answers to (a) and (b). d) If 18,000 units are produced, what are the total variable costs? Part B GEM Ltd leases a photocopy…
Selling price = $15 per unitVariable costs - variable manufacturing costs = $5 per unitvariable selling costs = $2 per unitFixed costs - Fixed manufacturing costs = 4 per unitFixed selling costs = $1 per unitActually production unit = 102000 unitsSold units = 96000 units Prepare an income statement for the year ended for the year using Absorption costing.Question September October November December Januarysales (units) 8000 12000 13000 16000 15000Direct manufacturing laborshour per unit 1.79 1.75 1.70 1.65 1.60Direct manufacturing labor rate per unit $15.75 $16.00 $16.50 $17.50 $17.50Ending inventory required is the next month sales , plus one half the following months salesThe ending inventory in august was 15000 unitsEach employee is required to contributed to Canada pension plan in the order of 4.9% of wages, this is matched by the employerWorkers compensation expenses are 1.9% of the wage totalEmployment insurance is 1.85% of wages and the employer pays 1.4 times the rate…
2. Model C-V-UA company has the following data about its costs: Variable unit cost:Raw material $2.3Labor $1.2Variable GIF $0.6Fixed monthly costs:GIF $7,500 Depreciation $4,500Salaries $ 36,500Rent $3,700Utilities $ 900 The unit sale price is $12 and sales of 10,000 units are planned.Calculate the safety margin in percentage: __________________With the above data, it calculates the percentage contribution margin.