Sales P1,000,000 Direct Materials P 30 Direct Labor 500,000 variable Factory Overhead 300,000 Variable Marketing & Selling Expenses (5% based on sales) 50,000 200,000 Variable General & Administrative Expenses Fixed Factory Overhead Fixed Marketing & Selling Expenses 150,000 ixed General & Administrative Expenses 50,000 Profit (Loss)
Q: Product A Product B Product C Total Sales $ 150,000 $ 130,000 $ 90,000 $ 370,000 Variable…
A: We know that at break-even sales company can recover all the cost incurred in the production of…
Q: Production in units 25,000 Material costs P150,000 Direct labor costs 2,500 hours at P38.50 per hour…
A: The gross profit is calculated as difference between sales revenue and cost of goods sold.
Q: X Limited Corporation making one product only, the standard cost of which is as follow:…
A: Absorption costing income statement:
Q: Manufacturing Costs: Variable Manufacturing Costs: Direct Materials P 10 per unit 5 Direct Labor…
A: Explanation of Concept Cost is the expenses which have been incurred for production, marketing and…
Q: A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for…
A: Total Sales = No. of units sold x sales price per unit = 40,000 units x $15 each = $600,000 Cost of…
Q: Marinette Company makes several products, including canoes. The company has been experiencing losses…
A: Fixed costs can be divided into direct fixed costs that are related to a specific product or segment…
Q: Company XYZ made total sales revenue of $550,000. The variable manufacturing costs were $145,000…
A: Total contribution margin refers to the difference between total sales revenue and total variable…
Q: Sales @ P74/unit P636,400 Variable costs per unit: Fixed costs: Direct materials P12 Factory…
A: Solution 1: Units sold = Sales / sales price = 636400 / 74 = 8600 units Period cost for the month…
Q: What is contribution margin when 400,000 units are sold? Units 450,000 Sales revenue $2,812,500…
A:
Q: Sales units Sales dollars Production units March 12,000 $144,000 12,300 April 15,000 $180,000 15,300…
A: Manufacturing overhead costs means all type of indirect costs incurred in the production and…
Q: Sales (45,000 units at $10 per unit).. Less cost of goods sold: $450,000 Direct materials Direct…
A: The build-up of costs and the break-up costs showed in a statement called a cost sheet, it is a…
Q: Company XYZ made total sales revenue of $400,00 costs were $20,000. The variable selling and admir…
A: Ans. To get contribution margin, variable costs are deducted from sales amount. The variable selling…
Q: Prime Costs P560,000 Factory manager's salary 96,000 Variable factory overhead 80,000 Office…
A: 1. Prime costs 560000 variable factory overhead 80000 straight line depreciation on plant…
Q: 4 Maxim Company incurred $40,000 of fixed cost and $30,000 of variable cost when 2,000 units of…
A: The question is multiple choice question Required Choose the Correct Option
Q: Patricia Company earned P 40,000 on sales of P 400,000. It earned P 55,000 on sales of P 450,000.…
A: Answer: Correct option is option (d) P 80000 Let us suppose variable cost to be x and hence…
Q: NUBD Co. developed the following information for the year ended December 31, 2021: Product A 4,000…
A: Current scenario: Total Contribution margin = P18,000 Contribution margin per unit = P18,000 /…
Q: Company XYZ made total contribution margin of $800,000 and a net income of $90,000. The company also…
A: The correct answer is Option e. 710000
Q: Sales (200,000 units) Costs and expenses Direct materials Direct labor Overhead Selling expenses…
A: Cost of Product for 200,000 units ( $ ) Direct…
Q: Maxim Company incurred $40,000 of fixed cost and $30,000 of variable cost when 2,000 units of…
A: Variable cost per unit = Total variable cost / no. of units produced = $30000/2000 units = $15 per…
Q: Number of units produced 2,900 Number of units sold 1,700 Unit sales price $ 790.00 Direct…
A: Absorption income statement is as follows: Results of the formulas used in the above table are as…
Q: WHITNEY COMPANY Income Statement For the Year Ended December 31 Sales (45,000 units at $10 per unit)…
A: Calculation:
Q: Sales @ P74/unit P636,400 Variable costs per unit: Fixed costs: Direct materials P12 Factory…
A: Solution: Sales 636400 / Sales price 74 Units sold 8600
Q: Pints produced with each batch 40 Selling price per batch 93.00 Variable materials per batch 35.70…
A: Costs are bifurcated into variable and fixed elements. This is done for cost-volume-profit analysis.…
Q: Dropping or Retaining a Segment Thalassines Kataskeves, S.A., of Greece makes marine equipment. The…
A: The financial advantage (disadvantage) of discontinuing the bilge pump product line is calculated as…
Q: Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of…
A: Operating income is the excess of income after deduction of all operating expenses. It is computed…
Q: For the year: Percent of capacity Direct labor hours Variable factory overhead Fixed factory…
A: Variable Cost - The total cost of production of a good comprises of the total fixed cost of…
Q: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials…
A: Contribution Margin Ratio - It is the difference between a company's sales and variable costs,…
Q: Average Cost per UnitDirect…
A:
Q: A C. D MVP, Inc. Income Statement For the Year Ended December 31, 2021 Sales $ 375,000 Cost of Goods…
A: Income statement: Income statement as a part of financial statement that presents the organization's…
Q: Hi-Tek Manufacturing Inc. Income Statement $ 1,714,000 1,246,844 467,156 590,000 Sales Cost of goods…
A: The answer for this is as follows
Q: Fixed expenses of the business 345,000 Unit selling price for a single item sold is 360 Variable…
A: SAfety Marging = [Production Level - Breakeven Point]/Production Level
Q: Hi-Tek Manufacturing Inc. Income Statement $ 1,714,000 1,246,844 467,156 590,000 Sales Cost of goods…
A: When we reduce the variable cost and manufacturing overhead from the sale, we get the contribution…
Q: Company XYZ made total contribution margin of $900,000 and a net income of $80,000. The company also…
A:
Q: SELLING PRICE PER UNIT 200 OPERATING INCOME 42,000 IN 2018 Variable expenses per…
A: Operating income =Total sales-Variable cost-Fixed cost Variable Cost =Direct material +Direct…
Q: yeal ago. Sults ipany s year opere using the absorption costing method follow: Sales (40,000 units @…
A: Solution: Fixed manufacturing overhead deferred in ending inventory = Nos of units in ending…
Q: Sales (30,000units) P 150,000…
A: Break even point = fixed cost/ contribution margin per unit Contribution margin = 49200
Q: Sales (20,000 units) Cost of sales: Direct materials Direct labor Variable overhead Fixed overhead…
A: The variance is the difference between actual data and standard production data. The flexible budget…
Q: Sales of the product 80,000 units Material=4,80,000 Labor=1,60,000 Variable Overheads=3,20,000…
A: Pricing plays an importanat role in sales of an product which was based on cost, market conditions…
Q: Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials…
A: Under the Absorption Costing method, there is no difference between variable cost and fixed cost.…
Q: The following information relates to Drexler Inc.’s Year 3 nancials:
A:
Q: Sales (90 units): Production costs (100 units): $90,000 Direct materials $40,000 Direct labor 20,000…
A: Calculation of product cost per unit: Particulars Amount Direct materials $40,000 Direct…
Q: Sales (@ $25 per unit).... Cost of goods sold (@ $18 per unit). Gross margin..... $1,000,000…
A: Variable costing: Variable costing is the costing method in which only variable expenses are…
Q: Sales (10,500 units) $1,470,000 Production costs (14,000 units): Direct materials $725,200 Direct…
A: Only Difference between Absorption and Variable costing is Treatment of Fixed Factory Overhead. In…
Q: Sales volume per annum Unit selling price Production cost per unit: Direct materials Direct labor…
A: Explanation of Concept:- Cost : - is the expenses which have been incurred for production,…
Q: The following information relates to Drexler Inc.’s Year 3 financials:
A:
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- 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 costScattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows: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?
- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?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?Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
- Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities: Required: 1. Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Discuss the reports implications. 2. Explain the role of activity reduction for receiving and for expediting. What is the expected value of SQ for each activity after JIT is fully implemented? 3. What if at the end of 20x2, the selling price of a competing product is reduced by 27 per unit? Assume that the firm produces and sells 20,000 units of its product and that its product is associated only with the four activities being considered. By virtue of the waste-reduction savings, can the competitors price reduction be matched without reducing the unit profit margin of the product that prevailed at the beginning of the year? If not, how much more waste reduction is needed to achieve this outcome? In this case, what price decision would you recommend?Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution.Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
- 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.Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?