Sheffield Manufacturing Company collected the following production data for the past month: Units Total Produced Cost 1600 $70500 1290 62130 1460 73000 1100 55000 If the high-low method is used, what is the monthly total cost equation? O Total cost - $0+ $50/unit O Total cost - $15400 + $36/unit O Total cost - $20900 + $31/unit O Total cost - $25300 + $27/unit

Sheffield Manufacturing Company collected the following production data for the past month: Units Total Produced Cost 1600 $70500 1290 62130 1460 73000 1100 55000 If the high-low method is used, what is the monthly total cost equation? O Total cost - $0+ $50/unit O Total cost - $15400 + $36/unit O Total cost - $20900 + $31/unit O Total cost - $25300 + $27/unit

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 38E: Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month:...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.