St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Indirect materials Indirect labor Supervision Depreciation Maintenance Total Variable 7,600 15,800 2,800 3,600 20,600 $ 64,200. $ 50,400 Fixed 2,600 1,800 $ Required A Required B 8,600 35,600 15,600 Last month Next month $ Direct materials for the month amounted to $95,500. Direct labor for the month was $190,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month. Total $ 10,200 17,600 11,400 39,200 36,200 $ 114,600 Complete this question by entering your answers in the tabs below. Determine the cost per unit of production for the previous month and the next month. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cost per Unit < Required A Required B >
St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead. Indirect materials Indirect labor Supervision Depreciation Maintenance Total Variable 7,600 15,800 2,800 3,600 20,600 $ 64,200. $ 50,400 Fixed 2,600 1,800 $ Required A Required B 8,600 35,600 15,600 Last month Next month $ Direct materials for the month amounted to $95,500. Direct labor for the month was $190,500. During the month, 12,500 units were produced. Required: a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month. b. Determine the cost per unit of production for the previous month and the next month. Total $ 10,200 17,600 11,400 39,200 36,200 $ 114,600 Complete this question by entering your answers in the tabs below. Determine the cost per unit of production for the previous month and the next month. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Cost per Unit < Required A Required B >
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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Variance Analysis
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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