The incremental manufacturing cost that the company will incur if it increases production from 6,000 to 6,001 units is closest to:
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A: Break-even is the point wherein the company is in a situation of no profit no loss.
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A: Incremental cost = Incremental units×Variable cost per unit
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A:
Q: The total fixed costs are $1,500,000 and the unit variable costs are $200,000. If the company…
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Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Total variable cost = direct material + direct labor + variable MOH + Variable selling costs…
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Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Total variable cost = direct material + direct labor + variable MOH + Variable selling costs…
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A: Contribution margin = ( 1 - Variable cost ) Break-even point = FIxed cost / Contribution margin…
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A: Fixed costs are the costs that a company has to bear regardless of how much revenue it gathers.…
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A: Costing: Costing is any system for assigning the costs of a business. Costing is a cost allocated or…
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A: Step 1: Workings
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A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…
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A: Incremental cost is over and above current cost. Overhead cost for additional units $200000*16℅ =…
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A: Allocated fixed costs cannot be avoided, and hence, are not relevant. This is because this cost is…
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A: The incremental cost is also known as marginal cost. It is an additional cost incurred due to an…
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A: Introduction:- A cost is the value of money spent on creating something or delivering a service that…
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A: Variable cost are the costs that changes with the change in the output level. Like direct material…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Total variable cost = direct material + direct labor + variable MOH + Variable selling costs…
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A: Incremental cost is the cost incurred due to additional units produced in an organization. It is…
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A: Incremental Cost:-It is an increased difference producing two different types of units, like the…
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A: Here in this question, we are required to calculate break even point. Break even point is a point at…
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A: Variable cost ratio = 55% So. Contribution margin ratio = 45% Desired sales = (128,430 + 168,570)…
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A: The Calculation of Profit is as follows: Contribution = Sales - Variable Costs…
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A: Fixed cost: It refers to the cost that remains constant and does not change with a change in the…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental Cost per unit = Sum of Variable Cost / Units produced Incremental Cost of additional…
Q: CBC Inc is currently operating at 80% capacity. Its machine and factory has a maximum production…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…
A: Formula Contribution per unit = Sale price per unit - Variable cost per unit Units sold at Target…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Increase in units=102-100=2 units
Q: Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit…
A: Since all direct expenses have been deducted from sales, contribution seems to be the amount of…
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A: Sales revenue $ 250 Less: Variable costs $ 80 Contribution margin per unit $ 170
Q: Company experts in Cars and can produce at most 900 units per month. Its current monthly production…
A: The contribution margin is computed by subtracting the variable cost from the selling price of the…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Fixed cost remains constant at all levels of production. Only variable cost is taken for the…
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A: Net profit refers to the total sum value of money earned by an entity after deducting all the…
Q: Drape Corp. would like to market a new product at a selling price of P15 per unit. Fixed costs for…
A: Contribution margin per unit = P15 x 35% = P5.25
Q: Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B,…
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- 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?A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead. Which of the following is true? a. Prime costs are 150,000; conversion costs are 180,000. b. Prime costs are 130,000; conversion costs are 150,000. c. Prime costs are 150,000; conversion costs are 130,000. d. Prime costs are 180,000; conversion costs are 150,000.Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?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?Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
- 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.Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)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
- Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursPlata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?