Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually makes and sells 13,000 units. Per unit Static Flexible standards Budget Budget Number of units 12,000 13,000 Sales revenue $65.00 $780,000 $845,000 Variable manufacturing costs: Materials $11.00 132,000 143,000 $ 9.00 $ 4.20 Labor 108,000 117,000 Overhead 50,400 54,600 Variable general, selling, and administrative costs $11.00 132,000 143,000 Contribution margin $357,600 $387,400 Fixed costs Manufacturing overhead General, selling, and administrative 100,800 100,800 costs 45,000 45,000 Net income $211,800 $241,600 What was the sales volume variance?
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- Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 25 8 3 7 4 6 $53 Total $ 1,100,000 352,000 1. 2. 3. 132,000 308,000 176,000 264,000 $ 2,332,000 The Rets normally sell for $58 each. Fixed manufacturing overhead is $308,000 per year within the range of 37,000 through 44,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channels next year. A large retall chain has offered to purchase 7,000 Rets If Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order, thus, variable selling expenses would be slashed by 75%. However, Polaski…Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 20 6 3 7 4 6 $ 46 Total $ 680,000 204,000 102,000 238,000 1. 2. 3. 136,000 204,000 $ 1,564,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $238,000 per year within the range of 26,000 through 34,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 26,000 Rets through regular channels next year. A large retail chain has offered to purchase 8,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski…es Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would…
- Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $15 6 IN MING 3 1. 2. 3. 5 Financial advantage Financial (disadvantage) 2 6 $ 37 Total $ 510,000 204,000 The Rets normally sell for $42 each. Fixed manufacturing overhead is $170,000 per year within the range of 24,000 through 34,000 Rets per year. 102,000 170,000 68,000 204,000 $ 1,258,000 Required: 1. Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling…Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 50,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 15 Total $ 750,000 8 400,000 3 150,000 9 450,000 2 100,000 6 300,000 $ 43 $ 2,150,000 The Rets normally sell for $48 each. Fixed manufacturing overhead is $450,000 per year within the range of 43,000 through 50,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 43,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company…AJ manufacturing company produces about one hundred products. Its largest selling product is product X and its smallest is product Y. relevant data is given below: Particulars Product Product Total product 1000 X Y 5000 50,000 Units produced per annum Material cost per unit Direct labor per unit Machine time per unit No. of set ups per unit No. of purchase orders for material Rs.1 Rs.1 15 min 15 min 1 hour 1 hour 24 2 500 36 6 2800 No. of times material handled 200 15 12000 Rs.5.00 Direct labor cost per hour Overhead Costs: Set up Purchasing Material handling 280,000 145,000 130,000 660,000 1,215,000 Machines Total Machine hours are 600,000 hours. Required: a) Find out the production unit cost of product X and product Y. b) Using conventional product costing machine hour overhead absorption rate. c) Using ABC (Activity Base Costing ) compare the results of methods and comment. Ac Go
- Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 32,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $ 15 6 3 5 160,000 4 128,000 192,000 6 $ 39 $ 1,248,000 Total $ 480,000 192,000 96,000 The Rets normally sell for $44 each. Fixed manufacturing overhead is $160,000 per year within the range of 25,000 through 32,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 25,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company…Please solve this MCQs Dake Corporation's relevant range of activity is 4900 units to 5500 units. When it produces and sells 5200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.70 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 1.00 Fixed administrative expense $ 0.70 Sales commissions $ 0.80 Variable administrative expense $ 0.70 If 4200 units are produced, the total amount of indirect manufacturing cost incurred is closest to: $15,600 $8820 $21,420 $24,420Kirchoff, Inc., manufactures a product with the following costs: Direct materials Per Unit Per Year P18.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses P11.90 P2.10 P1,422,000 P3.60 Fixed SG&A expenses The pricing calculations are based on budgeted production and sales P1,540,500
- When the company sells 20,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 36,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit Total $ 20 $ 720,000 10 360,000 3 108,000 5 180,000 2 72,000 6 216,000 $ 46 $ 1,656,000 The Rets normally sell for $51 each. Fixed manufacturing overhead is $180,000 per year within the range of 30,000 through 36,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 30,000 Rets through regular channels next year. A large retail chain has offered to purchase 6,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company…Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? 1. Total product cost 2. Total period cost 3. Total product cost 4. Total…