unit cost
Q: KK ENTERPRISE was set up by a man and his with some few years ago. The trade in a lot of products. T...
A: A Cash budget contains the estimated inflows & outflows of cash during the period.
Q: Which of the following components of production are allocable as joint cost when a single manufactur...
A: components of production costs are - Direct material Direct labor Overheads
Q: Why is it necessary to use an income statement, balance sheet, and additional information to prepare...
A: A Cash Flow Statement is a part of the Financial Statement of a company. It literally means a statem...
Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays semiann...
A: Premium on Bond Payable = $435,800 - $415,000 = $20,800 Interest is paid semiannually for 10 year...
Q: Journalize the following, assuming a 360-day year is used for interest calculations: Apr. 30 Is...
A: Interest Expense = 150,000 x 6% x 30 / 360 = $750
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. You have just begun your summ...
A: The data are available of a manufacturing concern engaged in the manufacturing of musical gadgets. R...
Q: A company plans to sell 220 units. The selling price per unit is $24. There are 50 units in the begi...
A: A budget is defined as an estimate of revenue income and expenses for a set period of time. The budg...
Q: Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certai...
A: general information - Costs incurred internally for the development of patents are expensed in the y...
Q: Please answer it with a complete solution. Thank you. Make it original please not copy-paste.
A: total sales = $40.5 million credit sale = 80% of total sales old collection period = 30 days new co...
Q: The management of Cleancut Lawnmowers has calculated the following variances: Direct materia...
A: The total manufacturing overhead variance = Variable manufacturing overhead variance + Fixed manufac...
Q: Product X; total sales are 100 units, unit sales price is 1000 TL, unit variable costs are 800 TL. (...
A: Break Even Point= Fixed cost/Contribution per unit Fixed cost= 120*100= 12000 Contribution per uni...
Q: .
A: a) Computation of Standard Cost Per Unit Standard cost per unit = Standard Unit for a Variable per u...
Q: Retained Earnings Statement Rolt Company began 2019 with a $150,000 balance in retained earnings. Du...
A: Ending Retained earnings= Beginning Retained earnings + Net income - Dividends - Loss on retirement ...
Q: Chapter 4 Problems PR 4-2A Financial statements and closing entries ObJ. 2, 3 Finders Investigativ...
A: Closing entries are used to transfer the balance from a temporary account to a permanent account. We...
Q: Barch Enterprises develops and produces cleaning products. Presented below is the company's statemen...
A: Share Holders Equity The purpose of preparing the share holders equity to the company to know the ac...
Q: E. Compute for Consolidated asset for 2022.
A: The question is related to Consolidated Financial Statements. Required Calculate Consolidated Asset...
Q: Southwest Airlines' activities to achieve lower cost have been well documented in academics and busi...
A: The answer for the multiple choice question and relevant explanation are presented hereunder :
Q: Journalize the following entries on the books of the borrower and creditor. Label accordingly. (Ass...
A: Working Interest due on Note payable= 60000*5%*60/360 Interest due on Note Payable= 500
Q: The account Valuation Allowance for Investments in Common Stock is included on the: A. statement o...
A: As investment in common stock is a part of stockholder equity, due to this reason, valuation allowan...
Q: In a data visualization, the vertical axis typically shows __________. Multiple Choice valu...
A: A column chart will include data labels along the horizontal (X) axis with measured metrics or value...
Q: Which of the following procedures is least likely to be performed before the balance-sheet date?a. O...
A: Balance-sheet represents the financial position of the organization related to a specific period in ...
Q: action which can be taken by SAICA against the external auditor if he/she applied negligence in audi...
A: The action that can be taken by SAICA ( South African Institute of Chartered Accountants) against th...
Q: 33 AM AI balance before adjustment at March 31, 2016 for Toti The following is a partial Company. To...
A: First of all lets make Adjusting Entries SR. NO. PARTICULAR DEBIT CREDIT 1 Salaries...
Q: Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm...
A: ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share an...
Q: Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it r...
A: The cash flow statement is helpful for the stakeholders as they can identify the organization's fina...
Q: Following are the income statement and some additional information for Richmond Corporation for 2021...
A: operating activities are the regular activities of the business. All the non cash expenditure must ...
Q: a manager wants to assess the costs incurred in a department in the production department. then the ...
A: all the product costs will be incurred in the production department. - product costs like Direct m...
Q: Provisions Company, a manufacturer of office supplies, provides the following financial informati...
A: The correct option is B. 16.81% Please see the next step for the solution
Q: Book the following transactions from the perspective of the buyer and the seller: Apr 19 Spoke Co. s...
A: Interest on note = Face value of note x rate of interest x no. of days/365 days = $80000 x 10% x 90/...
Q: The payroll register of Heritage Co. indicates $13,800 of social security withheld and $3,450 of Med...
A: State unemployment tax payable= Earnings x State rate= $36000*5.40%= $1944 Federal Unemployment tax ...
Q: The net cash flow provided by operating activities is an inflow of $37,042, the net cash flow used i...
A: The cash flow statement is helpful for the stakeholders that they can identify the organization's fi...
Q: a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Al...
A:
Q: Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share and 8,000 shar...
A: Given that, Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share an...
Q: QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% prefe...
A: In the above Question journal entries are already given in the question. So on the basis of that we ...
Q: A firm raises capital by selling $30,000 worth of debt with flotation costs equal to 2% of its par...
A: Net issue proceeds=Amount of debt×1-0.02=$30,000×1-0.02=$30,000×0.98=$29,400 Thus, the net issue pro...
Q: Variable Cost Method of Product Pricing Smart Stream Inc. uses the variable cost method of applying ...
A: We need to calculate the markup % by using this formula Markup% =Desired contributionTotal variable ...
Q: What are the fundamental prerequisite of the Sarbanes Oxley act and how itis beneficial to business?...
A: Sarbanes Oxley act (SOX) is the act of 2002, which is federal law that create sweeping the financial...
Q: In determining the number of Break Even (B-E) units to sell in order to obtain the amount of Breakev...
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: Is depreciation a source of cash flow?
A: Depreciation represents the fall in the historical cost of the fixed asset indicating the normal dam...
Q: Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, ...
A: Earnings per share refer to the amount earned by each stockholder. This can be identified by dividin...
Q: A company has the following collection pattern: month of sale 40%; month following sale, 60%. If cre...
A: Note : Sales of Feb Corrected : $200000 Statement of Computation of Cash Collection In February...
Q: roles of directors of the company, executive director and non executive directors
A: EXECUTIVE DIRECTOR: An executive director is a senior operating officer or manager of an organizati...
Q: The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing ...
A: Labour Price variance = ( Standard price- Actual Price ) Actual quantity of labour used = (15-15.5)3...
Q: Q1 The under listed transactions relate to XYZ Company Limited: 2017 GH¢ January 1 Credit sales to A...
A: The sales day book is a type of ledger where details regarding the details of each credit sales is r...
Q: When an organization allocated indirect costs to departments by relative size of the budgets, it is ...
A: The question is True or False.
Q: A building was purchased on January 1, 1998, for $240,000 and straight line depreciation method was ...
A: Given the following information: Building was purchased on January 1, 1998, for $240,000 Straight l...
Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost
A: The cost function depicts the costs that will be incurred at various levels of activity Cost functio...
Q: JohnAssociates produces carburetors for small engines and uses a normal costing system. The followin...
A: Note : Since you have posted a question with more than 3 sub-parts and according to our guideline we...
Q: QUESTION 1 Aalwyn Ltd was incorporated with authorized share capital consisting of 800 000 10% prefe...
A:
Q: Bank Muzin entered into another mudharabah contract (Re- Mudharabah) with Company C to undertake a h...
A: Since profit and loss sharing ratio of the company C is 20% Year profit/loss share 1 ...
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
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.
Step by step
Solved in 4 steps
- Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of 600,000 and fixed factory overhead of 400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was 596,000, and actual fixed factory overhead was 410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. 24,000 unfavorable. b. 2,000 unfavorable. c. 4,000 favorable. d. 22,000 favorable.
- Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)Moleno Company produces a single product and uses a standard cost system. The normal production volume is 120,000 units; each unit requires 5 direct labor hours at standard. Overhead is applied on the basis of direct labor hours. The budgeted overhead for the coming year is as follows: At normal volume. During the year, Moleno produced 118,600 units, worked 592,300 direct labor hours, and incurred actual fixed overhead costs of 2,150,400 and actual variable overhead costs of 1,422,800. Required: 1. Calculate the standard fixed overhead rate and the standard variable overhead rate. 2. Compute the applied fixed overhead and the applied variable overhead. What is the total fixed overhead variance? Total variable overhead variance? 3. CONCEPTUAL CONNECTION Break down the total fixed overhead variance into a spending variance and a volume variance. Discuss the significance of each. 4. CONCEPTUAL CONNECTION Compute the variable overhead spending and efficiency variances. Discuss the significance of each.Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: The standard price paid per pound of direct materials is 1.60. The standard rate for labor is 8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company produces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds at 1.5513,000 for the small stapler and 43,000 for the regular stapler. There were no beginning or ending direct materials inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: 114,700. d. Variable overhead: 607,500. e. Fixed overhead: 350,000. Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity. 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain.
- Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400Shinto Corp. uses a standard cost system and manufactures one product. The variable costs per product follow: Budgeted fixed overhead costs for the month are $4,000, and Shinto expected to manufacture 2,000 units. Actual production, however, was only 1,800 units. Materials prices were 10% over standard, and labor rates were 5% over standard. Of the factory overhead expense, only 80% was used, and fixed overhead was $100 over budget. The actual variable overhead cost was $4,800. In materials usage, 8% more parts were used than were allowed for actual production by the standard, and 6% more labor hours were used than were allowed. Required: Calculate the materials and labor variances. Calculate the variances for overhead by the four-variance method. (Hint: First compute the fixed and variable overhead rates per hour.)
- Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?