unit product cost under variable costing
Q: Define direct labour cost variance.
A: Definition: Variance analysis: Variance analysis is the process of evaluating the differences…
Q: 'direct costs'
A: Direct costs are the costs that incurred directly for converting any raw material into finished…
Q: Explain unit product cost under variable costing.
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: conversion cost per unit
A: Conversion costs are costs incurred to produce raw materials into Finished goods. These are labour…
Q: Variable cost per uni
A: The total cost of production of a good comprises of the total fixed cost of production and the total…
Q: Classifying costs Classify each cost by placing an X in the appropriate columns. The first cost is…
A: Product costs: Product costs are the costs which are incurred in the production of the goods. These…
Q: Variable Costing Income Statement
A: Particulars in millions Total (A) Fixed (B) Variable (C = A - B) Cost of goods sold $18240…
Q: total cost function
A: We know that fixed cost remains constant irrespective of the level of activity and variable cost…
Q: ustomizing cost
A: Cost accounting is one of the accounting system that is used by the businesses. The main purpose of…
Q: calculate unit manufacturing costs
A: How to Calculation unit manufacturing cost.
Q: Cost classifications used for predicting cost behavior include: Multiple Choice Variable cost and…
A: Variable costs are the costs that varies with the change in output but per unit variable cost…
Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.
A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…
Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…
A: Selling expenses means the expense incurred while selling the goods like sale men commission , sale…
Q: Are selling and administrative expenses treated as product costs or as period costs under variable…
A: Selling and administrative expenses: These expenses incurred by the company does not relate to the…
Q: costs that change proportionately according to the changes in the cost driver.......
A: variable costs are the costs that change according to the changes in the cost drivers or changes…
Q: When units produced exceed units sold, how does operating income differ between variable costing and…
A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting…
Q: Net income under Variable costing Method
A: Solution:- Calculation of Income under Variable costing method as follows:- Note:- Calculation of…
Q: Under an activity based costing system, what is the per-unit overhead cost of Z
A: Activity based costing is a management accounting technique which used to allocate overhead cost and…
Q: Which one of the following activity shows semi-variable cost behaviour A. Unit level activity B.…
A: A semi-variable cost, also known as a semi-fixed cost or a mixed cost, is a cost composed of a…
Q: unit selling price
A: Particulars Amounts in P Materials 276000 Labor 84000 Factory overhead 180000 Total cost…
Q: What is the variable cost per unit produced?
A: Variable costs are those costs which changes directly with change in level of activity. For example,…
Q: Volume-based cost systems tend to:
A: Meaning of Volume Based Cost System Volume based costing is also known as traditional costing. It is…
Q: Identify the costs included under variable costing.
A: The costs can be distinguished as variable and fixed costs.
Q: Cost per unit for conversion cost
A: Conversion costs is that cost which is the cost of direct labour and factory overhead costs which…
Q: The traditional (Volume-based cost systems) tend to:
A: Answer: Option (a) is the correct answer. Under-cost low-volume products and over-cost high-volume…
Q: costs in which there are variable components and fixed components.....
A: Fixed costs will not change with the change in the level of production. Variable costs will change…
Q: Income statement under variable costing method
A: in variable costing method, product costs are only made up of variable expenses like direct…
Q: determine unit cost under variable costing?
A: Costing techniques are important concept used in cost accounting branch. There are two type of…
Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…
A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…
Q: "Under variable costing system, the unit product cost includes:" "Direct materials, direct…
A: Variable costs are those costs which changes directly with change in level of activity. If level of…
Q: Average Costing
A: Particulars Cost 250 chairs @$13 $3,250 50 chairs @$15 $750 72 chairs @$20 $1,440 372 chairs…
Q: Explain unit product cost under absorption costing.
A: Absorption costing (also known as the “Cost-Plus” approach), is a method that is centered upon the…
Q: Weighted-average cost per unit
A: Inventory: Inventory means to stock it may be raw materials, work-in-process or finished goods Goods…
Q: Difference between variable costing and absorption costing.
A: Absorption costing includes all costs, including fixed costs, related to production, while variable…
Q: What is meant by the term cost driver? What is a volume-based cost driver?
A: Activity-based costing: It is a method that helps in finding the activities performed by a company…
Q: What is the difference between absorption costing and variable costing?
A:
Q: . What was Product Z’s unit cost under absorption costing? 2. What was Product Z’s unit cost under…
A: Total variable manufacturing cost = Direct material + direct labor + variable manufacturing overhead…
Q: Describe income statement under variable costing.
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: The product costs per unit under variable costing would be:
A: Variable costs are those costs that change with the change in the number of products manufactured by…
Q: key different in accounting for costs between absorption and variable costing
A: Absorption costing and variable costing are two methods of costing products.
Q: Describe different types of cost behavior in relation to production and sales volume.
A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…
Q: Overall Unit Contribution Margin:
A:
Q: Briefly explain the difference between absorption costing and variable costing.
A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…
Q: Distinguish between fixed cost and variable cost.
A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…
Q: total cost
A: We know that fixed cost remains constant irrespective of the level of activity and variable cost…
use 26 as reference for 28
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- Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. 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, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?Comacho Chemical Co. recorded costs for the month of 18,900 for materials, 44,100 for labor, and 26,250 for factory overhead. There was no beginning work in process, 8,000 units were finished, and 3,000 units were in process at the end of the period, two-thirds completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)
- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?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.
- During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?Abbey Products Company is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, 60,000; estimated materials costs, 50,000; estimated direct labor costs, 60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none. The actual factory overhead incurred for November was 80,000, and the production statistics on November 30 are as follows: Required: 1. Compute the predetermined rate, based on the following: a. Direct labor cost b. Direct labor hours c. Machine hours 2. Using each of the methods, compute the estimated total cost of each job at the end of the month. 3. Determine the under-or overapplied factory overhead, in total, at the end of the month under each of the methods. 4. Which method would you recommend? Why?
- Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900Moleno 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.During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs 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 Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, 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.