Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
QUESTION 6
Your company currently produces a range of three products, D, E and F to which the following
details relate for Period 2.
Production (units)
Material cost per unit
Labour hours per unit
Machine hours per unit
D
1,500
RM 18
Set-up costs
Handling costs
Machining costs
Inspection costs
1
3
Labour costs are RM 8 per hour and production overheads are currently absorbed in the
conventional system by reference to machine hours. Total production overheads for Period 2
have been analysed as follows:
RM
327,250
187,000
140,250
280,500
935,000
E
2,500
RM 10
3
2
D
90
16
180
F
14,000
RM 20
2
6
(a) Calculate the cost per unit for each product using conventional methods.
The introduction of an ABC is being considered and to that end the following volume of
activities have been identified with the current output levels.
E
138
28
216
F
576
116
804
Number of set-ups
Number of material issues
Number of inspections
(b) Calculate the cost per unit for each product using the ABC approach.
(c)…
Table for Question 9 only Raw material Labor Overhead
Absorption Rate administration Selling Costs GHS 5 4321
What is the factory cost?
OA. 9
Ов. 12
OC 14
OD. 15
Q – 9:
Automobile Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.50 per ounce . . . . . . . . . . . . . . . . . . $3
Direct labor: 1.8 hours at $10 per hour . . . . . . . . . . . . . . . . . . . . . . . 18
Variable manufacturing overhead: 1.8 hours at $5 per hour . . . . . . . 9
Total standard variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . $30
During June, 2,000 units were produced. The costs associated with June’s operations were as follows:
Material purchased: 18,000 ounces at $0.60 per ounce . . . . . . . $10,800
Material used in production: 14,000 ounces . . . . . . . . . . . . . . . . . —
Direct labor: 4,000 hours at $9.75 per hour . . . . . . . . . . . . . . . . . $39,000
Variable manufacturing overhead costs incurred . . . . . . . . . . . . . $20,800
Required:
Compute the…
Chapter 4 Solutions
Managerial Accounting
Ch. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - All of the following are examples of batch-level...Ch. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Why are overhead costs allocated to products and...Ch. 4 - What are three common methods of assigning...Ch. 4 - Why are direct labor hours and machine hours...Ch. 4 - What are the advantages of using a single plant...Ch. 4 - The usefulness of a single plant wide overhead...
Ch. 4 - What is a cost object?Ch. 4 - Explain why a single plantwide overhead rate can...Ch. 4 - Why are multiple departmental overhead rates more...Ch. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - 15. What are the four activity levels associated...Ch. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - Prob. 4QSCh. 4 - Prob. 5QSCh. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Plant wide rate method P1 A manufacturer uses...Ch. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Exercise 17-17 Identifying activity levels C3...Ch. 4 - Prob. 2ECh. 4 - Exercise 17-1 Computing Plantwide overhead rates...Ch. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Exercise 17-5 Departmental overhead rates P2 Refer...Ch. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Exerciser 17-14 Activity-based costing P3 A2...Ch. 4 - Prob. 18ECh. 4 - Problem 17-1A Comparing costs using ABC with the...Ch. 4 - Prob. 2PSACh. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Prob. 4SPCh. 4 - Prob. 1AACh. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Accounting professionals who for private companies...Ch. 4 - Prob. 4BTNCh. 4 - Prob. 5BTNCh. 4 - Visit and observe the processes of three different...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…arrow_forwardnit 1 Chapter 1 Assignment i 1 t 1 of 15 S Print Period Ccb Home | barti.... 22 my.post.edu... 2 2 W Total product cost S Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Okay 3 E $ D Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: 4 Saved $ 150,000 & LL Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.) F 5 T Question 1 -... G C 6 Y G what is the h.. H Help D Save & Exit Average Cost per Unit $7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You N M 8 - I Init 1 - C. Check my work K I Submit O 11 ct ? 0 delete return shiftarrow_forward1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 darrow_forward
- 4:50 Using the following data for January, calculate the cost of goods manufactured: Direct materials............ $25,000 Direct labor................ ..$ 6,000 Manufacturing overhead..........$ 9,000 Beginning work in process......$ 8,000 Ending work in process..........$12,000 The cost of goods manufactured was: Multiple Choice $48,000 $40,000 $44,000 $36.000 APR 28 < Prev Saved n tv 5 of 53 ‒‒‒ M N Sarrow_forwardQuestion 9 Company 9 makes three products, P, Q and R. Unit costs and revenues relating to these three products are as follows: P R £ 1,500 £ 2,500 | 3,300 Selling price Direct materials Direct labour Variable overheads 450 650 1,160 250 150 650 50 30 130 Fixed overheads 300 200 400 1,230 2,140 1,270| 1,160 Total costs 1,050 Profit per unit 450 All three products use labour which costs £50 an hour but suitable labour is in such short supply that the company cannot fulfil the demand for these three products in their entirety. In what order should these three products be produced if the company wishes to maximise its profit? Best 2nd best 3rd best A P Q R B R Q C Q R P Q Rarrow_forwardExercise 18-5 Measuring costs using high-low method P1 Felix & Co. reports the following information. (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 3,000 units are produced. Period 3 5 Units Produced Total Costs 0 $2,500 400 3,100 800 3,700 4,300 4,900 1,200 1,600 Period 6...... 7...... 8. 10...... Units Produced Total Costs 2,000 $5,500 2,400 6,100 2,800 6,700 3,200 3,600 7,300 7,900arrow_forward
- Question 5 Kukrudu Co. Ltd produces three modules of a product namely Hwentsia (H), Prekese (P) and Kakaduro (K). The following data related to the products for the period. Н K Total GH¢ 000 GH¢ 000 GH¢ 000 GH¢°000 Direct Material 240 200 150 14.4 590 92.4 Direct Labour Cost 24 54 Overheads Machine settings Overhead Processing Warehouse Cost 26 64 93 Energy to run machine Shipping A consultant, Mr. P. S. Initiative recommended the following after a detailed study of the company's production process. 42 36 АСTIVITY COST DRIVER ACTIVITY LEVEL H K a. Machine setup b. Sales order processing c. Warehouse cost d. Energy e. Shipping It is the policy of the Kukrudu Co. Ltd. to make a profit margin of 25% on its products. Required: Calculate the selling price of each of the three (3) products No. of Production runs 22 34 44 No. of sales received 600 200 600 400 400 No of units held in inventory 200 Machine Hours 10,000 16,000 24,000 No. of Units shipped 1000 4000 10,000 (all calculations should…arrow_forwardQuestion 4 The following data is available for the products that a company manufactures: Sales price Costs: Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead Paragraph BI UA/ 叩く Product A $120 IIII 50 27 Material required 2.3 meters 3.0 meters 1.5 hours 1.0 hours Direct labour hours required Machine hours required 0.8 hours 0.5 hours The demand for each product exceeds the capacity of labour hours available to produce them. Required: 1. Compute the amount of contribution margin (profitability index) for Product B given the indicated constraint. 2. If the company has the indicated constraint, what are two ways they can increase capacity at the bottleneck? 16 8 Product B $140 +v 40 18 10 5arrow_forwardM Thu Sep 8 t 14 of 15 AA Period Ce b Home | bartl... 23 my.post.edu... X 14 Unit 1-... 14 rint ezto.mheducation.com A Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 5 Total direct manufacturing cost Total indirect manufacturing cost Okay C Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: G what is the h. Average Cost per Unit $ 7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) @ 29% 4 + 88 Init 1-C... You aarrow_forward
- Q.1 Karachi Company manufactures and sells a single product. The following costs were incurred during the company’s third year of operations: Variable costs per unit: Manufacturing: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead . . . . . . . . . . . . .. 6 Variable selling and administrative . . . . . . . . . . . . 8 Fixed costs per year: Fixed manufacturing overhead . . . . . . . . . . . . . . . . . 600,000 Fixed selling and administrative . . . . . . . . . . . . . . . . 380,000 During the year, the company produced 35,000 units and sold 30,000 units. Units in opening inventory were 5,000 which were produced on the same costs per unit. Fixed manufacturing per unit in the previous accounting period was also the same. The selling price of the…arrow_forwardQ.1 Karachi Company manufactures and sells a single product. The following costs were incurred during the company’s third year of operations: Variable costs per unit: Manufacturing: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead . . . . . . . . . . . . .. 6 Variable selling and administrative . . . . . . . . . . . . 8 Fixed costs per year: Fixed manufacturing overhead . . . . . . . . . . . . . . . . . 600,000 Fixed selling and administrative . . . . . . . . . . . . . . . . 380,000 During the year, the company produced 35,000 units and sold 30,000 units. Units in opening inventory were 5,000 which were produced on the same costs per unit. Fixed manufacturing per unit in the previous accounting period was also the same. The selling price of the…arrow_forwardQ.1 Karachi Company manufactures and sells a single product. The following costs were incurred during the company’s third year of operations: Variable costs per unit: Manufacturing: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead . . . . . . . . . . . . .. 6 Variable selling and administrative . . . . . . . . . . . . 8 Fixed costs per year: Fixed manufacturing overhead . . . . . . . . . . . . . . . . . 600,000 Fixed selling and administrative . . . . . . . . . . . . . . . . 380,000 During the year, the company produced 35,000 units and sold 30,000 units. Units in opening inventory were 5,000 which were produced on the same costs per unit. Fixed manufacturing per unit in the previous accounting period was also the same. The selling price of the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Cost Classifications - Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=QQd1_gEF1yM;License: Standard Youtube License