Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials 4 Direct labor 5 Factory overhead $56.00 36.00 $194,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 42,000.00 9 Travel 13,000.00 10 Miscellaneous selling expense 7,000.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 13 Supplies 124,600.00 8,000.00 6.00

Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials 4 Direct labor 5 Factory overhead $56.00 36.00 $194,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 42,000.00 9 Travel 13,000.00 10 Miscellaneous selling expense 7,000.00 1.00 11 Administrative expenses: 12 Office and officers' salaries 13 Supplies 124,600.00 8,000.00 6.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...

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Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: \table[[1,,Estimated Fixed,\table[[Estimated],[Variable Cost (per],[unit sold)]]],[2,Production costs:,,],[3,Direct materials,-,$56.00
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $22 Direct labor — 14 Factory overhead $272,400 11 Selling expenses: Sales salaries and commissions 56,600 5 Advertising 19,200 — Travel 4,300 — Miscellaneous selling expense 4,700 4 Administrative expenses: Office and officers' salaries 55,300 — Supplies 6,800 2 Miscellaneous administrative expense 6,300 2 Total $425,600 $60 It is…
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $26 Direct labor 17 Factory overhead $114,300 13 Selling expenses: Sales salaries and commissions 23,700 6 Advertising 8,000 Travel 1,800 Miscellaneous selling expense 2,000 5 Administrative expenses: Office and officers' salaries 23,200 Supplies 2,900 2 Miscellaneous administrative expense 2,660 3 Total $178,560 $72 It is…
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $24 Direct labor 16 Factory overhead $365,000 12 Selling expenses: Sales salaries and commissions 75,800 5 Advertising 25,700 Travel 5,700 Miscellaneous selling expense 6,300 4 Administrative expenses: Office and officers' salaries 74,100 Supplies 9,100 2 Miscellaneous administrative expense 8,540 3 Total $570,240 $66 It is…
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials — $66.00 4 Direct labor — 32.00 5 Factory overhead $190,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 102,000.00 6.00 8 Advertising 37,000.00 — 9 Travel 10,000.00 — 10 Miscellaneous selling expense 7,800.00 1.00 11 Administrative expenses: 12 Office and officers’ salaries 138,400.00 — 13 Supplies 12,000.00 2.00 14…
2. What is the expected contribution margin ratio? Round to the nearest whole percent. 3. Determine the break-even sales in units and dollars. Units units Dollars 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 2$ 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars: Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. Round to one decimal place.
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials — $66.00 4 Direct labor — 32.00 5 Factory overhead $190,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 102,000.00 6.00 8 Advertising 37,000.00 — 9 Travel 10,000.00 — 10 Miscellaneous selling expense 7,800.00 1.00 11 Administrative expenses: 12 Office and officers’ salaries 138,400.00 — 13 Supplies 12,000.00 2.00 14…
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials — $46.00 4 Direct labor — 40.00 5 Factory overhead $200,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 110,000.00 8.00 8 Advertising 40,000.00 — 9 Travel 12,000.00 — 10 Miscellaneous selling expense 7,600.00 1.00 11 Administrative expenses: 12 Office and officers’ salaries 132,000.00 — 13 Supplies 10,000.00 4.00 14…
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold)2 Production costs:3 Direct materials — $50.004 Direct labor — 32.005 Factory overhead $190,000.00 20.006 Selling expenses:7 Sales salaries and commissions 101,000.00 12.008 Advertising 36,000.00 —9 Travel 14,000.00…
A. Prepare a cost estimate for a volume level of 128,000 units of product this year. B. Determine the costs per unit for last year and for this year.
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,817 3,734 February 3,201 4,268 March 3,841 6,402 April 4,801 8,429 May 3,414 5,335 June 4,930 8,536 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs $