1. At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total factory overhead costs of: A. $36,000 B. $34,000 C. $30,000 D. $32,000
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- Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?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?At 50,000 units of production, the Grayson Company expects costs to be as follows: Direct materials $140,000 $100,000 $50,000 $40,000 Direct labour Depreciation of factory Depreciation of production equipment Production supervisor's salary Supplies Indirect labour Electricity Assume all cost items are either strictly fixed or strictly variable. The total cost of direct materials at 40,000 units of production would be: Select one: a. $116,000 b. $168,000 $ 24,000 $5,000 $ 30,000 $ 15,000 c. $112,000 d. $140,000
- Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qverhead (fixed) 8.000.000$. Eind the gross profit margin if the company emplovs full absorption costing. And what woQuld be the unit cost of production had the company emploved normal absorption costing?Q.5) The estimated costs of producing 6,000 units of a component are: Total Per Unit Direct Material Direct Labor Applied Variable Factory Overhead Applied Fixed Factory Overhead ($1.5 per direct labor dollar) $10 $60,000 48,000 54,000 72,000 9. 12 $39 $234,000 The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. Required: Decide whether to make this product or buy this product from the market. Show computations.Lighthouse Company had the following information: At a manufacturing level of 5,000 units, variable and fixed manufacturing costs are $30 and $8 per unit, respectively. Selling price is $60 per unit. What is the total manufacturing cost for 10,000 units? a. $300,000 b. $380,000 c. $340,000 d. $600,000
- The costs incurred in the manufacture of 75,000 units of a product are: Direct materials $80,000 Direct labour $15,000 Variable overheads $32,000 Fixed overheads $130,000 If output increases by 15%, what will be the effect, if any, on the variable cost per unit? Show solutionDoran Technologies produces a single product. Expected manufacturing costs are as follows: Variable costs Direct materials Direct labor Manufacturing overhead Fixed costs per month Depreciation Supervisory salaries Other fixed costs $4.00 per unit $1.20 per unit $0.95 per unit $ 6,000 13,500 3,850 Required: Estimate manufacturing costs for production levels of 25,000 units, 30,000 units, and 35,000 units per month. At 25,000 urs At 30,000 units At 35,000 unitsAssume a firm has prepared the following cost estimates for the manufacture of a sub-assembly component based on an annual production of 8000 units: Per Unit (Rs) Total (Rs) Direct Materials 5 40,000 Direct Labour 4 32000 Variable Overhead Applied 4 32000 Fixed Overhead Applied(150% of direct labour cost 6 48000 Total cost 19 152000 The supplier has offered the sub-assembly at a price of $16 each. Two-thirds of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company buy or make the product?
- For product A of Shilpa Itd. the prime cost is Rs.20 per unit, factory overheads are 20% of prime cost and administration overheads are 25% of works cost, if the company desires to earn profit of 25% on selling price, the selling price per unit of product A would be? O a. Rs. 40 O b. Rs. 33 O c. Rs. 90 O d. Rs. 30)A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount per Unit $ 7.50 $4.75 $ 1.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions. Variable administrative expense What is the incremental cost incurred if the company increases production from 12,000 to 12,001 units? Multiple Choice $25.75 $18.75 $20.25 $5.00 $ 3.50 $ 2.00 $1.00 $ 0.50Captain America Company has operating income of P50,000 using direct costing for a given period. Beginning and ending inventories for that period were 13,000 units and 18,000 units, respectively. If the fixed factory overhead rate is P2 per unit, then what is the operating income using the absorption costing? Select one: a. P70,000 b. P40,000 c. P60,000 d. P50,000