10. ABC Inc. is developing its standard cost system. In producing its only product, the following measurements were thought about in connection with setting the standard hours allowed for output of one unit of product: Average historical performance for the past five (5) years: Performance at production level to satisfy average yearly consumer demand Engineering estimates based on reasonable performance Engineering estimates based on ideal performance The best basis that could have been used in establishing standard hours allowed should be 8.75 C. 80 A. 65 D. 95 65 80 75 95

10. ABC Inc. is developing its standard cost system. In producing its only product, the following measurements were thought about in connection with setting the standard hours allowed for output of one unit of product: Average historical performance for the past five (5) years: Performance at production level to satisfy average yearly consumer demand Engineering estimates based on reasonable performance Engineering estimates based on ideal performance The best basis that could have been used in establishing standard hours allowed should be 8.75 C. 80 A. 65 D. 95 65 80 75 95

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the following information for a product: Direct labor hours: 0.25 hour/unit Direct labor costs: $20/hour Direct materials cost: S5/unit Overhead costs: 110% of direct labor Packaging and shipping: $2/unit Desired profit margin: 2096 of the total cost Suppose that a market survey has shown that the best competitor's selling price for the product is $19.50 per unit. After conducting a value engineering study, It was found that the material cost is high and another equal and less expensive material can be used to achieve the required target cost. What should the material cost per unit be to achieve the required target cost for the product?
Mazoon Company decided to use the high-low cost estimation method to analyze its mixed costs. During the year 2020, the highest level of activity at peak season was in August (45,500 labor hours for a total cost of $121,450) and the lowest level of activity was in November (18,000 labor hours for a total cost of $80,200). What is the estimated total cost for Mazoon Company at an expected operating level of 32,000 labor hours? O a. None of the answers given O b. $48,000 c. O c. $105,700 O d. $101,200 e. $100,825 14:03 here to search A d0 ENG 15-04-2021 "bet se og up delete home end %23 96 & 7. num + backspace 3 4 6. 8. lock E Y 8 A home pg up 5 0 enter F J K pause C V MI ↑ shift 11 end alt ctri ins
Waterways Corporation uses very stringent standard costs in evaluating its manufacturing efficiency. These standards are not "ideal" at this point, but the management is working toward that as a goal. At present, the company uses the following standards. Materials Item Per unit Cost Metal 1 lb. 63¢ per lb Plastic 12 oz. $1.00 per Ib. Rubber 4 oz. 88¢ per Ib. Direct labor Item Per unit Cost Labor 15 min. $9.00 per hr. Predetermined overhead rate based on direct labor hours = $424 The January figures for purchasing, production, and labor are: The company purchased 228,200 pounds of raw materials in January at a cost of 79¢ a pound. Production used 228,200 pounds of raw materials to make 115,000 units in January. Direct labor spent 18 minutes on each product at a cost of $8.80 per hour. Overhead costs for January totaled $54,597 variable and $72,000 fixed. Answer the following questions about standard costs. Your answer is partially correct. What is the materials price variance? (Round…
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Standard cost systems provide companies with a number of advantages, argue the statement. Following are the details of Abbass Industries for the period ended June 30, 2020. Company establish standard on its normal capacity of 120,000 units/hours in a year: Direct Material 600,000 kgs at Rs. 9 per kg Direct Labor 4 hours per unit at Rs. 6 per hour Factory overhead: Fixed cost Rs. 240,000 per year or Rs. 20,000 per month. Variable Cost Rs. 4.50 per hour. During the one month of operation, company produced 11,000 units. Direct material used: 60,500 kgs at Rs. 9.10 per kg Direct labor used: 41,250 hours at Rs. 268,125 Actual variable Factory overhead Rs. 55,000 Required:…
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