19. Vernz Writer produces and sells boxes of signing pens for P1,000 perbox. Direct materials are P400 per box and direct manufacturing laboraverages P75 per box. Variable overhead is P25 per box and fixed overheadis P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000per year, with sales commissions of P100 per box. Production is expectedto be 100,000 boxes which is met every year. For the year just ended,75,000 boxes were sold. What is the inventoriable cost per box usingvariable costing. *a. P770О Б. Р500c. P475O d. P625

Variable costing is a costing method where the product costs consider only the variable cost of…

Answered: 19. Vernz Writer produces and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Econ Company produces widgets. Each widget sells for $120, and the company sells approximately 50,000 widgets each year. Unit cost data for the year follows: Direct Material, $38 Direct Labor, $20 Other Cost: Variable Fixed Manufacturing $12 $8 Distribution 8 6 a. $70 b. $45 c. $75 d. $89
1. Golf Corporation estimates that its production for the coming year will be 25,000 units, which is 90% of normal capacity, with the following units costs: Materials P50 Direct labor 90 Direct labor is paid at the rate of P25 per hour. The machine should be run 20 minutes to produce one unit. Total estimated overhead is expected to consist of P900,000 for variable overhead and P900,000 for fixed overhead. g. What is the predetermined overhead rate base on material cost using the normal capacity level? h. What is the overhead rate base on machine hours using the normal capacity activity level?
Subject:- Account
A firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. Write your answer and then Round your answer up to the nearest number for future calculation. (e.g 9.6 => 10). Please clearly write down the formulation and calculation for your answers. Note: Here I make the time measures bolded for you to make you pay the attention to their differences. Please notice the difference in times measure units, so that you do not make mistake by doing calculations with different time measures. You need to convert the data to the same time measures before doing any…
Explorer Company has an annual plant capacity of 3,000 units. Data concerning this product are given below: Direct Materials cost per unit $ 20.00 Direct Labor cost per unit $ 8.00 Variable manufacturing overhead cost per unit $ 5.00 Variable sales commissions per unit $ 6.00 Fixed selling and administration expenses per unit $ 9.00 $ 48.00 Currently, the sales volume at the regular selling price of $75 is 2,500 units per year. The company has received a special order for 500 units at a selling price of $45 each. Regular sales would not be affected, and sales commissions on the 500 units would only be 2/3 of the regular sales commission per unit for this special order. This special order would have no impact on total fixed costs. Required: a. Determine whether the company should accept the special order. Explain in your own words your decision and show all computations.
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $12.41 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $551,855 per year. Administrative cost (all fixed) totals $419,190. Comer expects to sell 247,000 strings of light next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3
K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and $1,050,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 130,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.25 per direct labor hour. O $47.50 per direct labor hour. O $39.42 per direct labor hour. O $8.08 per direct labor hour. O $0.12 per direct labor hour.
Sheffield Co. estimates that it will incur $1290000 of overhead costs each year in its three main departments, machining ($750000), inspections ($360000) and packing ($180000). The machining department works 4000 hours per year, there are 600 inspections per year, and the packing department packs 1000 orders per year. Information about Sheffield's two products and their estimated use of cost drivers is as follows: Machining hours Inspections Orders packed Direct labor hours Product X $645000 O $446538 $642000 O $310500 1000 100 350 1700 Product Y 3000 500 650 1800 If ABC is used, how much overhead will be assigned to Product X?
Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $1,008,000 (based on $18 per hour × 56,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Factory overhead costs Independent variable Direct labor hours Intercept $ 136,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.959 R2 0.846 Based on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? Multiple Choice $72 $92 $95 $77
21. Empresas Tu Pan produces and sells 1,000,000 pounds of bread monthly. Its variable costs are $ 0.50, this includes $ 0.10 of commissions to sellers. Other variable administrative costs total $ 0.15. Your fixed costs per unit produced are $ 0.25 per month and $ 50,000 for administrative expenses per month. The annual fixed cost of this company will be:
Am. 112.
Am. 112.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

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

SEE MORE TEXTBOOKS