please solve question 2), thanks 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with anABC system. The ABC system would have the following three activity cost pools:Expected ActivityEstimatedActivities and Activity MeasuresSupporting direct labour (direct labour-hours)Drawing software modifications (changes)Quality review and technical checks (tests)Overhead Cost$840, 00084, 00014, 000CommercialResidentialTotal5, 60014035, 00017529, 4003511228140Total service department overhead cost$938, 000Determine the unit costs (cost per square metre of architectural drawings) of the Commercial and Residential lines of business underthe ABC system. (Round your answers to 2 decimal places.)CommercialResidentialUnit cost Problem 7A-1 Activity-Based Costing Product Costs for External Reports [LO6]Data concerning Cranur Architects Corporation's two major business lines are given below:Commercial$ 8.00Residential$Direct materials per square metreDirect labour per square metreDirect labour-hours per square metre5. 60$ 37. 500. 075 DLHS392, 000 m2500.1 DLHS56, 000 m2Estimated annual outputThe company has a traditional costing system in which architecture department overhead is applied to units (square metres ofarchitectural drawings) based on direct labour-hours. Data concerning architecture department overhead and direct labour-hours forthe upcoming year appear below:$938, 000Estimated total architecture department overheadEstimated total direct labour-hours35, 000 DLHS

Activity-based costing: Activity-based costing is the method that is used to assign overhead costs…

Answered: 2. The company is considering replacing…

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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Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement $ 1,657,500 1,224,620 432,880 620,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $4 (187,120) Hi-Tek produced and sold 60,500 units of B3o0 at a price of $19 per unit and 12,700 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: в300 T500 Total Direct materials $ 400,600 $ 120,400 $ 162,700 $ 42,000 563,300 162,400 498,920 Direct labor Manufacturing overhead Cost of goods sold $…
5 pped Dake Corporation's relevant range of activity is 2,300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Multiple Choice $57,915 For financial reporting purposes, the total amount of product costs incurred to make 3,900 units is closest to: $48,165 $61,815 Average Cost per $9,750 Unit $6.80 $ 4.00 $ 1.55 $ 2.50 $ 1.15 $ 0.85 $ 0.95 $ 0.85
Question 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 5
ces Ас Graw Hill ! Q A 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: Direct materials Direct labor N Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? Average fixed manufacturing cost per unit @ 2 W S #3 X 2.2 E D $ 4 8 B N J 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 A 1 ( ( 9 * K M ) 0 O 3 P comm
QUESTION TWO Makati Plc makes and sells a number of products. Estimated data for the forthcoming period is as follows: i) Product Data Production/Sales(units) Total direct material cost Total direct labour cost Product A 5,000 ZMW'000 80 40 Product B 10,000 ZMW'000 300 100 Other Products 40,000 ZMW'000 2,020 660 ii) Overhead costs are ZMW1, 500,000 of which 40% is related to the acquisition, storage and use of direct materials and 60% is related to the control and use of direct labour. iii) It is current practice in Makati Plc to absorb overhead costs into product units using overall companywide percentages on direct material cost and direct labour cost as the absorption bases. iv) Market prices for products A and B are ZMW 75 and ZMW 95 per unit respectively. Required: Prepare estimated unit product costs for Product A and Product B where overhead costs are charged to product units using the existing absorption basis as detailed above. Calculate the contribution for product A and B.
PROBLEM 3 Selected data about Pitkin Company's manufacturing operations at two levels of activity are given below: Number of units produced.. Total manufacturing costs. Direct material cost per unit. Direct labor cost per unit...... 15,000 10,000 $157,000 $225,000 $4 $6 $4 $6 Required: Using the high-low method, estimate the cost formula for manufacturing overhead. Assume that both direct material and direct labor are variable costs.
Period Ccb Home | bartl... O O of 15 2 £ Required information [The following information applies to the questions displayed below.] 22 my.post.edu... 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total fixed manufacturing cost Okay 3 Y x 10- Unit 1 -... 4 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? LO 5 G what is the h... 6 7 Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 Init 1 - C... 9 ct 0 dele
Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' 'Z' (RM) Product type (RM) (RM) Direct material 110 153 Direct labour department 140 Direct labour department 22d. Variable overheads Selling price 55 70 www 32 44 www 20 28 250 320 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct Jabour from department 2. www (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.
Question17 Given the information shown below, what are the costs for the production labor category for the weekly sales estimate level of $20,000? Labor Category Management 10.0% Service % Cost to Production 15.0% Sanitation Total Sales Total 3.0% 3.0% 31.0% Weekly Sales Estimate $19,000 $20,000 $21,000 ??? 0,000. Т.
1- 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 d
Exercise 1-8 Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.20 Direct labor $ 5.20 Variable manufacturing overhead $ 2.70 Fixed manufacturing overhead $ 6.20 Fixed selling expense $ 4.70 Fixed administrative expense $ 3.70 Sales commissions $ 2.20 Variable administrative expense $ 1.70 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 24,500 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 27,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 22,000 units?
ces Mc Graw Hill ! Required information [The following information applies to the questions displayed below.] Q 3 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: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 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.) Total direct manufacturing cost Total indirect manufacturing cost @ 2 W S X مو to 7816 command # 3 E D 3 C $ 4 R FL N D T * 0 8 H J 1 M 2023-01...0.40 PM 2023-01...2.52 PM 2022-12.... ( 9 K A C O ) 0 < I L P A command CA { I [ of

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