31A company bakes and sells muffins. The company's costs for the period include: Wages of bakers making muffins, $26,200; salary ofbakery supervisor, $6,220; depreciation expense on bakery equipment, $2,110; advertising costs, $575; and flour and ingredient costs,$18,300. Compute the total (a) prime cost and (b) conversion cost.Complete this question by entering your answers in the tabs below.ConversionCostCompute the total prime cost.Prime CostTotal prime cost(a) Prime Cost$Prime Cost0Conversion Cost >

Formula for Prime Cost is: Prime Cost = Direct Labor + Direct Materials Hence: Prime cost should…

Answered: 31 A company bakes and sells muffins.…

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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Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as variable, fixed, or mixed. 1. Cost of labor for hourly workers Fixed 2. Factory cleaning costs, $6,000 per month Mixed 3. Hourly wages of machine operators Variable 4. Computer chip (purchased from a vendor) 5. Electricity costs, $0.20 per kilowatt-hour 6. Metal 7. Salary of plant manager 8. Property taxes, $165,000 per year on factory building and equipment 9. Plastic 10. Oil used in manufacturing equipment 11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used 12. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 13. Straight-line depreciation on the production equipment 14. Pension cost, $1.00 per employee hour on the job 15. Packaging
H1.
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,093 14,645 April 2,668 10,463 May 2,846 11,922 June 3,779 18,072 a.$0.15 b.$0.98 c.$1.61 d.$1.02
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The following product costs are available for Arrez Company on the production of DVD cases: direct materials, $1,120; direct labor, $15.50; manufacturing overhead, applied at 150% of direct labor cost; selling expenses, $1,450; and administrative expenses, $950. The direct labor hours worked for the month are 90 hours. Round your answers to two decimal places. A. What are the prime costs? $fill in the blank 1 B. What are the conversion costs? $fill in the blank 2 C. What is the total product cost? $fill in the blank 3 D. What is the total period cost? $fill in the blank 4 E. If 1,400 equivalent units are produced, what is the equivalent material cost per unit? $fill in the blank 5 F. What is the equivalent conversion cost per unit?
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Direct materials Direct labor Applied overhead Molding Department $12,000 10,000 17,000 Grinding Department $5,300 8,800 14,000 Finishing Department $8,000 12,000 12,000
Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Fixed cost 2,000 Cups of Coffee 2,100 Cups of Coffee 2,200 Cups of Coffee Variable cost Total cost $ 0 $ 0 $ 0 Average cost per cup of coffee served
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73
Shanghai Company sells glasses, fine china, and everyday dinnerware. It uses activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $12 per pound. A box of glasses weighs 2 pounds, a box of fine china weighs 4 pounds, and a box of everyday dinnerware weighs 6 pounds. a Determine the shipping and handling activity cost to be allocated to each unit of product. Glasses Fine China Everyday dinnerware b Determine the total shipping and receiving costs to be allocated to the fine china if 2,300 boxes are shipped.
Fanning Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 Assume Fanning needs to allocate two major overhead costs ($34,600 of employee fringe benefits and $25,740 of indirect materials costs) among the three jobs. 3 Total Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. Indirect Materials: Home 1 2 3 Total Expected Costs Direct labor Direct materials Fringe benefits Indirect materials Allocation Rate Total cost Home 1 $ 71,000 92,000 $ $ $ 0.10 0.10 0.10 Allocation Rate X $ 71,000 X X X x X Home 2 $ 99,000 141,000 x X Weight of Base The cost components to determine the total cost of each house: Home 1 Home 2 $ 71,000 $ 71,000 $ 99,000 $ 176,000 Weight of Base Home 3 $ 176,000 196,000 $ 0 = = =…
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000
Directions Below is information for Blue Company. Using this information, answer the following questions on the "Calculation" tab in the file. Show your work (how you got your answer) and format appropriately. Blue company has prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units): Sales $ 20,000 Variable expenses 12,000 Contribution margin 8,000 NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below. Fixed expenses 6,000 Net operating income $ 2,000 Questions:…

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