8- Suppose that a cement factory has a normal production capacity of 80.000 tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are the data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL, (c) Factory overhead 1.000.000 TL. As an internal auditor, you have explored that 100% of the direct labor costs and 80% of the factory overhead is fixed. Now, what would be the cost of cement sold when normal absorption costing is used? 450.000 TL O 500.000 TL 550.000 TL 600.000 TL

8- Suppose that a cement factory has a normal production capacity of 80.000 tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here are the data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL, (c) Factory overhead 1.000.000 TL. As an internal auditor, you have explored that 100% of the direct labor costs and 80% of the factory overhead is fixed. Now, what would be the cost of cement sold when normal absorption costing is used? 450.000 TL O 500.000 TL 550.000 TL 600.000 TL

Name: 8- Suppose that a cement factory has a normal production capacity of
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Description: 8- Suppose that a cement factory has a normal production capacity of 80.000tons. In March, 20.000 tons were produced and 15.000 tons were sold. Here arethe data: (a) Direct material cost 200.000 TL, (b) Direct labor cost 800.000 TL,(c) Factory overh

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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Santorini Ltd. has accumulated the following data over a six-month period: Indirect Labor Hours Indirect Labor Cost January 500 $ 9,500 February 400 9,000 March 600 10,000 April 800 12,000 May 700 11,000 June 650 10,500 Determine the formula that could be used to determine Santorini’s indirect labor cost at various levels of production using the high-low method.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $16,500 + $0.13 per machine-hour $ 20,250 Maintenance $39,000 + $1.90 per machine-hour $ 61,300 Supplies $0.60 per machine-hour $ 8,800 Indirect labor $94,400 + $1.60 per machine-hour $ 119,300 Depreciation $68,200 $ 69,900 During March, the company worked 13,000 machine-hours and produced 7,000 units. The company had originally planned to work 15,000 machine-hours during March. Required: 1. Prepare a flexible budget for March. 2. Prepare a report showing the spending variances for March.
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
Assume (1) estimated fixed manufacturing overhead for the coming period of $207,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to: (Round your intermediate value of "Predetermined overhead rate" to two decimal places.) Multiple Choice $317,000. $311,040. $325,926. $322,564.
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 42,100 $ 1,200 $ 14,600 $ 11,400 For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine- hours in June. Note that the company's direct labor is a fixed cost. Direct materials Direct labor Cost per Machine- Hour $ 5.50 Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.25
The following costs were incurred in March: Direct materials = Php1,950,000 Direct labor = PhP1,200,000 Manufacturing overhead = PhP700,000 Selling expenses = PhP550,000 Administrative expenses = PhP950,000 Calculate the prime costs during the month. Show the solution.
Through November, Cameron has received gross income of $120,000. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,000 of revenue at a cost to Cameron of $3,000, which is deductible for AGI. In contrast, engagement 2 will generate $5,000 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. Description Engagement 1 Engagement 2 (1) Gross income before new work engagement $ 120,000 $ 120,000 (2) Income from engagement 7,000 5,000 (3) Additional for AGI deduction (3,000) (4) Adjusted gross income $ 124,000 $ 125,000 (5) Greater of itemized deductions or standard deduction (6) Deduction for QBI (1,000) Taxable income
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