A company manufactured 12,000 units and sold 9,500 units in its second year of operations. The company provided the following information: Particulars Per unit Per year Selling price $320 Direct materials $110 Direct labor $75 Variable manufacturing overhead $15 Sales commission $18 Fixed manufacturing overhead ? Fixed selling and administrative expense $396,000 If the company's unit product cost under absorption costing is $230, what is the amount of fixed manufacturing overhead per year? a. $210,000 b. $360,000 c. $480,000 d. $360,000

A company manufactured 12,000 units and sold 9,500 units in its second year of operations. The company provided the following information: Particulars Per unit Per year Selling price $320 Direct materials $110 Direct labor $75 Variable manufacturing overhead $15 Sales commission $18 Fixed manufacturing overhead ? Fixed selling and administrative expense $396,000 If the company's unit product cost under absorption costing is $230, what is the amount of fixed manufacturing overhead per year? a. $210,000 b. $360,000 c. $480,000 d. $360,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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