No. 3A company produce jelly. The jars of the jelly are packed six to a box. The following cost areincurred in the factory:Receptionist's wagesTelephoneUtilitiesJarsSugarFruitRental of Santa Claus suit (for the Christmasparty for factory employees' children)Supervisory labour salariesInsurance on factory buildingDepreciation on factory equipmentOil to lubricate filling equipmentPectin (thickener used in jams and jellies)BoxesDepreciation on the factory buildingCooking equipment operators' wagesFilling equipment operators' wagesPackers' wagesJanitors' wagesClassify cach of the costs as direct materials, direct labour, or manufacturing overhead by usingthe following table. The row for "Jars" is filled in as an example.CostsDirect MaterialsDirect LabourManufacturing OverheadJars

Direct material is the cost of material that is used directly in the manufacturing of goods. Direct…

A company produce jelly. The jars of the jelly are packed six to a box. The following cost are incurred in the factory: Jars Receptionist's wages Telephone Utilities Sugar Fruit Pectin (thickener used in jams and jellies) Rental of Santa Claus suit (for the Christmas party for factory employees' children) Supervisory labour salaries Insurance on factory building Depreciation on factory equipment Oil to lubricate filling equipment Boxes Depreciation on the factory building Cooking equipment operators' wages Filling equipment operators' wages Packers' wages Janitors' wages Classify each of the costs as direct materials, direct labour, or manufacturing overhead by using the following table. The row for "Jars" is filled in as an example. Manufacturing Overhead Costs Direct Materials Direct Labour Jars

A company produce jelly. The jars of the jelly are packed six to a box. The following cost are incurred in the factory: Jars Receptionist's wages Telephone Utilities Sugar Fruit Pectin (thickener used in jams and jellies) Rental of Santa Claus suit (for the Christmas party for factory employees' children) Supervisory labour salaries Insurance on factory building Depreciation on factory equipment Oil to lubricate filling equipment Boxes Depreciation on the factory building Cooking equipment operators' wages Filling equipment operators' wages Packers' wages Janitors' wages Classify each of the costs as direct materials, direct labour, or manufacturing overhead by using the following table. The row for "Jars" is filled in as an example. Manufacturing Overhead Costs Direct Materials Direct Labour Jars

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

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Cotton White, Incorporated, makes specialty clothing for chefs. The company reported the following costs for the current year. Factory rent Company advertising Wages paid to sewing personnel Depreciation on salespersons' vehicles. Thread Utilities for factory Cutting room supervisor's salary President's salary Premium quality cotton material Buttons Factory insurance Depreciation on sewing machines Wages paid to cutters Required: 1. Compute the cost of direct materials for Cotton White. 2. Compute the cost of direct labor for Cotton White. $ 42,000 18,000 75,000 25,000 1,000 22,000 30,000 75,000 42,000 750 15,000 6,000 50,000 3. Compute the cost of manufacturing overhead for Cotton White. 4. Compute the total manufacturing cost for Cotton White. 5. Compute the prime cost for Cotton White. 6. Compute the conversion cost for Cotton White. 7. Compute the total period cost for Cotton White.
This list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH).t Classify each of these items as direct materials, direct labor, or overhead. Glue used to attach labels to bottles containing a patented medicine. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. Insurance on a factory building and equipment. A production department supervisors salary. Rent on factory machinery. Iron ore in a steel mill. Oil, gasoline, and grease for forklift trucks in a manufacturing companys warehouse. Services of painters in building construction. Cutting oils used in machining operations. Cost of paper towels in a factory employees washroom. Payroll taxes and fringe benefits related to direct labor. The plant electricians salaries. Crude oil to an oil refinery. Copy editors salary in a book publishing company. Assume your classifications could be challenged in a court case. Indicate to your attorneys which of your answers for part a might be successfully disputed by the opposing attorneys and why. In which answers are you completely confident?
Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)
The following is a list of costs incurred by several manufacturing companies: a. Bonus for vice president of marketing b. Costs of operating a research laboratory c. Cost of unprocessed milk for a dairy d. Depreciation of factory equipment e. Entertainment expenses for sales representatives f. Factory supplies g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers i. Hourly wages of warehouse laborers j. Lumber used by furniture manufacturer k. Maintenance costs for factory equipment l. Microprocessors for a microcomputer manufacturer m. Packing supplies for products sold, which are insignificant to the total cost of the product n. Paper used by commercial printer o. Paper used in processing various managerial reports p. Protective glasses for factory machine operators q. Salaries of quality control personnel r. Sales commissions s. Seed for grain farmer t. Television advertisement u. Prebuilt transmissions for an automobile manufacturer v. Wages of a machine operator on the production line w. Wages of secretary of company controller x. Wages of telephone operators for a toll-free, customer hotline Instructions Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an X in the appropriate column.
Please help me. Q no.4,5,6,7
Please help me. Thankyou.
King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?
What follows are a number of resources that are used by a manufacturer of futons. Assume thatthe output measure or cost driver is the number of futons produced. All direct labor is paid on an hourly basis, and hours worked can be easily changed by management. All other factoryworkers are salaried.a. Power to operate a drill (to drill holes in the wooden frames of the futons)b. Cloth to cover the futon mattressc. Salary of the factory receptionistd. Cost of food and decorations for the annual Fourth of July party for all factory employeese. Fuel for a forklift used to move materials in a factoryf. Depreciation on the factoryg. Depreciation on a forklift used to move partially completed goodsh. Wages paid to workers who assemble the futon framei. Wages paid to workers who maintain the factory equipmentj. Cloth rags used to wipe the excess stain off the wooden framesRequired:Classify the resource costs as variable or fixed.
Noteworthy, Incorporated, produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment Depreciation on CEO's company car Speakers used in the keyboard Production supervisor's salary Glue and screws used in the keyboards Cost to run an ad on local radio stations Wages of persons who install the speakers $ 820 180 1,140 2,370 250 2,970 Utilities for the factory Personnel manager's salary Wages of person who attaches legs to keyboards Required: 1. Calculate the total product cost for Noteworthy. 2. Calculate the prime cost for Noteworthy. 3. Calculate the manufacturing overhead for Noteworthy. 4. Calculate the direct labor for Noteworthy. 5. Calculate the conversion cost for Noteworthy. 650 1,250 2,640 2,070 6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy. 7. Calculate the total fixed cost (with number of units produced…
The following is a list of costs incurred by several businesses:a. Salary of quality control supervisorb. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborersf. Wages of company controller’s secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operatorsk. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to help customers operate productsn. Hard drives for a microcomputer manufacturero. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing various managerial reportst. Seed for…
The Red Mill Inn incurs costs in three areas of its business operations. These three areas are the kitchen, lodging, and the gift shop. Preparing food in the kitchen creates costs similar to a manufacturing company - materials, labor, and overhead. There are two answers per item.Categorize the following costs first by FIXED or VARIABLE Then by: DIRECT MATERIALS, DIRECT LABOR, OVERHEAD, OR PERIOD COST (EXPENSE) 1. Total cost to clean rooms this month2. Wages of the Inn's maintenance man3. Dishwasher detergent4. Supplies used in the business office5. Cash register tape used in the gift shop6. Depreciation of the office computer7. Electricity used in the kitchen8. Depreciation of the Inn9. Cost of sugar used in the kitchen10. Wages of the two cooks in the kitchen
SM, Inc. makes ski-boards in Davao. Identify the correct matching of terms. * A. Fiberglass is factory overhead B. Plant real estate taxes are a period cost C. Depreciation on delivery trucks is a product cost D. Payroll taxes for workers in the Packaging Dept. are direct labor