What is the product cost per loaf? ABD's Breads produces loaves of bread,which sell for $6.00 each. During thecurrent month, ABD produced 3,500 loavesof bread, but only sold 3,200 loaves. Thevariable cost per loaf was $2.50. Totalfixed manufacturing costs were $2,100andfixed marketingadministrative costs were $1,500.totalandWhat is the product cost per loaf underabsorption costing?

Explanation of Absorption Costing: This is a costing method that includes all manufacturing costs,…

Answered: ABD's Breads produces loaves of bread,…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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Similar questions

Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the carrying cost for one pound of oats is 0.45. Required: 1. Compute the economic order quantity for oats. 2. Compute the carrying and ordering costs for the EOQ.
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Jax Inc., which uses a volume-based cost system, produces dog houses, and has a gross profit margin of 24%. Direct materials cost $3 per unit, and direct labor costs $5 per unit. Manufacturing overhead is applied at a rate of 142% of direct labor cost. Non manufacturing costs are $8 per unit. How much does each dog house sell for? (Round your answer to 2 decimals)
Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost.
Largo, Inc., which uses a volume-based cost system, produces cat condos, and has a gross profit margin of 67%. Direct materials cost $19 per unit, and direct labor costs $14 per unit. Manufacturing overhead is applied at a rate of 240% of direct labor cost. Nonmanufacturing costs are $37 per unit. How much does each cat condo sell for?
Accel Corp makes two products: C and D. The following data have been summarized (Click the icon to view the data.) Accel Corp desires a 28% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Accel have to charge the customer to achieve that gross profit? Round to two decimal places Begin by selecting the formula to compute the amount that the company should charge for each product Direct labor cost per unit Direct materials cost per unit Indirect manufacturing cost per unit Product cost as a percentage of sales price Target gross profit percentage Total product cost per unit Get more help. Clear all Show work Required sales price per unit Check answer
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $199.35 $311.50 $262.70 Direct labor costs 37.10 107.10 43.40 Other variable costs 96.00 82.00 148.00 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. (a) Determine the number of direct labor hours per unit. (Round answers to 2 decimal places, e.g. 52.75.) Direct labor Product D hours per unit Product E hours per unit Product F hours per unit
Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Product D E F Selling price $199.35 $311.50 $262.70 Direct labor costs 37.10 107.10 43.40 Other variable costs 96.00 82.00 148.00 The company has 2,100 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $14. Determine the contribution margin per direct labor hour. (Round intermediate calculation and final answers to 2 decimal places, e.g. 52.75.) Product D Product E Product F Contribution margin per direct labor hour $ $ $
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 $13 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. Product Amount Glasses $fill in the blank 1 Fine China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs to be allocated to the fine china if 1,900 boxes are shipped.fill in the blank 1 of 1$
Bright view Manufacturing has the following.
Doc Rowan Corporation sells one product, its waterproof hiking boot. It began operations in the current year and had an ending inventory of 8,500 units. The company sold 20,000 units throughout the year. Fixed manufacturing overhead is $5 per unit, and total manufacturing cost per unit is $20 (including fixed manufacturing overhead costs). What is the difference in net income between absorption and variable costing?. Tag - Cost Account.

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