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%24 %24 %24 %24 Carla Vista Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerningaspecial-order product, TC-1 TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-Lis sold at cost plus a markup of 40% of cost. The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC-1. The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase sales quantities in the slack periods. Andrea Parley, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter 3. 4. 1. 2. Direct materials $259,600 $94,400 000'9 Direct labor 155,760 141,600 Manufacturing overhead 180,540 114,460 147,500 006' Total $312,700 2265,500 $525,100 Production in batches 5. Unit cost (per batch) $62,540 065'6 $53,100 $52,510 Restate the quarterly data by applying overhead as a set rate per batch. Quarter Costs 1. Direct materials Direct labor Manufacturing overhead Applied Production in batches Unit cost (per batch) eTextbook and Media Attenpts O of 3 used Submit Anwer

%24 %24 %24 %24 Carla Vista Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerningaspecial-order product, TC-1 TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-Lis sold at cost plus a markup of 40% of cost. The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC-1. The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase sales quantities in the slack periods. Andrea Parley, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter 3. 4. 1. 2. Direct materials $259,600 $94,400 000'9 Direct labor 155,760 141,600 Manufacturing overhead 180,540 114,460 147,500 006' Total $312,700 2265,500 $525,100 Production in batches 5. Unit cost (per batch) $62,540 065'6 $53,100 $52,510 Restate the quarterly data by applying overhead as a set rate per batch. Quarter Costs 1. Direct materials Direct labor Manufacturing overhead Applied Production in batches Unit cost (per batch) eTextbook and Media Attenpts O of 3 used Submit Anwer

Cornerstones of Cost Management (Cornerstones Series)
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 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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%24 %24 %24 %24 Carla Vista Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerningaspecial-order product, TC-1 TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-Lis sold at cost plus a markup of 40% of cost. The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC-1. The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase sales quantities in the slack periods. Andrea Parley, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter 3. 4. 1. 2. Direct materials $259,600 $94,400 000'9 Direct labor 155,760 141,600 Manufacturing overhead 180,540 114,460 147,500 006' Total $312,700 2265,500 $525,100 Production in batches 5. Unit cost (per batch) $62,540 065'6 $53,100 $52,510 Restate the quarterly data by applying overhead as a set rate per batch. Quarter Costs 1. Direct materials Direct labor Manufacturing overhead Applied Production in batches Unit cost (per batch) eTextbook and Media Attenpts O of 3 used Submit Anwer
Transcribed Image Text:%24 %24 %24 %24 Carla Vista Products Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerningaspecial-order product, TC-1 TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-Lis sold at cost plus a markup of 40% of cost. The sales department is unhappy because fluctuating unit production costs significantly affect selling prices. Sales personnel complain that this has caused excessive customer complaints and the loss of considerable orders for TC-1. The production department maintains that each job order must be fully costed on the basis of the costs incurred during the period in which the goods are produced. Production personnel maintain that the only real solution is for the sales department to increase sales quantities in the slack periods. Andrea Parley, president of the company, asks you as the company accountant to collect quarterly data for the past year on TC-1. From the cost accounting system, you accumulate the following production quantity and cost data. Quarter 3. 4. 1. 2. Direct materials $259,600 $94,400 000'9 Direct labor 155,760 141,600 Manufacturing overhead 180,540 114,460 147,500 006' Total $312,700 2265,500 $525,100 Production in batches 5. Unit cost (per batch) $62,540 065'6 $53,100 $52,510 Restate the quarterly data by applying overhead as a set rate per batch. Quarter Costs 1. Direct materials Direct labor Manufacturing overhead Applied Production in batches Unit cost (per batch) eTextbook and Media Attenpts O of 3 used Submit Anwer
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