Ajax Factories produces pencils at a factory designed to produce 10 million pencils per year. Give true answer this accounting question Ajax Factories produces pencils at a factory designed to produce10 million pencils per year. In 2007 the fixed production overheadrelated to the factory was $1 million, and the factory produced 9million pencils.The inventory cost for each pencil related to the fixed productionoverhead is closest to?a. $0.00b. $0.10c. $0.11

Step 1: Define Overhead CostIt refers to all the indirect costs which are not related to production…

Answered: Ajax Factories produces pencils at a…

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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RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the economic order quantity for Chip? _______________.
RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. What is the total order cost? _______________.
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The company manufactures product X which has a selling price of ₱48 per unit. Unit costs associated with the manufacture and sale of product X based on 30,000 units manufactured and sold each year are: Direct materials→₱10.00; Direct labor→₱6.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱6.00; Variable selling, general and administrative expenses→₱3.00; Fixed selling, general and administrative expenses→₱8.00. The company uses the absorption costing approach to cost-plus pricing . The percentage markup being used to determine the selling price for product X is: a. 100.0% b. 37.5% c. 60.0% d. 40.0%
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A company manufactures and sells a single product that sells for $700 per unit; variable costs are $378. Annual fixed cost are $993, 600. Current yearly sales are $4,360,000. Flannigan company management targets an annual pretax income of $1,285,000. Computer dollar sales to earn the target pretax net income

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