amount of (over) or underapplied factory overhead
Q: Entries for Factory Overhead. Blend Rite Inc. assembles and sells electric mixers. All parts are…
A: The direct costs incurred are debited to work in process account. The indirect costs incurred are…
Q: JKL Ltd has prepared the following cost estimates for the manufacture of a subassembly component…
A: If the company manufactures the cost of per unit is $38 If the company buys the per unit cost is $32…
Q: Carla Vista Corporation manufactures a single product. Monthly production costs incurred in the…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…
A: Above questions is of make or buy nature. Financial advantage (disadvantage) = Cost of manufacturing…
Q: Supler Corporation produces a part used in the manufacture of one of its products. The unit product…
A: Financial Advantage :— If benefits from the alternative plan is more than the current plan then…
Q: Xia Co. currently buys a component part for $7 per unit. Xia believes that making the part would…
A: RELEVANT COST Relevant costs can be defined as any cost relevant to a decision. A relevant cost…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: Financial advantage is the additional benefit the company earns from accepting special orders. The…
Q: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its…
A: Solution 1: Actual rate of variable overhead = $125,000 / 170000 = $0.735294 per DLH Standard rate…
Q: Sent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: Differential cost or extra cost are terms used to describe the price distinction between two…
Q: Ryan Corporation manufactures auto steering systems. Prime cost and machine time estimates for one…
A: Overhead costs are the usual business costs incurred by the organization to run the business. These…
Q: The Park Avenue Corporation currently makes a part required in its finished product. The company…
A: Manufacturing Cost: Manufacturing costs are the cost which is incurred for producing or…
Q: Juett Company produces a single product. The cost of producing and selling a single unit of this…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85,…
A: Let's break down the costs and compare:In-house manufacturing cost per unit for Alpha:Direct…
Q: Kent County Company produces a single product. The standard cost card for the product follows: 3…
A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…
Q: Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: Cost when producing Direct materials $4.00 Direct labor…
Q: Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would…
A: Relevant costs are those costs that are affected by a management decision. For instance here the…
Q: Fogerty Company makes two products-titanlum Hubs and Sprockets. Data regarding the two products…
A:
Q: Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A…
A: A. Cost to buy = No. of units x Purchase cost per unit = 6,100 units x $7.00 per unit = $42,700
Q: Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135,…
A: The management needs to decide on whether manufacture the product or purchase from an outside…
Q: Lucia Company has set the following standard cost per unit for direct materials and direct labor.…
A: Variances are the differences between the estimated costs and the actual costs. If the estimated…
Q: Waterway Co. computed an activity-based overhead rate for machining costs ($600000) of $5 per…
A: Under Activity Based Costing, costs are allocated to products based on activity consumed by them in…
Q: 0 units. The company has traditionally used direct labor-hours as the basis for applying all…
A: Activity based costing is the costing in which overheads cost are allocated to a product based on…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Contribution margin: The difference between the sales and the variable costs is called contribution…
Q: (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate…
A: The material variance is the variation between the actual cost of materials employed in production…
Q: Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells…
A: As per authoring guidelines, the first three sub-parts are answered. Please repost the question…
Q: None
A: Cash flow on Total Assets Ratio = Net Cash flow from Operating Activities/Average Total…
Q: Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data…
A: From the given information, Total overhead = $268,698+ $37,324+ $633,895 = $939,917 Overhead applied…
Q: Cabio Company manufactures two products, Product C and Product D. The company estimated it would…
A:
Q: Haver Company currently produces component RX5 for its sole product. The current cost per unit to…
A: Given: Direct materials $ 4.00 100% variable Direct labor 8.00 100% variable Overhead…
Q: ompany manufactures two products called Alpha and Beta that sell for $185 and $120, respectively.…
A: Solution: Alpha Beta Sales Price 185 120 Variable costs: Direct materials 30 10…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Cost of goods manufactured: Cost of goods manufactured means total manufacturing costs; including…
Q: (a)GEMhas an opportunity to sell 10 000 units to an overseas customer. Import duties and other…
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: A company manufactures a product with three models, each with different direct material costs and…
A: Activity based costing means where the product is valued on the basis of actual direct material ,…
Q: artinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: The question is based on the concept of Cost Accounting. Fixed cost is the cost that remains the…
Q: The Park Avenue Corporation currently makes a part required in its finished product. The company…
A: Total savings = Total cost of manufacture - Total cost of purchase
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: The incremental cost is also known as marginal cost. It is an additional cost incurred due to an…
Q: The Park Avenue Corporation currently makes a part required in its finished product. The company…
A: When there are alternatives of manufacturing the product inhouse or purchase from outside vendor ,…
Blend It Rite Inc. assembles and sells electric mixers. All parts are purchased and labor is paid on the basis of P22 per mixer assembled. The cost of the parts per mixer totals P20. As the company handles only this one product, the unit cost basis for applying factory
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- A VACUUM MANAUFACTUER HAS PREPARED THE FOLLOWING HAS THE FOLLOWING COST DATA FOR MANUFACTURING ONE OF ITS ENGINE COMPONENTS BASED ON THE ANNUAL PRODUCTION OF 50,000 UNITS DIRECT MATERIALS $75,000 DIRECT LABOR $100,000 TOTAL $175,000 IN ADDITION, VARIABLE FACTORY OVERHEAD IS APPLIED AT $7.50 PER UNIT.Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4,200 units were produced: Direct materials $4.00 Direct labor 1.50 Manufacturing overhead 1.30 Total $6.80 Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 5,900 units of part A for the next year’s production. Cory Corporation has offered to supply 5,900 units of part A at a price of $7.00 per unit. If Gent accepts the offer, all of the variable costs and $1,260 of the fixed costs will be avoided. A. Calculate the differential cost? Cost to buy $_____ Cost to make _____ Differential cost $_____ B. Should Gent Designs accept the offer from Cory Corporation? Gent Designs ______Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 12,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 8.40 Direct labor 5.40 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 3.20 Unit product cost $ 18.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 35% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 1 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 2 minutes on this machine and that has a contribution margin of $4.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the…
- Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 30 21 8 Traceable fixed manufacturing overhead 17 13 16 $ 105 Alpha Beta The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. $12 20 Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? Beta 19 9 11 $ 77Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) __________________________________________________________________________________________ Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per…Dhapa
- Marvel Parts, Incorporated, manufactures auto accessories including a set of seat covers that can be adjusted to fit most cars. According to its standards, the factory should work 1,015 hours each month to produce 2,030 sets of seat covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 1. Materials price vanance 1. Materials quantity variance 2. Labor rate variance 2 Labor efficiency variance 3. Vanable overhead rate variance 3. Variable overhead efficiency variance Per Set of Covers During August, the factory worked 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Total $ 42,000 $ 6,300 $3,150 $ 29.20 4.00 1.90 $ 35.10 Per Set of Covers $28.00 4.20 2.10 $34.30 At standard, each set of covers should…Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 3,900 units were produced: Direct materials $4.00 Direct labor 1.40 Manufacturing overhead 1.30 Total $6.70 Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 5,800 units of part A for the next year’s production. Cory Corporation has offered to supply 5,800 units of part A at a price of $6.90 per unit. If Gent accepts the offer, all of the variable costs and $1,170 of the fixed costs will be avoided. A. Calculate the differential cost? Cost to buy $fill in the blank 1 Cost to make fill in the blank 2 Differential cost $fill in the blank 3 B. Should Gent Designs accept the offer from Cory Corporation?
- Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4,000 units were produced: Direct materials $4.00 Direct labor 1.40 Manufacturing overhead 1.20 Total $6.60 Variable manufacturing overhead is applied at $1.00 per unit. The other $0.20 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next year's production. Cory Corporation has offered to supply 6,000 units of part A at a price of $6.80 per unit. If Gent accepts the offer, all of the variable costs and $800 of the fixed costs will be avoided. A. Calculate the differential cost? Cost to buy Cost to make Differential cost 2$ B. Should Gent Designs accept the offer from Cory Corporation? Gent DesignsHo Cabinet Company has developed the following overhead cost formulas: Overhead Cost Cost Formula Depreciation $600 Lubrication $150 plus $0.70 per machine hour Utilities $0.50 per machine hour Based on these cost formulas, the total overhead cost expected for Ho Cabinet Company if 1,200 machine hours are worked is:Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
