**Bonita Industries Standard Direct Materials Quantity Calculation**Bonita Industries produces a product that requires 2.30 pounds of materials per unit. The allowances for waste and spoilage per unit are 0.40 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12 per hour, but a raise averaging $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.40 per hour. The standard production time is 1 hour per unit, with allowances for rest periods and setup at 0.20 hours and 0.10 hours, respectively. The standard direct materials quantity per unit is:- ☐ 2.70 pounds - ☐ 2.30 pounds - ☐ 2.40 pounds - ☐ 2.80 pounds

The Material which is an inventory purchased by the company in order to produce the product for the…

Answered: Bonita Industries produces a product…

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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The Colin Division of Crane Company sells its product for $30.00 per unit. Variable costs per unit include: manufacturing, $13.80; and selling and administrative, $4.00. Fixed costs are: $322000 manufacturing overhead, and $54000 selling and administrative. There was no beginning inventory. Expected sales for next year are 46000 units. Matthew Young, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 46000 units or 54000 units next year. What would the manufacturing cost per unit be under variable costing for each alternative? 46000 units 54000 units $13.80 $13.80 $17.80 $17.80 $19.55 $20.80 $20.80 $19.55
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- Your answer is partially correct. Sheridan Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $12 (75% variable). Sheridan Co. has sufficient capacity to accept a special order for 35,000 units, but at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Determine whether Sheridan Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ Sheridan Co. should not accept the special order.
A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to break-even? Support your answer with computations and also by graphical solution.
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Crane Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.9 pounds of materials. The average waste and spoilage per unit produced under normal conditions is 1.7 pounds. Materials cost $5.30 per pound, but Crane always takes the 2.90% cash discount all of its suppliers offer. Freight costs average $0.38 per pound. Direct labor. Each unit requires 1.73 hours of labor. Setup, cleanup, and downtime average 0.43 hours per unit. The average hourly pay rate of Crane's employees is $9.73. Payroll taxes and fringe benefits are an additional $2.53 per hour. Manufacturing overhead. Overhead is applied at a rate of $5.73 per direct labor hour. Compute Crane's total standard cost per unit. (Round answer to 2 decimal places, eg 1.25.) Total standard cost per unit
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Sheridan Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage is $12 per hour, but a raise which will average $.30 will go into effect soon. Payroll taxes are $1.20 per hour, and employee benefits average $2.4 per hour. Standard production time is 1.5 hour per unit and the allowance for rest periods and setup is 0.70 hours and 0.10 hours. respectively. The standard direct labor rate per hour is
The Company manufactures zamboozas. The selling price of the zamboozas is $45 per unit and variable cost per unit is $30.The company's fixed costs per month is $150,000. Compute the break even point in units and in dollars.

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