None Cameron Company manufactures model airplane kits. Direct materials are seven ounces of plastic per kit andthe plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in thebudgeting process. Each kit requires 0.75 hours of direct labor at an average cost of $15 per hour.Manufacturing overhead is allocated using direct labor hours as the allocation base. The company hasprepared the following budgets:View the budgets.Cameron Company projects sales of 350, 150, 450, and 550 kits for the next four quarters.Cameron Company has no kits in beginning inventory. Determine the cost per kit to manufacture the modelairplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places.Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places,$X.XX.)Total projected manufacturing cost per kit

To calculate the cost per kit to manufacture the model airplane kits, follow these steps:Direct…

Answered: Cameron Company manufactures model…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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Similar questions

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Preston, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.25 hours of direct labor at an average cost of $40 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: 1(Click the icon to view the budgets.) Preston projects sales of 200, 500, 700, and 600 kits for the next four quarters. Preston has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $X.XX.) (1) Direct materials cost per kit (2) Direct labor cost per kit…
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Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget for the expected level of direct labor hours for the coming year.
I need help with this problem. Please explain how you get your figures. Especially the direct materials cost per ounce amount.
Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $86,000 $0.20 Power $0.45 Indirect Labor $140,000 $2.10 Rent $35,000 Next year, Palladium expects production to require 88,000 direct labor hours. Prepare an overhead budget that reflects production that is 15% higher than expected and for production that is 15% lower than expected.

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