Carmelita Inc., has the following information available:   Costs from Beginning Inventory Costs from current Period  Direct materials $5,100 $22,000  Conversion costs 5,100 158,500 At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,800 units were started and completed. Ending inventory contained 300 units that were 24% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The equivalent units of production for direct materials and conversion costs, respectively, were a.5,157 for direct materials and 5,157 for conversion costs b.5,157 for direct materials and 5,100 for conversion costs c.4,800 for direct materials and 5,157 for conversion costs d.5,100 for direct materials and 5,157 for conversion costs         If sales are $277,000, variable costs are 75% of sales, and operating income is $44,500, what is the operating leverage? a.0.0 b.1.2 c.1.6 d.4.7           Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost   Activity Base Procurement $350,500           Number of purchase orders Scheduling $206,400           Number of production orders Materials handling $451,100           Number of moves Product development $741,700           Number of engineering changes Production $1,576,500           Machine hours     Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,130     270       1,500     14       1,900     2,200   Tape drives 1,800     225       510     5       8,300     3,900   Wire drives 11,900     1,000       3,500     21       10,100     2,500   Determine the activity rate per production order for scheduling. a.$19.66 b.$234.45 c.$77.66 d.$138.06

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Carmelita Inc., has the following information available:

  Costs from Beginning Inventory Costs from current Period
 Direct materials $5,100 $22,000
 Conversion costs 5,100 158,500

At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,800 units were started and completed. Ending inventory contained 300 units that were 24% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.

The equivalent units of production for direct materials and conversion costs, respectively, were

a.5,157 for direct materials and 5,157 for conversion costs
b.5,157 for direct materials and 5,100 for conversion costs
c.4,800 for direct materials and 5,157 for conversion costs
d.5,100 for direct materials and 5,157 for conversion costs
 
 
 
 

If sales are $277,000, variable costs are 75% of sales, and operating income is $44,500, what is the operating leverage?

a.0.0
b.1.2
c.1.6
d.4.7
 
 
 
 
 

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

 
Activity Cost
 
Activity Base
Procurement $350,500           Number of purchase orders
Scheduling $206,400           Number of production orders
Materials handling $451,100           Number of moves
Product development $741,700           Number of engineering changes
Production $1,576,500           Machine hours
 
 
Number of
Purchase
Orders

Number of
Production
Orders

Number
of
Moves

Number of
Engineering
Changes


Machine
Hours

Number
of
Units
Disk drives 4,130     270       1,500     14       1,900     2,200  
Tape drives 1,800     225       510     5       8,300     3,900  
Wire drives 11,900     1,000       3,500     21       10,100     2,500  

Determine the activity rate per production order for scheduling.

a.$19.66
b.$234.45
c.$77.66
d.$138.06
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education