Company Financial Projections: Projection Category Sales Production Value 35,000 bars 40,000 bars Variable Manufacturing Cost per Bar $4.25 Sales and Distribution Costs per Bar $0.50 Total Fixed Manufacturing Overhead $68,000 Fixed Administrative Overhead Required: $32,000 Compute the projected product cost per bar produced under absorption costing.

Company Financial Projections: Projection Category Sales Production Value 35,000 bars 40,000 bars Variable Manufacturing Cost per Bar $4.25 Sales and Distribution Costs per Bar $0.50 Total Fixed Manufacturing Overhead $68,000 Fixed Administrative Overhead Required: $32,000 Compute the projected product cost per bar produced under absorption costing.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 28BEB: Quality Cost Report Loring Company had total sales of 2,400,000 for fiscal 20X1. The costs of...

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Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit $30,000 $2.00 $45,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product X: O $20,000 Product X 400 $60,000 $50,000 $25,000 $15,000 $20,000 Product Y 600 $60,000 $15,000 $10,000 $35,000 Total 1,000 $120,000 $40,000 $25,000 $55,000 $50,000 $5,000
Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit Product A 400 $60,000 Product B 600 $60,000 $25,000 $15,000 $10,000 $15,000 Total 1,000 $120,000 $40,000 $25,000 $25,000 $30,000 $55,000 $50,000 $5,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product A:
Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin $0 O $10,000 ($25,000) ($10,000) product X $50,000 O $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? a total $130,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X. $50,000 $50,000 $30,000 $25,000 $5,000
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Question: Gangwer Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct Labor Variable Manufacturing overhead Variable selling and administrative expense Fixed Costs per year: Fixed manufacturing overhead Fixed Selling and administrative expense The absorption costing unit product cost is: A. $95 B. $119 6,000 $ 43 $ 13 $ 5 $ 1 $2,04,000 $ 1,38,000 C. $61 D. $56
A manufacturer reports the following information on rits product. Solve this question general Accounting
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Cost Accounting Answer Please
Production and sales volume Selling price lity is yzed as follows: Direct material Direct labour Manufacturing overhead Gross profit Selling and administrative Operating profit a. b. C. d. Activity Supervision Inspection T-SHIRTS 60,000 units £16.00 Lion Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity cost £100,920 £124,000 £ 2.00 £4.50 £ 2.00 £ 7.50 £4.00 £ 3.50 T-SHIRTS 0.75 DLH/unit 45,000 DLHS 60,000 inspections SWEATSHIRTS 35,000 units £29.00 Activities demanded £5,00 £7.20 £3.00 £13.80 £ 7.00 £ 6.80 Activity-cost driver Direct labour hours (DLH) Inspections SWEATSHIRTS 1.2 DLH/unit 42,000 DLHS 17,500 inspections Under the revised ABC system, total overhead costs allocated to Sweatshirts will be £ 48,720. £ 76,720. £224,920. none of the above.