ISKimmel, Accounting, 7eHelp I System AnnouncementsCALCULATORPRINTERCompute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.Fixed manufacturing overheadper unit%$4Fixed selling and administrative expensesper unit%24Compute the desired ROI per unit.ROI%24per unitCompute the target selling price.Target selling priceClick if you would like to Show Work for this question:Open Show Work Kimmel, Accounting, 7eHelp | System AnnouncementsCALCULATORPRINTER VERSION1 BACKExercise 21-07Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.Per UnitTotalDirect materials$440Direct labor$300Variable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expenses$ 73$1,785,000$ 56Fixed selling and administrative expenses$ 553,000The company has a desired ROI of 22%. It has invested assets of $57,400,000. It anticipates production of 3,500 units per year.Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.Fixed manufacturing overheadper unitFixed selling and administrative expensesper unitMacBook Air

ROI per unit = (Invested Capital x ROI)/total units

Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses. Fixed manufacturing overhead per unit %24 Fixed selling and administrative expenses per unit %$4 Compute the desired ROI per unit. ROI per unit Compute the target selling price. Target selling price %24

Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses. Fixed manufacturing overhead per unit %24 Fixed selling and administrative expenses per unit %$4 Compute the desired ROI per unit. ROI per unit Compute the target selling price. Target selling price %24

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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am. 106.
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price…
Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete thecalculations listed below.• Calculate the value of ending inventory under full or absorption costing.• Calculate the value of ending inventory under variable costing.Which method you think is more helpful to managers and why. Cookie Business Productions Costs: Direct material $ 0.60 Direct labor $ 1.00 Variable manufacturing overhead $ 0.40 Total variable manufacturing costs per unit $ 2.00 Fixed manufacturing overhead per year $ 139,000.00 In addition, the company has fixed selling and administrative costs: Fixed selling costs per year $ 50,000.00 Fixed administrative costs per year $ 65,000.00 Selling price per cookie $ 3.75 Number of cookies produced 2,780,000 Number of cookies sold 2,600,000 Full (absorption) costing : Full…
Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative Total fixed costs Operating profits Required: Prepare a profit variance analysis for Fournier Fixtures actual orders for 414,400 units) $ 7,873,600 for 370,000 units) $ 7,400,000 2,646,400 238,000 1,218,400 876,000 $ 4,978,800 $ 2,894,800 1,632,000 556,600 372,000 $ 2,560,600 $ 334,200 2,350,000 218,000 1,082,000 786,000 $ 4,436,000 $ 2,964,000 1,660,000 540,000 405,000 $ 2,605,000 $ 359,000 Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Sales revenue Variable costs: Materials Direct labor Variable overhead Variable marketing and administrative Total variable costs Contribution margin Fixed costs: Manufacturing overhead Marketing…
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Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 46% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28 Direct labor 16 Factory overhead (46% of direct labor) 7.36 Total cost per unit $51.36 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 14% of the direct labor costs.
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Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.
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Subject : Accounting
Subject:
Question 1 (i) A cost that can be traced to a cost object is known as A. A fixed cost B. A variable cost C. A direct cost D. An indirect cost (ii) Which of the following terms denotes the response of a cost to change in business activity: A. Cost accumulation B. Cost apportionment C. Cost reapportionment D. Cost behaviour (iii) Production of 100 units requires one supervisor at £30,000 p.a. If production is between 100-200 units then two supervisors are required at a total of £60,000 p.a. Such cost behaviour would be described as: A. Fixed B. Stepped fixed C. Variable D. Semi-variable