Controller Incorporated produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour):ClashSales price (per unit)$ 430Slash$ 358Costs (per unit):Direct materials8650Direct labor7498Variable factory overhead (@ $15 per DLH)603019Allocated fixed factory overhead (based on DLHS)Marketing expenses (all variable)24125443Total costs298233Operating income (per unit)$ 132$ 125There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.Both products are produced through the same production departments.In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?Multiple ChoiceSlash, $137.00.

When there are multiple products but only one key factor :-Step 1:- Rank the product on the basis of…

Answered: Controller Incorporated produces two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Doom Bhd manufactures and sells a single product. Cost data for the product are givenbelow:Variable costs per unit:Direct materials RM 7Direct labour RM 10Variable manufacturing overhead RM 5Variable selling and administrative overhead RM 3Total variable cost per unit RM 25Fixed costs per month:Fixed manufacturing overhead RM315,000Fixed selling and administrative overhead RM245,000RM560,000The product sells for RM60 per unit. Production and sales data for July and August, that is,the first two months of operations, follow:Units produced Units soldJuly 17,500 15,000August 17,500 20,000The company’s Accounting Department has prepared an absorption costing income statementfor July and August as presented below:July AugustSales RM 900,000 RM 1,200,000(-) Cost of goods sold (RM 600,000) (RM 800,000)Gross margin RM 300,000 RM 400,000(-) Selling and administrative expenses (RM290,000) (RM 305,000)Net operating income RM10,000 RM 95,000As a cost accountant, you would like to suggest that the…
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Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): Clash Slash Sales price (per unit) $ 420 $ 348 Costs (per unit): Direct materials 85 49 Direct labor 72 96 Variable factory overhead (@ $15 per DLH) 60 30 Allocated fixed factory overhead (based on DLHs) 24 12 Marketing expenses (all variable) 53 42 Total costs 294 229 Operating income (per unit) $ 126 $ 119 There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?
roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,200 Direct labor 31 Selling and admin. exp. 70,300 Factory overhead 23 Selling and admin. exp. 22 Total variable cost per unit $166 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…
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The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.75 Units Produced 39,000 Units Sold 35,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $20,000 Question Content Area Prepare an income statement under variable costing method. Appliance AppsIncome Statement $- Select - - Select - $- Select - - Select - $- Select - - Select - - Select - $- Select - Question Content Area Prepare a reconciliation to the income under the absorption method. Appliance AppsReconciliation $- Select - - Select - $- Select -
The Mullin Company manufactures several different products. Unit costs associated with Product 10 are as follows: Direct materials $92 32 Direct manufacturing labor Variable manufacturing overhead 12 32 26 Fixed manufacturing overhead Sales commissions (2% of sales) 71% Administrative salaries Total $200 What is the percentage of the total variable costs per unit associated with Product 10 with respect to total cost? 81% 68% 84%
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Amman company has the following of the unit costs associated with one of its products, Product A, are as follows: Direct materials $110 Direct manufacturing labor 90 Variable manufacturing overhead 45 Fixed manufacturing overhead 33 Sales commissions (2% of sales) 10 Administrative salaries 28 Total S316 What are the direct variable manufacturing costs per unit associated with Product A? 288 200 245 255
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