Cost Estimation & CVPIt is budget season and Margo, Inc is planning for next year and requires abreakdown of the factory overhead cost into the fixed and variableelements. The following data on the OH cost and machine hours areavailable for the past six months:OH Cost Machine Hours$ 23,910$ 23,397$24,153$23,964$ 23,732$ 23,559$ 142,715MonthJanuaryFebruaryMarchAprilMayJuneTotal1,8001,2302,0701,8601,6021,4109,972Required:1. Assume that Mago uses the high-low method of analysis, determine thevariable OH cost per machine hour and monthly fixed costAdditional Sales & Cost information for Margo'sSales PriceMachine Hours Per unitDirect Labor Hours Per UnitDirect labor cost per unitDirect Material cost per unit2$75.3022.52$$40.0018.502. How many units do they need to sell to breakeven in one month3. How many units do they need to sell to earn a pre-tax profit of $52,410 in one month4. Create a contribution margin income statement for the pre-tax profit of $52,410

Point at which total cost of production is equal to revenue for a product. At this point there is…

Cost Estimation & CVP It is budget season and Margo, Inc is planning for next year and requires a breakdown of the factory overhead cost into the fixed and variable elements. The following data on the OH cost and machine hours are available for the past six months:

Cost Estimation & CVP It is budget season and Margo, Inc is planning for next year and requires a breakdown of the factory overhead cost into the fixed and variable elements. The following data on the OH cost and machine hours are available for the past six months:

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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Factory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses Manufacturing supplies Power and light Sales commissions Factory insurance Production supervisor wages Production control wages Executive officer salaries Materials management wages Factory depreciation Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. $297,290 16,290 48,600 328,580 28,300 142,930 37,160 303,010 40,880 23,150 Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costs
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Narp. Ine, is preparing a budget for next vear and requires a breakdown of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and the units produced are available for the last six months: 25) Cost of Steam Units Produced July August September. October $ 15,850 13,000 16,370 20,000 17,600 18.500 3,000 c22,000 2,900 3,750 2,670 2.650 16.970 November. December. Total.... S101.320 ans Sharp uses the high-low method of analysis. Required: Show your work in answering the question. Failure to do so results in zero points a. What is the estimated variable cost of steam per unit produced? b. What is the total fixed cost? c. If there were 2,500 units produced the cost of steam would be?
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Coe Parts applies fixed overhead at the rate of $6.82 per unit. Budgeted fixed overhead was $198,600. This month 28,240 units were produced, and actual fixed overhead was $193,490. Required: a. What are the fixed overhead price and production volume variances for Coe Parts? b. What was budgeted production for the month? Complete this question by entering your answers in the tabs below. Required A Required B Jhm What are the fixed over ad price and production volume variances for Coe Parts? Note: 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. Do not round your intermediate calculations. Round your final answers to the nearest dollar. Fixed overhead price variance Fixed overhead production volume variance Required A Required B >
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Production, Direct Labor, Direct Materials, Sales Budgets, Budgeted Contribution Margin Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven, controller, is responsible for preparing Greiner's master budget and has assembled the following data for the coming year. The direct labor rate includes wages, all employee-related benefits, and the employer's share of FICA. Labor saving machinery will be fully operational by March. Also, as of March 1, the company's union contract calls for an increase in direct labor wages that is included in the direct labor rate. Greiner expects to have 6,600 glare filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month's projected sales in inventory. Information on the first four months of the coming year is as follows: January February March April Estimated unit sales 37,200 35,400 40,000 40,000 Sales price per unit $80 $80 $75 $75 Direct labor…
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