**Diego Company Cost Analysis**Diego Company manufactures one product that is sold for $75 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 46,000 units and sold 42,000 units.**Variable Costs per Unit:**- **Manufacturing:** - Direct materials: $25 - Direct labor: $20 - Variable manufacturing overhead: $2- Variable selling and administrative: $4**Fixed Costs per Year:**- Fixed manufacturing overhead: $644,000- Fixed selling and administrative expense: $388,000The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.---**Question:**2. What is the unit product cost under absorption costing?**Unit Product Cost:**[Answer Box]---This information is presented to help understand costing strategies in corporate management, focusing on the importance of distinguishing between variable and fixed cost structures across regions.

Diego Company manufactures one product tha unit in two geographic regions-the East and W following information pertains to the company's operations in which it produced 46,000 units a Variable costs per unit: Manufacturing: Direct materials. Direct labor

Diego Company manufactures one product tha unit in two geographic regions-the East and W following information pertains to the company's operations in which it produced 46,000 units a Variable costs per unit: Manufacturing: Direct materials. Direct labor

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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Larner Corporation is a diversified manufacturer of industrial goods. Ine company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Activity Rates $ 9.00 per direct labor-hour $ 4.00 per machine-hour $70.00 per setup $ 200.00 per order $ 130.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit Number of units produced per year 378 $ 4.50 B52 $ 46.00 $ 3.25 4,000 $ 4.00 500 Total Expected Activity 378 B52 Direct labor-hours 1,500 50 Machine-hours 2,400 50 Machine setups 3 2 Production orders 4 2 Shipments 9 2 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Prev 3 of 6 Novt C
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Koontz Company manufactures two models of industrial components—a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz’s controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 Sales $ 3,000,000 $ 2,000,000 $ 5,000,000 Cost of goods sold 2,300,000 1,350,000 3,650,000 Gross margin 700,000 650,000 1,350,000 Selling and administrative expenses 720,000 480,000 1,200,000 Net operating income (loss) $ (20,000) $ 170,000 $ 150,000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead…
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory Cost and activity data have been supplied for the following products: Activity Rates $ 4.00 per direct labor-hour $7.00 per machine-hour Direct labor-hours Machine-hours Machine setups Production orders Shipments Direct materials cost per unit Direct labor cost per unit Number of units produced per year Unit product cost $80.00 per setup $ 100.00 per order $ 100.00 per shipment $7.00 per direct labor-hour J78 Total Expected Activity 378 1,400 3,900 7 7 8 B52 50 50 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 378 $ 2.50 $ 4.00 2,000 B52 $ 21.00 $8.00 100
Harris Company manufactures and sells a single product. 1. A partially completed schedule of the company's total and per unit costs over the relevant range of 53,000 to 93,000 units produced and sold annually is given below: Complete the schedule of the company's total and unit costs. (Round the varlable cost and fixed cost to 2 decimal places.) Total Costs Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost Fixed Cost Total Unit per Cost 2 Harris Contribution Format Sales Units Variable Expenses 53000 $153700 370000 $523700 ? ? ? Produced & Contribution Margin Fixed Expense Net Operating Income 73000 ? ? ? ? ? ? Company Assume that the company produces and sells 83,000 units during the year at a selling price of $8.97 per unit. Prepare a contribution format income statement for the year. ? ? ? Sold ? 93000 ? ? ? ? Income Statement ? ? ?
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Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders Shipments General factory $ 120.00 per shipment $ 10.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct labor-hours Machine-hours Machine setups Production orders Shipments Activity Rates $ 6.00 per direct labor-hour $ 10.00 per machine-hour Direct materials cost per unit Direct labor cost per unit Number of units produced per year $50.00 per setup $ 100.00 per order Unit product cost J78 Total Expected Activity 378 1,400 2,400 8 98 6 B52 30 30 1 1 1 Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) B52 J78 $ 4.50 $ 5.00 2,000 B52 $26.00 $6.00 100
Koontz Company manufactures two models of industrial components-a Basic model and an Advanced Model. The company considers all of its manufacturing overhead costs to be fixed and it uses plantwide manufacturing overhead cost allocation based on direct labor-hours. Koontz's controller prepared the segmented income statement that is shown below for the most recent year (he allocated selling and administrative expenses to products based on sales dollars): Basic Advanced Total Number of units produced and sold 20,000 10,000 30,000 $ 5,000,000 3,650,000 1,350,000 1,200,000 $3,000,000 $2,000,000 1,350,000 650,000 480,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 2,300,000 700,000 720,000 (20,000) Net operating income (loss) $4 $4 170,000 150,000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental…
Sheddon Industries produces two products. The products' identified costs are as follows: Direct materials. Direct labor Multiple Choice The company's overhead costs of $55,000 are allocated based on direct labor cost. Assume 5,000 units of product A and 6,000 units of product B are produced. What is the cost per unit for product B? Note: Do not round intermediate calculations. $12.56 $14.56 Product A $ 21,000 15,000 $14.19 Product B $ 16,000 25,000
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ELU Company makes two products in a single facility. These products have the following unit product costs: Product A Product B Direct materials $10.90 $15.80 Direct labour 12.50 12.60 Variable manufacturing overhead 2.40 1.20 Fixed manufacturing overhead 11.60 7.20 Unit product cost $37.40 $36.80 Additional data concerning these products are listed below. Product A Product B Mixing minutes per unit 2.00 1.00 Selling price per unit $55.80 $54.60 Variable selling cost per unit $2.10 $1.40 Monthly demand in units 2,000 1,000 The mixing machines are potentially a constraint in the production facility. A total of 4,000 minutes are available per month on these machines. Direct labour is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for both products? How many of each product should be produced, rounded to the nearest…