DISCUSSION QUESTION 2 Microlamp Inc. produces desk lamps at its factory. The following relates to the production of the desk lamps for the period ending Dec Budgeted Actual Production (units) 75,000 80,000 Sales (units) 72.500 77,500 Fixed production cost $750,000 $781,250 Fixed selling overhead $562,500 $562,500 The fixed production overhead was absorbed at a pre-determined rate per unit produced. Each desk lamp was sold for $450, At the bes January 2021, there was opening stock of 4,375 units valued at $262500 this includes fixed production overhead of $43.750, Required: (a) Prepare a marginal costing income statement for the company at December 31, 2021

DISCUSSION QUESTION 2 Microlamp Inc. produces desk lamps at its factory. The following relates to the production of the desk lamps for the period ending Dec Budgeted Actual Production (units) 75,000 80,000 Sales (units) 72.500 77,500 Fixed production cost $750,000 $781,250 Fixed selling overhead $562,500 $562,500 The fixed production overhead was absorbed at a pre-determined rate per unit produced. Each desk lamp was sold for $450, At the bes January 2021, there was opening stock of 4,375 units valued at $262500 this includes fixed production overhead of $43.750, Required: (a) Prepare a marginal costing income statement for the company at December 31, 2021

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

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 62P: (Appendix 4A) Overhead Application, Journal Entries, Job Cost At the beginning of the year, Smith...

See similar textbooks

Similar questions

What is the answer to the question I uploaded
subject : Accounting
Question Content Area Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Machine Hours Quantity Produced 4-inch 5,000 15,000 rolls 6-inch 12,000 12,500 rolls 9-inch 7,000 11,200 rolls After installing JIT, three manufacturing cells were created, and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell. Cell, 4-inch $125,000 Cell, 6-inch 175,000 Cell, 9-inch 165,000 The maintenance cost per roll of 9-inch insulation before JIT is installed would be a. $14.00. b. $11.25. c. $7.75. d. $30.00.
Requifé Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter G-09 19,400 Machine depreciation Setup labor Materials handling Total $7 4 144 6-35 3,880 $19 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow $ 104,760 52,380 41,904 $ 199,044 7 72 Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis) b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
Subject: accounting
Required information Skip to question [The following information applies to the questions displayed below.] Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.50 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Required: For financial accounting purposes, what is the total product cost incurred to make 20,000 units? For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? For financial accounting purposes, what is the total product cost incurred to make 22,000 units? For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? Note: For all requirements, do…
Question 6 Bongani Limited manufactures a product that sells for R120. He manufactured and sold 12 500 units during the previous month. The following additional information, for this activity level, is available: Total direct material cost R281 250 Direct labour cost per hour R12 Direct labour hours needed per product 1 ½ Total variable manufacturing overheads R122 500 Sales commission (of the selling price) 2 ½ % Total fixed manufacturing overheads R360 000 Other fixed costs in total R420 000 Do the following calculations, according to the instructions given: Required: (a) Calculate Bongani’s net profit for the month. Compile a marginal income statement to present your answer.
Problem 11: Materials, Labor and Factory Overhead Variances Julie Corporation uses a standard cost system and has the following standard variable costs.
d. General costs Crinks Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was a. $4,280 overapplied b. $9,280 overapplied c. $9,280 underapplied d. $4,280 underapplied Majan company has lasudgeted sales in units for the next five months as follows:
2021.12.0203:13 Cost Accounting CHAPTER 238 Cost Accounting Chapter 8 Accounting for Factory Overhead Problem 4 The Ellery Corporation uses the job order coșt system of accounting. Shown below is a list of the jobs completed during the month of March showing the charges for materials requisitioned and for direct labor cost. Problem 6 The ABC Company has two service departments and two producing departments Job 123 Material Cost P 300 1,080 Service Departments' to costs: Department 1 - Repair Department 2 - Cafeteria P 14,000 11,000 Direct labor P 600 124 940 1,400 5,120 Próducing Departments' Factory OH Costs Department A - Machinery Department B - Assembly 52,500 48,000 125 720 126 4,200 Required: Assuming that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 180%, compute: 1. The amount of overhead to be added to the cost of each job completed 2. The total cost of each job completed during the month. Additional information Square Feet…
Please do not give solution in image format thanku
Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced G-09 19,200 G-35 3,840 Direct materials cost per unit $ 7 Machine-hours per unit Production runs per quarter 4 144 $ 19 7 72 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: Machine depreciation Setup labor $ 103,680 Materials handling 51,840 41,472 Total $ 196,992 Exercise 9-37 (Algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, G-09 and G-35, using the current costing system at Heidelberg (using machine-hours as the allocation basis). b. Compute the unit costs for the two products, G-09 and G-35, using the proposed ABC system at Heidelberg. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Using current costing system b. Using proposed ABC system Unit Cost G-09 G-35