Full Ton CompanyFinancial Projection for Product USAFor the Year Ended December 31, 20X2Sales (100 units at $100 a unit)...$10,000Manufacturing cost of good soldDirect Labor.$1,500Direct Materials Used..1,400Variable Factory Overhead.Fixed Factory Overhead..Total Manufacturing cost of goods soldGross Profit...1,0005004,4005,600Selling Expenses:Variable.600Fixed1,000Administrative Expenses:Variable.500Fixed....1,000Total selling and administrative expensesOperating Income.._3,100$ 2,500Required:(1) How many units of Product USA would have to be sold to break even?(2) What would the operating income be if sales increase by 25%?(3) What would be the dollar sales at the breakeven point if fixed factory overheadincreases by $1,700?(AICPA adapted)

The Break-even point represents the situation where the company does not earn a profit or incur a…

Answered: $10,000 Sales (100 units at $100 a…

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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5. Suppose that Dara manufactures 4 products: A, B, C and D. output and cost data for period just ended are as follows: A B с D Output units 10 10 100 100 Number of production runs in the period hour rate) 2 2 5 Direct labor cost per hours: $5 Overhead costs Short-run variable costs Set-up costs Expediting and scheduling costs Materials handling costs 2. ABC 5 14 Material cost per unit 20 80 20 80 Direct labor hours per unit 1 3 1 3 Machine hours per unit $ 3,080 10,920 9,100 7,700 30,800 ▪ Required Prepare unit costs for each product using: 1. Conventional absorption costing, (Assume that, in the traditional absorption costing system, overheads are a direct labor 1 3 1 3
Q – 9: Automobile Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce . . . . . . . . . . . . . . . . . . $3 Direct labor: 1.8 hours at $10 per hour . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead: 1.8 hours at $5 per hour . . . . . . . 9 Total standard variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . $30 During June, 2,000 units were produced. The costs associated with June’s operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce . . . . . . . $10,800 Material used in production: 14,000 ounces . . . . . . . . . . . . . . . . . — Direct labor: 4,000 hours at $9.75 per hour . . . . . . . . . . . . . . . . . $39,000 Variable manufacturing overhead costs incurred . . . . . . . . . . . . . $20,800 Required: Compute the…
A company provided the following information about its one and only product: $45,000 $30,000 $42,000 $8,000 $28,000 $12,000 $20 10,000 Direct material used Direct labour Fixed factory overhead Fixed Selling & administrative expenses Variable factory overhead Variable Selling & administrative expenses Selling price per unit Units produced The unit cost of a unit under the absorption costing approach is? a. $10.30 O b. $16.50 O c. $14.50 O d. $5.00
A company’s standard product cost is $9 per unit. Actual production costs were $11 per unit. The firm made 20 units and sold 17 units. The firm’s cost of goods sold was Select one: a. $220. b. $187 c. $153 d. $180
Cornet Products, Inc., summarizes the following data for the first year of operations Sales (# of units sold: 100,000 units) ........................................ $7,000,000 Production costs (# of units produced: 102,250 units): Direct materials............................................................................. 1,100,000 Direct labor .................................................................................... 707,500 Manufacturing overhead: Variable............................................................................................. 1,260,000 Fixed.................................................................................................. 1,022,500 Operating expenses: Variable.............................................................................................. 560,000 Fixed................................................................................................... 640,000 Under variable costing, what is Cost…
Suzy-Q Corporation has established the following standard costper unit:Materials—5.5 lb @ $2.20 per lb . . . ............................... $12.10Labor—1.8 hr @ $6.25 per hr . . . .................................. 11.25Although 10,000 units were budgeted, only 8,800 units wereproduced.The purchasing department bought 55,000 pounds of materials at $123,750. Actual pounds of materials used were54,305. Direct labor cost was $127,400 for 18,200 hours worked.Required:1. Make journal entries to record the materials transactions,assuming that the materials price variance was recorded atthe time of purchase.2. Make journal entries to record the labor variances
2. The following is a standard cost card and other data referring to a manufactured product which sells at R31 per unit: Standard Cost Card Direct materials A, 30 kg @ R0,10 per kg Direct materials B, 12 @ R0,0125 Direct wages, 12 hours @ R5,00 an hour Factory overhead: Fixed 12 hour @ R0,75 an hour Variable 12 hours @ R0,75 an hour Actual output of finished product Sales of finished product There was no work in progress at the beginning or at the end of the period. Budgeted overhead (R27 000 fixed, R27 000 variable) R54 000 Budgeted hours of direct labour 36 000 Budgeted output of finished product Raw material bought and used, A 108 000 kg @ R0,11 kg Raw material bought and used, B 40 600 kg @ R0,02 each Direct wages 41 100 hours @ R5,125 an hour Actual overhead incurred: Per unit R3,00 0,15 60,00 Fixed Variable 9,00 9,00 R81,15 3 000 3 400 3 000 R30 920 R25 000 a. Calculate the price and usage variance of A and B. b. Calculate the rate and efficiency variance of labour. c. Calculate…
6 Dake Corporation's relevant range of activity is 2.000 units to 6.000 units. When it produces and sells 4,000 unts, its average costs per un are as follows Average Cost per Unit $ 6.55 $ 3.50 $ 1.40 $ 2.60 5.0.70 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense $ 0.40 Fixed administrative expense Sales commissions $ 1.50 Variable administrative expense $ 0.45 For financial reporting purposes, the total amount of product costs incurred to make 4.000 units is closest to Multiple Choice $56.200
Company XYZ produced 1,000 units of product A. The total manufacturing costs were $30,000. The Manufacturing overhead cost was twice the direct labor cost while the direct materials cost was three times the direct labor cost. What was the manufacturing overhead cost per unit? a. None of the given answers b. 5 С. 15 d. 6 e. 10
Additional Information: a. Sales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. b. Direct material cost is a variables cost and other production overheads are fixed cost. Direct labour consists of machine operatives' wages and the total wages behave as a step C. cost: Output Up to 7,500 units Over 7,501 and up to 11,000 units Over 11,001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 1.200 fils per unit. Total Direct Labour cost BD 4,850 BD 8,563 BD 10,484 d. Required: the budgeted machine running costs under the output of 11300 unit are:

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$10,000 Sales (100 units at $100 a unit). Manufacturing cost of good sold Direct Labor. . Direct Materials Used... Variable Factory Overhead.. Fixed Factory Overhead... $1,500 ... 1,400 1,000 500 14 4,400