Cycling Corporation identified the following budgeted data for this year. The company produces two types of bicycles, Recreational and Racing.ActivityBudgeted Overhead CostBudgeted Activity$ 2,500,000Handling materialsQuality inspection400,000 parts360,0006,000 inspectionsPurchasing100,0004,000 ordersTotal$ 2,960,000The company allocates overhead cost based on 10,000 budgeted direct labor hours. The Recreational bicycle uses 5 direct labor hours per unit, and theRacing bicycle uses 10 direct labor hours per unit. Overhead cost per unit for the Racing bicycle is: Compute the number of equivalent units with respect to conversion using the weighted-average method.Direct MaterialsConversion PercentUnitsPercent CompleteCompleteBeginning work in process inventoryUnits started and completed35,000100%55%110,000Units completed and transferred outEnding work in process inventory145,00040,000100%30%

the overhead cost of a company is allocated using 3 methods 1. plantwide overhead allocation method…

Answered: Dverhead cost per unit for the Racing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Which of the following is a resource constraint? 1. machine hours available 2. sales commissions 3. cost per unit 4. budgeted overhead
The cost of printed circuit boards used in the radios * O Product Cost O Period Cost
Using the conventional method I got the cost per unit for Product A: 54 GBP and Product B: 110 GBP and using the ABC principles I got the cost for Product A: 80 GBP and for Product B: 63 GBP. What are the causes for any differences in the cost based on obtained results?
The direct costs of materials that change with the number of units produced is an example of a fixed production cost. True or false
The equivalent units for the FIFO unit cost represent: a. work done during the current period. b. work done during the current period and the previous period. c. work done on units completed during the current period. d. work done during the previous period. e. the same thing as the equivalent units for the weighted average unit cost.
Dengo Company makes a trail mix in two departments: Roasting and Blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. October data for the Roasting department follow. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Beginning work in process inventory Costs added this period Direct materials. Conversion Total costs to account for Units 4,400 20, 600 25,000 3,800 $314, 760 1,374,948 Direct Materials Conversion Percent Percent Complete Complete 100% 30% 100% $ 124,790 1,689, 708 $ 1,814, 498 70%
Activity-Based Costing CardioTrainer Equipment Company manufactures stationary bicycles and treadmills. The products are produced in the Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $22 per machine hour (mh) Assembly $12 per direct labor hour (dlh) Setup $40 per setup Inspecting $18 per inspection Production scheduling $8 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Stationary Bicycle Treadmill Machine hours 1,680 1,070 Direct labor hours 243 131 Setups 45 20 Inspections 158 94 Production orders 60 32 Purchase orders 240 98 Units produced 500 350
Please define THREE of the following terms and provide an example of each one you have selected: • Conversion Costs• Direct Costs• Direct Labor Cost• Direct Materials Cost• Factory Overhead Cost• Indirect Costs• Period Costs• Prime Costs• Product Costs
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate compl 2. Compute the contribution margin per unit. [assume direct labor is a fixed cost] 3. Compute the contribution margin per welding hour. [assume direct labor is a fixed cost] 4. Assuming direct labor is a fixed cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b. What is the increase (decrease) in net operating income that would result from this plan over current operations? 5. Compute the contribution margin per unit. [assume direct labor is a variable cost] 6. Compute the contribution margin per welding hour. [assume direct labor is a variable cost] 7. Assuming direct labor is a variable cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b.…
how do I explain this? Metric Score Percent of Total Possible Contribution Margin 4.7 /5 Plant Utilization 5.0 /5 Days of Working Capital 5.0 /5 Stock-out Costs 5.0 /5 Inventory Carrying Costs 3.6 /5 Overall Score 23.3 /25
How do you get the variable cost per unit produced and sold?

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Dverhead cost per unit for the Racing bicycle is: