EB10. This cost data from Hickory Furniture is for the year 2017. Number of Chairs Produced Month January February March April May June July August September October November December 425 510 625 725 685 575 510 810 700 650 875 680 Factory Utility Expenses $1,659 1,964 2,406 2,791 2,637 2,214 1,964 3,119 2,695 2,503 3,369 2.618
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- Gorham, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. Gorham, Inc., produced 70,000 units of product in 2017. Gorham's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. - X Data Table More Info Account Classification Amount a. Direct materials prices in 2018 are expected to increase by 8% compared with 2017. b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 4% in 2018 compared with 2017. Direct materials All variable $ 367,500 c. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018. Direct manufacturing labor All variable 297,500 Power All variable 87,500 d. Depreciation costs are expected to increase by 9%, and rent, property taxes, and administration costs are…ABC Inc. manufactures a single product. Assume the following data for 2015: VC Per Unit: S&A $14; Production, $38. Total FC: Production, $140,000; S&A, $ 84,000. During the year, 7,000 units were produced and 6,800 units were sold. Under variable costing, the cost of one unit of product would be: O a. $38 O b. $70 O c. $52 O d. $58Required Information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,000 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit 1,200,000 $10 per unit $ 12 per unit $3 per unit $ 40,000 per year $ 2 per unit $ 65,200 per year $ 60 per unit
- Barkoff Enterprises, which uses the high-low method to analye cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Machine Hours 800 720 Month Utilities 8,700 8360 8,950 9,360 January February March S10 April May 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. 8) S5,100. O54,760. D) $3,764. E) None of the answers is correct.Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 530 sun visors in May and 350 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Suppose that each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $9 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June.Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ Required 1 $2,200,000 $8,800,000 Net income (loss) 35 per unit 55 per unit $ 775,000 $4,500,000 $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing? Required 2 Required 3 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Complete this question by entering your answers in the tabs below. 110,000 units 80,000 units 360 per unit
- A.Prepare Statement of Income and Expenses with a marginal contribution approach. Empresas La Torre presents the following information for the year ended December 31, 2020: Product Costs: Direct materials (Variables) $ 50.00 per unit Direct Labor (Variable) $ 20.00 per hour Variable Indirect Costs $ 10.00 per hour Total Fixed Indirect Costs $ 250,000 Period Expenses Seller Commissions $ 20.00 per unit Variable Administrative Expenses $ 30.00 per unit Total Fixed Administrative Expenses $ 150,000 The company sells solar batteries at $ 200.00 per unit. Making each battery takes 2 hours of direct labor. The company taxes its income at 40%. If the Company sells 10,000 units, prepare a statement of income and expenses using the marginal contribution approach.Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done PrintI. Cost Behavior and Estimation (HP 6) The owners of Mormont Co., Jorah and Lyanna, are expecting sales for August, 2019 to be 250,000 units. Information about Mormont's Sales and costs over the past three months, are as follows: Units Sold Sales Cost of Goods Sold Wage & Salary Expense Admin Expense May O 200,000 300,000 $3,450,000 $5,175,000 $1,575,000 $2,312,500 $950,000 $975,000 $1,300,000 $1,600,000 June July 500,000 $8,625,000 $3,787,500 $1,925,000 $2,500,000 Required: Based on the information provided, provide a projected income statement, using the contribution margin format. 5
- Jane Company started its operations at the beginning of 2016. The production and sales data of for the year 2016 wvere as follows: Variable costs per unit: • Direct materials: $20 • Direct labor: $10 • Variable manufacturing overhead: $4 Variable selling and administrative expenses: $8 Fixed costs per year: • Fixed manufacturing overhead: $180,000 • Fixed selling and administrative expenses: $600,000 During the year 2016, Jane Company manufactured 30,000 units out of which 22.000 units were sold. What is the cost of goods sold using absorption costing? (DO NOT USE COMMAS OR ANY SYMBOLS)Use the marginal income ratio to calculate the break-even value. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%2. The following data are given on the only one product of Glory Co. 2020 2021Sales volume 3,000. 2,600Unit Selling price. P 8.00. P 11.00Unit cost. 5.00 9.00 Prepare the gross profit statement and analyze the variation in gross profit