Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on directlabor-hours and its standard cost card per unit is as follows:Direct material: 5 pounds at $10.00 per poundDirect labor: 4 hours at $16 per hourVariable overhead: 4 hours at $7 per hourTotal standard variable cost per unit$ 50.0064.0028.00$ 142.00The company also established the following cost formulas for its selling expenses:AdvertisingSales salaries and commissionsShipping expensesFixed Costper Month$220,000$ 140,000VariableCost perUnit Sold$ 14.00$ 5.00The planning budget for March was based on producing and selling 20,000 units. However, during March the companyactually produced and sold 24,600 units and incurred the following costs:a. Purchased 164,000 pounds of raw materials at a cost of $7.50 per pound. All of this material was used in production.b. Direct-laborers worked 57,000 hours at a rate of $17.00 per hour.c. Total variable manufacturing overhead for the month was $653,220.d. Total advertising, sales salaries and commissions, and shipping expenses were $235,000, $465,000, and $135,000,respectively.Foundational 9-9 (Algo)9. What variable manufacturing overhead cost would be included in the company's flexible budget for March?Variable manufacturing overhead cost

Variable costs are costs that vary with the change in the level of output.Factory overhead is the…

Answered: erial: 5 pounds at $10.00 per pound or:…

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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Sales (10,000 units at $300 each) Variable costs (10,000 units at $240 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units 2. Break-even sales dollars units $ 3,000,000 2,400,000 600,000 420,000 $ 180,000
Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) $276,000 60,000 336,000 84,000 Total sales (b) $420,000 Sales price per unit (b +12,000) $ 35 Required a. Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson accept the special order? b. Prepare a contribution margin income statement for the special order. Complete this question by entering your answers in the tabs below. Required A Required B Gibson has excess capacity and receives a special order for 7,000 clocks for $28 each. Calculate the contribution margin per unit. Based on this, should Gibson accept the special order? Contribution margin per unit Should Gibson accept the special order? 13
Cartier Corporation currently sells its products for $50 per unit. The company’s variable costs are $20 per unit. Fixed expenses amount to a total of $5,000 per month. What is the company’s contribution margin ratio? multiple choice 1 40% 60% 100% 20%
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If fixed costs are $400,000 and the unit contribution margin is $20, what is the break-even point in sales units? Oa. 25,000 units Ob. 10,000 units Oc. 400,000 units Od. 20,000 units
question A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distribution costs R230 400 Sales commission 5% of the selling price Sales 90 000 units Required he marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising Calculate the revised breakeven point based on the marketing managers suggestion
Campbell company incurs annual fixed costs of $65,400 variable costs for Campbell's product are $32.00 per unit, and the sales price is $50.00 per unit. Campbell desires to earn an annual profit of $48,000. Required Use the per-unit contribution margin approach to determine the sale volume in units and dollars required to earn the desired profit. Sales in dollars Sales Volume in units
Dakota Company provides the following information about its single product Target operating income $40,000 Selling price per unit $3.50 Variable cost per unit $1.05 Total fixed costs $90,000 What is the break-even point in units?
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Contribution Margin Harry Company sells 30,000 units at $12 per unit. Variable costs are $9.72 per unit, and fixed costs are $39,700. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations. a. Contribution margin ratio (Enter as a whole number.) % b. Unit contribution margin (Round to the nearest cent.) $ per unit c. Income from operations
sales per unit $15 $100 variable expenses per unit $9 $20 units sold annualy 20,000 5,000 Hawaiian Tahitian Joy Fantasy 15 Selling price per unit Variable expense per unit Number of units sold annually $ 100 20 5,000 20,000 Fixed expenses total $475,800 per year. Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole
Revenue (8,100 units) $16,200 Variable costs 4,050 Contribution margin $12,150 Fixed costs 4,050 Net income $ 8,100 If actual production totals 8,500 units, the flexible budget would show total costs of: Multiple Choice $8,300. None of these answers are correct. $8,400. $16,600.

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