For XYZ Company, the following information related to costs is available for the last quarter: direct materials $2,000, direct labor $3,000, variable MOH $400, fixed MOH $1,600 and selling and administrative expenses $3,000. The product cost under absorption costing is: O a. none of the given answers O b. $6,600 O c. $5,400 O d. $10,000 O e. $7,000
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- Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 92.00 $ 66.00 $ 82.00 Variable expenses: Direct materials 27.60 18.00 12.00 Other variable expenses 27.60 31.50 45.40 Total variable expenses 55.20 49.50 57.40 Contribution margin $ 36.80 $ 16.50 $ 24.60 Contribution margin ratio 40% 25% 30% The company estimates that it can sell 950 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,100 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,100 pounds of materials?Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit $ 6.30 $ 3.30 $ 1.25 $ 1.30 $ 0.60 Cost per Period $ 15,000 $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:Schwiesow Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice O $14,750 Variable administrative expense Fixed selling and administrative expense If 4,500 units are produced, the total amount of manufacturing overhead cost is closest to:
- Required information. Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $8.50 $5.60 $ 3.10 1. Total amount of product cost 2. Total amount of period cost 3. Total amount of product cost 4 Total amount of period cost $6.60 $5.10 $.4.10 $2.00 $2.10 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 30,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,750 units? 3. For…Schwiesow Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice O $38,000 O $39,000 Variable administrative expense Fixed selling and administrative expense $ 6,000 If 9,500 units are produced, the total amount of manufacturing overhead cost is closest to: O $37,000 Cost per Unit $ 7.60 $3.40 $ 2.00 $52.300 $ 1.00 $ 0.30 Cost per Period $ 20,000Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor $12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)
- A company provided the following information about its one and only product: Direct materal used: $45,000 Direct labour: $30,000 Fixed factory overhead: $42,000 Fixed Selling & administrative expenses: $8,000 Variable factory overhead: $28,000 Variable Selling & administrative expenses: $12,000 Selling price de unit: $12 Units produced: 10,000 The unit cost of a unit under the marginal costing approach is a. $5.00 b. $514.50 c. $516.50 d. $510,30Cheng Company reports the following information. Direct labor rate. Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) Determine its (a) time charge per hour of direct labor and (b) materials markup percentage. (a) Time charge per hour of direct labor (b) Materials markup $ 200 per DLH per DLH $30 22% of direct materials costs 30 % %not graded.... Variable and Absorption Costing-Service CompanyLawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $160. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $10.00 Fixed cost (annual) $100,000 Marketing, general and administrative Variable cost (per service contract completed) $11.00 Administrative expenses (fixed- annual cost) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer…
- Under absorption costing, a company had the following per unit costs when 10,000 units were produced. Direct labor $ 3.80 Direct materials 4.80 Variable overhead 5.80 Total variable cost 14.40 8.60 Fixed overhead ($86,000/10,000 units) Total product cost per unit $23.00 The company sells its product for $75.20 per unit. Due to new regulations, the company must now incur $3.80 per unit of hazardous waste disposal costs and $4,630 per year of fixed hazardous waste disposal costs. Compute the company's break-even point (in units), including hazardous waste disposal costs. Break-even point 1,486 unitsTime left 1:25:35 For XYZ Company, the following information related to costs is available for the last quarter: direct materials $2,000, direct labor $3,000, variable MOH $400, fixed MOH $1,600 and selling and administrative expenses $3,000. The product cost under absorption costing is: O a. $10,000 O b. $5,400 O c. none of the given answers O d. $6,600 e. $7,000 During June at XYZ company, OMR 85,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirectKesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice ( $15.15 Variable administrative expense Fixed selling and administrative expense The incremental manufacturing cost that the company will incur if it increases production from 10,000 to 10,001 units is closest to: $16.45 Cost per Unit $6.70 $ 3.30 $ 1.65 $13.95 $ 1.20 $ 0.80 Cost per Period $ 23,000 $ 5,000 Hel