Please do not give solution in image format thanku Galactic Inc. manufactures flying dronetoys. Sales units for January, February,March, April and May were 580, 560,632, 592, and 660 respectively. Eachunit requires 3 direct labor hours andGalactic's hourly labor rate is $29 perhour. The company's variableoverhead is $18 per unit produced andits fixed overhead is $6,900 per month.Use the information presented tocomplete the requirements. The dronetoy includes 4 LED lights, which cost$15 each.Required:1. Determine Galactic's budgetedmanufacturing cost per drone. (Note:assume that fixed overhead per unit is$24.75.)2. Determine Galactic's budgeted costof goods sold for January andFebruary.

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Description: Please do not give solution in image format thanku Galactic Inc. manufactures flying dronetoys. Sales units for January, February,March, April and May were 580, 560,632, 592, and 660 respectively. Eachunit requires 3 direct labor hours andGalactic's

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Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 580, 560, 632, 592, and 660 respectively. Each unit requires 2 direct labor hours and

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 680, 660, 732, 692, and 760 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $34 per hour. The company’s variable overhead is $23 per unit produced and its fixed overhead is $7,400 per month. Use the information presented to complete the requirements. The drone toy includes 3 LED lights, which cost $15 each. Required: 1. Determine Galactic's budgeted manufacturing cost per drone. (Note: assume that fixed overhead per unit is $27.25.) 2. Determine Galactic's budgeted cost of goods sold for January and February.
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours 27 minutes Standard Rate per Hour $6.00 During August, 9,540 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $56,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,600 Jogging Mates? 3. What is the labor spending variance? Standard Cost $2.70 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $47,700 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Standard Rate per Hour $ 6.20 Standard Hours 24 minutes Cost $ 2.48 During August, 8,620 hours of direct labor time were needed to make 19,600 units of the Jogging Mate. The direct labor cost totaled $51,720 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,600 Jogging Mates? 2 What is the standard labor cost allowed (SH x SR) to make 19,.600 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is S4.10 per direct labor-hour. During August, the company incurred $41,376 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…