Gary is struggling with whether to use the practical capacity level or the normal capacity level for the company's budgeted quar units. His company has always used the practical capacity level, but he believes the normal level would more accurately reflect realistic sales volume and production level of the company's travel bags. Gary notes the following budgeted information: variab manufacturing costs, $17 per unit; fixed-MOH costs, $60,600; practical capacity, 10,100 units; and normal capacity, 8,080 units If actual production and sales both end at 8,585 units, what would total product cost be per unit for each capacity level? (Round to 2 decimal places, e.g. 15.25.) Total production cost per unit $ Practical Practical /unit $ Normal If selling prices are 140% of product cost, what selling prices would be set for each capacity level? (Round answers to 2 decimal pl e.g. 15.25.) Normal /unit

Gary is struggling with whether to use the practical capacity level or the normal capacity level for the company's budgeted quar units. His company has always used the practical capacity level, but he believes the normal level would more accurately reflect realistic sales volume and production level of the company's travel bags. Gary notes the following budgeted information: variab manufacturing costs, $17 per unit; fixed-MOH costs, $60,600; practical capacity, 10,100 units; and normal capacity, 8,080 units If actual production and sales both end at 8,585 units, what would total product cost be per unit for each capacity level? (Round to 2 decimal places, e.g. 15.25.) Total production cost per unit $ Practical Practical /unit $ Normal If selling prices are 140% of product cost, what selling prices would be set for each capacity level? (Round answers to 2 decimal pl e.g. 15.25.) Normal /unit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

2.
vega Inc dealing with soft toys and it has provided the following details where it needs to calculate Efficiency and Capacity ratio of the unit: Budgeted production = 80 units Actual production= 60 units Standard time per unit=8 hours Actual hours worked= 500 hours.
Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,100. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,200 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Basic establish for the QuikCar for the upcoming model year?
Dawn is preparing a budget for her operation. She has forecasted revenue of $1,200,000 for the budget period and now wants to complete the variable expenses portion for her forecast. Dawn reviewed her historical cost percentage records. She then established her target variable cost percentages for several variable cost categories. Use Dawn's target cost percentages to complete her variable expense forecast.
Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $55 each with expected sales of 3,900 tops annually. By adding the fleece tops, management feels the firm will sell an additional 245 pairs of jeans at $65 a pair and 380 fewer T-shirts at $26 each. The variable cost per unit is $33 on the jeans, $17 on the T-shirts, and $29 on the fleece tops. With the new item, the depreciation expense is $35,000 a year and the fixed costs are $70,000 annually. The tax rate is 21 percent. What is the project's operating cash flow? $28,328 $26,084 $39,596 $30,188 $35,648 Please answer fast i give you upvote.
Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 81,000 units next year, the unit product cost of a particular product is $45.30. The company's selling and administrative expenses for this product are budgeted to be $1,898,000 in total for the year. The company has invested $262,000 in this product and expects a return on investment of 14%. The markup on absorption cost for this product would be: a. 14% b. 52.7% c. 51.7% d. 65.7%
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 86 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Cruise Cost per Passenger Vessel operating costs $ 6,600 $ 479.00 $ 3.00 Advertising $ 2,700 Administrative costs $ 5,900 $ 37.00 $ 1.50 Insurance $ 3,500 For example, vessel operating costs should be $6,600 per month plus $479.00 per cruise plus $3.00 per passenger. The company’s sales should average $29.00 per passenger. In July, the company provided 57 cruises for a total of 3,050 passengers. Required: Prepare the company’s flexible budget for…
CVP and BEP Veronique Inque. manufactures Unique, a patented rainbow coat of many colours. Veronique has a patent pending for the rain-repellant exterior shell. They anticipate its approval in the near future. They are in the process of budgeting for next year. They anticipate variable costs to increase to $330 per raincoat and fixed costs to remain rather steady at $1,100,000. Management believes that product pricing to customers will increase. They anticipate a sales price point of $440 per coat for next year. Management has not estimated the quantity of sales for next year. 1. Determine the projected CONTRIBUTION MARGIN RATIO. 2. Determine the projected BREAK-EVEN POINT - QUANTITY. 3. Determine the projected BREAK-EVEN POINT - SALES.
Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,400. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,900 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Basic establish for the QuikCar for the upcoming model year?$fill in the blank 1 b. Since the estimated manufacturing cost the target cost, Basic its total costs to maintain competitive pricing within its profit objectives.
Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 25,000 copies of the book. Number of units Variable manufacturing costs Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 24,000 and 26,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 26,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Fixed costs $36.50 8.60 4.40 Master Budget 25,000 7.10 $ 131,000 50,000 Flexible Budgets 24,000 < Prev 4 of 4 26,000 Volume Variances…
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management Identified two cost drivers for budgeting purposes-the number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Fixed Cost Cost per per Cost per Month Cruise Passenger $ $ 3.30 6,000 470.00 $ $ 2,400 Administrative $ $ $ 1.50 costs 5,700 35.00 Insurance $ 3,700 For example, vessel operating costs should be $6,000 per month plus $470.00 per cruise plus $3.30 per passenger. The company's sales should average $28.00 per passenger. In July, the company provided 53 cruises for a total of 3,200 passengers. Required: Prepare the company's flexible budget for July. Alyeski Tours Flexible Budget For the Month Ended July 31…
According to its original plan, Munoz Consulting Services Company plans to charge its customers for service at $125 per hour. The company president expects consulting services provided to customers to reach 55,000 hours at that rate. The marketing manager, however, argues that actual results may range from 49,000 hours to 61,000 hours because of market uncertainty. Munoz's standard variable cost is $46 per hour, and its standard fixed cost is $1,410,000. Required Develop flexible budgets based on the assumptions of service levels at 49,000 hours, 55,000 hours, and 61,000 hours.