Gibson Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 4,900 chairs in January. Materials and labor costs for January were $16,900 and $24,800, respectively. Gibson produced 1,700 chairs in February. Material and labor costs for February were $8,400 and $13,800, respectively. The company paid the $826,200 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. January Price per unit February

Gibson Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 4,900 chairs in January. Materials and labor costs for January were $16,900 and $24,800, respectively. Gibson produced 1,700 chairs in February. Material and labor costs for February were $8,400 and $13,800, respectively. The company paid the $826,200 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. January Price per unit February

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 6P: RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During...

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RDI Products Co. manufactures a variety of products made of plastic and aluminum components. During the winter months, substantially all of the production capacity is devoted to the production of lawn sprinklers for the following spring and summer seasons. Other products are manufactured during the remainder of the year. The company has developed standard costs for its several products. Standard costs for each year are set in the preceding October. The standard cost of a sprinkler for the current year is $3.70, computed as follows: During February, RDI Products manufactured 8,500 good sprinklers. The company incurred the following costs, which it charged to production: Materials price variations are not determined by usage but are charged to a materials price variation account at the time of purchase. All materials are carried in inventory at standard prices. Materials purchases for February were as follows: *Due to plastic shortages, the company was forced to purchase lower-grade plastic than called for in the standards. This increased the number of sprinklers rejected on inspection. Required: Calculate price and usage variances for each type of material and for labor, using the formulas on pages 421–422 and 424.
Munoz Manufacturing Company expects to make 30,100 chairs during the Year 1 accounting period. The company made 4,400 chairs in January. Materials and labor costs for January were $16,700 and $25,100, respectively. Munoz produced 1,600 chairs in February. Material and labor costs for February were $8,000 and $12,300, respectively. The company paid the $571,900 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Munoz desires to sell its chairs for cost plus 20 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. Price per unit January 14.14 $ February 38.81
Gibson Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 3,300 chairs in January. Materials and labor costs for January were $17,800 and $24,500, respectively. Gibson produced 1,400 chairs in February. Material and labor costs for February were $9,400 and $12,900, respectively. The company paid the $770,000 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 25 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Solomon Manufacturing Co. expects to make 30,600 chairs during the year 1 accounting period. The company made 4,800 chairs in January. Materials and labor costs for January were $17,900 and $25,900, respectively. Solomon produced 1,900 chairs in February. Material and labor costs for February were $8,700 and $12,900, respectively. The company paid the $489,600 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year.Assuming that Solomon desires to sell its chairs for cost plus 10 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Baird Manufacturing Co. expects to make 30,500 chairs during the year 1 accounting period. The company made 4,600 chairs in January. Materials and labor costs for January were $16,600 and $24,200, respectively. Baird produced 1,800 chairs in February. Material and labor costs for February were $9,900 and $13,700, respectively. The company paid the $518,500 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Baird desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) January February Price per unit
Arrow Manufacturing Co. expects to make 50,000 chairs during the year 1 accounting period. The company made 3,000 chairs in January. Materials and labor costs for January were $36,000 and $48,000, respectively. Arrow produced 4,000 chairs in February. Material and labor costs for February were $48,000 and $60,000, respectively. The company paid the $480,000 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. RequiredAssuming that Arrow desires to sell its chairs for cost plus 40 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Arrow Manufacturing Co. expects to make 50,000 chairs during the year 1 accounting period. The company made 3,000 chairs in January. Materials and labor costs for January were $36,000 and $48,000, respectively. Arrow produced 4,000 chairs in February. Material and labor costs for February were $48,000 and $60,000, respectively. The company paid the $480,000 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. RequiredAssuming that Arrow desires to sell its chairs for cost plus 40 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.)
Production workers for Zachary Manufacturing Company provided 4,300 hours of labor in January and 3,400 hours in February. The company, whose operation is labor intensive, expects to use 48,300 hours of labor during the year. Zachary paid a $111,090 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.)
Production workers for Thornton Manufacturing Company provided 5,200 hours of labor in January and 3,100 hours in February. The company, whose operation is labor intensive, expects to use 48,500 hours of labor during the year. Thornton paid a $101,850 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? (Do not round intermediate calculations.) Month Allocated Cost January February
Production workers for Adams Manufacturing Company provided 5,000 hours of labor in January and 2,100 hours in February. The company, whose operation is labor intensive, expects to use 48,000 hours of labor during the year. Adams paid a $100,800 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? Note: Do not round intermediate calculations. Month January February Allocated Cost
Rooney Corporation estimated its overhead costs would be $23,200 per month except for January when it pays the $165,960 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $189,160 ($165,960 + $23,200). The company expected to use 7,600 direct labor hours per month except during July, August, and September when the company expected 9,400 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company’s actual direct labor hours were the same as the estimated hours. The company made 3,800 units of product in each month except July, August, and September, in which it produced 4,700 units each month. Direct labor costs were $23.10 per unit, and direct materials costs were $10.20 per unit. Required Calculate a predetermined overhead rate based on direct labor hours. Determine the total allocated overhead cost for January, March, and August. Determine the…
Adams Corporation estimated its overhead costs would be $23,000 per month except for January when it pays the $179,400 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $202,400 ($179,400 + $23,000). The company expected to use 7,700 direct labor hours per month except during July, August, and September when the company expected 9,900 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,850 units of product in each month except July, August, and September, in which it produced 4,950 units each month. Direct labor costs were $23.80 per unit, and direct materials costs were $11.50 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August. c. Determine…