QS: General Accounting 3.2 Granite Peak Construction mixes concrete using a 3:2:1 ratio ofcement, sand, and gravel. If one batch requires 300 kg total andcement costs $2/kg, sand $1.20/kg, and gravel $0.80/kg, determinethe cost per batch.

Explanation of Ratio: A ratio is a mathematical comparison between two or more related quantities…

Answered: Granite Peak Construction mixes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard quantity or hours of direct materials: 7.40 pounds, standard price or rate of direct materials is 2.60 per pound. Standard cost of direct materials is 19.24. Standard quality or hours of direct labor is 0.45. Standard price or rate of direct labor is 8.00 per pound. Standard cost is 3.60. During the most recent month, the following activity was recorded: 12,100 pounds of material were purchased at a cost of 2.50 per pound. All of the material purchased was used to produce 1,500 units of the product. 575 hours of direct labor time were recorded at a total labor cost of 5,750. Compute the materials price variance and the materials quantity variance for the month. Complete the labor rate variance and efficiency variance for the month.
The cost of materials for product A are as follows. Material W: $2,250 Material X: $3,000 Material Y: $3,600 Material Z: $150 If the material proportions were displayed on a pie chart, how many degrees would material Y represent? A 90 degrees B 120 degrees C 144 degrees D 204 degrees
A manufacturer produces a product known as Symphony X. The company uses a standard costing system and provides you with the following information: Direct materials required to produce one unit of Symphony X: 9.5 KG Standard cost of direct materials: £50 /KG Normal wastage while producing two units of Symphony X: 2.5 KG per Unit Based on the above information, what is the standard direct materials cost per unit of Symphony X? Choose one from the following: A. £475.00 B. £350.00 C. £537.50 D. £575.50
Nonuniform Inputs, Weighted Average Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning of the fabrication process): Production: Units in process, April 1, 50% complete with respect to conversion 10,000 Units completed 65,200 Units in process, April 30, 60% complete 12,000 Costs: Work in process, April 1: Materials $40,980 Conversion costs 14,100 Total $55,080 Current costs: Materials $125,000 Conversion costs 210,000 Total $335,000 Carter uses the weighted average method. Required: 1. Prepare an equivalent units schedule.
Haver Company currently pays an outside supplier $19 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $7 per unit, direct labor of $10 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $7 per unit, direct labor of $4 per unit, and incremental overhead of $7 per unit. Compute the cost per unit for each alternative method of making the part
Haver Company currently pays an outside supplier $15 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $5 per unit, direct labor of $8 per unit, and ncremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $5 per unit, direct labor of $2 per unit, and incremental overhead of $7 per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost per unit for each alternative method of making the part. Make with Method Make with 1 Method 2 Cost per unit Cost per unit Required t Buy Required 2 >
Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data are as follows: Cost per unit Direct materials Perspex (0.5 meters @ $15 per meter) $ 7.50 Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00 Direct manufacturing labour (0.5 hr @ $30.00 per hr) Manufacturing overhead Total Cost 15.00 Required Should HF accept the offer. Show all computations. 30.00 $57.50 Additional information 45% of the Manufacturing overhead changes with the number of units produced. Additionally, if production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The budgeted production used to compute overheads is 10,000 units per quarter. HF has been approached by another company who is willing to supply the face shields at $50. Per unit. The space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin per quarter.
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Haver Company currently pays an outside supplier $35 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $15 per unit, direct labor of $18 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $15 per unit, direct labor of $12 per unit, and incremental overhead of $7 per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should Haver make or buy the part? If Haver makes the part, which production method should it use? Should Haver make or buy the part? If Haver makes the part, which production method should it use?
Haggstrom, Inc., manufactures steel fittings. Each fitting requires both steel and an alloy that allows the fitting to be used under extreme conditions. The following data apply to the production of the fittings. Direct materials per unit 3 pounds of steel at $0.55 per pound 0.5 pounds of alloy at $1.90 per pound Direct labor per unit 0.02 hours at $30 per hour Overhead per unit Indirect materials Indirect labor Utilities Plant and equipment depreciation Miscellaneous $0.60 0.75 0.55 0.90 0.70 Total overhead per unit $3.50 The plant and equipment depreciation and miscellaneous costs are fixed and are based on production of 250,000 units annually. All other costs are variable. Plant capacity is 300,000 units annually. All other overhead costs are variable. The following are forecast for year 2. Contract negotiations with the union are expected to lead to an increase in hourly direct labor costs of 4 percent, mostly in the form of additional benefits. Commodity prices, including steel,…
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?

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Granite Peak Construction mixes concrete using a 3:2:1 ratio of cement, sand, and gravel. If one batch requires 300 kg total and cement costs $2/kg, sand $1.20/kg, and gravel $0.80/kg, determine the cost per batch.