In addition to the MOH costs, the following DM and DL costs are provided for the three product types.Direct materials cost/unitDirect labor cost/unitSmallGross margin percentage$3.00$1.50Medium$3.40$1.90If Kingbird sells the small mouse for $16, the medium mouse for $17, and the large mouse for $26, what gross margin percentageis it generating for each product? (Round answers to 2 decimal places, e.g. 15.25%.)Large$3.60$1.80Small%Medium%Largede% The managers of Kingbird were determined to reduce product costs for the three versions of wireless mouses they carried-small,medium, and large-to be more competitive. All three product types went through production and packaging and generated the needfor factory maintenance. The activity rates for these three key activities are as follows.ProductionPackagingMaintenanceMOH rates$13 per DL hour$4 per packaging hour$2 per machine hourThe following resources were consumed for the production of each type of mouse.Direct labour hours usedPackaging hours usedMachine hours usedUnits produced(b)Small Medium Large4,4003,800Total applied MOH2,5004,60032,000Your answer is correct.6,5003,4005,2004,60039,000 29,000Allocate MOH costs to the three products using the activity rates given.4,800Small Mouse68600tAMedium Mouse108500Large Mouse85600

Activity baed costing is one of the costing method which is used for allocation of all indirect…

Answered: In addition to the MOH costs, the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $9,504. Determine the break-even point in sales units. Round answer to the nearest whole number. units Determine the break-even point in sales units if the selling price was increased to $65 per unit. Round answer to the nearest whole number. units
Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? Oa. $23 per pound Ob. $29 per pound Oc. $56 per pound Od. $31 per pound
Seascape Company has two products: Product A has a contribution margin per unit of$20and Product B has a contribution margin of $22 per unit. Required: Calculate the weighted-average unit contribution margin if Seascape has a35%/65% (Product A/Product B) product mix. Note: Round your answer to 2 decimal places.
Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 5,100 $437,920 1,700 281,520 3,400 417,280 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,450 units of production. Total cost for 2,450 units: $fill in the blank 3
Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $21.15 per pound and costs $16.40 per pound to produce. Product D would sell for $42.80 per pound and would require an additional cost of $9.55 per pound to produce. The differential cost of producing Product D is Oa. $9.55 per pound Ob. $5.73 per pound Oc. $7.64 per pound Od. $11.46 per pound
Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 60,000 $19,200,000 69,000 20,010,000 90,000 24,090,000 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 86,000 units of production. Total cost for 86,000 units $fill in the blank 3
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
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Accel Corp makes two products: C and D. The following data have been summarized (Click the icon to view the data.) Accel Corp desires a 28% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Accel have to charge the customer to achieve that gross profit? Round to two decimal places Begin by selecting the formula to compute the amount that the company should charge for each product Direct labor cost per unit Direct materials cost per unit Indirect manufacturing cost per unit Product cost as a percentage of sales price Target gross profit percentage Total product cost per unit Get more help. Clear all Show work Required sales price per unit Check answer
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $88 per unit. Determine the markup percentage on total cost. %
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.40 for direct materials and $0.95 for direct labor. Incremental overhead to make this part is $1.48 per unit. The company can buy the part for $4.02 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: Enter your answers rounded to 2 decimal places. (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Make Buy

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