It doesn't get any buttered than this. The following table shows the number of bagsof popcorn that can be produced at Goofy's Popcorn Factory employing variousamounts of labor. Popped kernels hide from view several entries in the table.Yuck, yuck, yuck!!! There is nonetheless enough information to answer the threequestions that follow the table.a.b.C.Hours of Bags ofLabor Popcorn2812345678910630:0:0:0Average Productof Labor.(bags)*-*-*-*-Marginal Productof Labor(bags)08-02430-8If employees are paid $7.25 per hour, what is the average variable cost ofproducing 144 bags of popcorn?Assuming the same hourly wage as in part (a), what is the marginal cost ofproducing the number of bags corresponding to 8 hours of labor? In otherwords, what is the additional cost of that last bag produced?Between 128 and 144 bags of popcorn, are average variable costs increasingor decreasing? Briefly explain your answer.

Answered: Image /qna-images/answer/ac4aafb8-7feb-4e5e-9049-8f09bf30adf5.jpg

Answered: It doesn't get any buttered than this.…

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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Floyd Inc. produces the following three items of stuffed toys using an automated technology: Bear, Puppy, and Bunny. The estimation for the number of units produced, machine hours used, and direct labor hours used for each toy during the current year is provided in the table below. Estimation for Number of Units Produced, Machine Hours Used, and Direct Labor Hours Toy Number of units Machine hours (MH) Direct labor hours (DLH) Bear 2,000 8,000 MH 700 DLH Puppy 3,000 5,000 MH 1,000 DLH Bunny 5,000 4,000 MH 2,300 DLH The total machine running costs incurred during the year is $204,000. The allocation of machine running costs to these three items is based on machine hours. How much machine running costs are expected to be allocated to Bear during the year? Group of answer choices $96,000 $60,000 $48,000 $8,400
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Standard Rate Hours 30 minutes per Hour $ 5.60 Standard Cost $ 2.80 During August, 10,660 hours of direct labor time were needed to make 19,900 units of the Jogging Mate. The direct labor cost totaled $58,630 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,900 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,900 Jogging Mates? 3. What is the labor spending variance? 4. What are the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $51,168 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. Note: For requirements 3 through 5, indicate the effect of each variance by selecting "F" for…
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 Standard Rate per Hour Standard Cost 24 minutes $ 6.00 $ 2.40 During August, 8,380 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $48,604 for the month. Required: 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 $40,224 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Costs 350 $4,000 300 3,750 400 4,500 250 2,750 375 4,250 200 2,500 100 2,400 Month and Cleaned April May June July August September October Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = $ 1700 + $ 7 X Plot the data on scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost- estimating equation for monthly labor costs. Monthly labor costs = $ $ X Adjust the equation developed in requirement (b) to incorporate the…
The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: Selling Price per Unit $ 17.00 $ 6.50 $26.00 $ 12.00 $8.20 Product Debbie Trish Sarah Mike Sewing kit Demand Next year (units) 52,000 44,000 37,000 40,800 327,000 Direct Materials $ 4.50 $ 1.30 $ 6.74 $ 2.20 $ 3.40 Direct Labor $ 2.80 $ 1.40 $ 4.90 $ 3.50 $ 1.05 The following additional information is available: a. The company's plant has a capacity of 114,750 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pay rate will be $7 per hour. c. Fixed manufacturing costs total $540,000 per year. Variable overhead costs are $4 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor-hours are used to manufacture one unit of each of the…
Case 10-6. Just-in-time principles Warm Space Inc. manufactures electric space heaters. While the CEO, Gwen Willis, is visiting the production facility, the following conversation takes place with the plant manager, Tyra Chastain: Gwen: As I walk around the facility, I can't help noticing all the materials inventories. What's going on? Tyra: I have found our suppliers to be very unreliable in meeting their delivery commitments. Thus, I keep a lot of materials on hand so as to not risk running out and shutting down production. Gwen: Not only do I see a lot of materials inventory, but there also seems to be a lot of finished goods inventory on hand. Why is this? Tyra: As you know, I am evaluated on maintaining a low cost per unit. The one way that I am able to reduce my unit costs is by producing as many space heaters as possible. This a.llows me to spread my fixed costs over a larger base. When orders are down, the excess production builds up as inventory, as we are seeing now. But…
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 Standard Cost $2.79 $6.20 During August, 9,320 hours of direct labor time were needed to make 19,000 units of the Jogging Mate. The direct labor cost totaled $55,920 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,000 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,000 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 $4.50 per direct labor-hour. During August, the company incurred $44,736 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate…
Question 2 Use the following standard cost card for 1 gallon of ice cream to answer the questions. STANDARD COST CARD Product: Gallon of Ice Cream Standard Cost Manufacturing Cost Information Standard Cost Quantity per Unit Summary Direct Materials Cream 5 quarts $1.15 per quart $0.08 per ounce $36.00 per hour $5.75 Sugar 16 ounces $1.28 Direct Labor 3 minutes $1.80 Total Direct Costs $8.83 Actual direct costs incurred to make 50 gallons of ice cream: 275 quarts of cream at $1.05 per quart 832 ounces of sugar at $0.075 per ounce 165 minutes of labor at $37 per hour All material used was bought during the current period. C. Compute the material and labor variances. D. Comment on the results and possible causes of the variances.
Enviro Corporation manufactures a special liquid cleaner at its Green plant. Operating data for June follow: Materials $ 484,000 Labor 47,000 Manufacturing overhead 234,000 The Green plant produced 1,700,000 gallons in June. The plant never has any beginning or ending inventories. Required: Compute the cost per gallon of liquid cleaner produced in June. (Round your answer to 2 decimal places.)
Hello Company makes three different products. Due to the constraints of their manufacturing equipment and warehouse facility, the company is only able to produce, store, and sell a total of 50,000 units each month. The production of Products A and B varies each month; however, Product C is a special order for one customer who purchases the same number of units every month. Pete Davila, the CEO, has |provided the following data from last month for each product. Income Statement Product A Product B Product C Мax Cарacity 5,000 8.00 $ 2.00 $ Units 43,000 10.00 $ 3.00 $ 20,000 $ 2,000 50,000 Price per unit Variable expense per unit $ $ $ 50.00 15.00 $ 20.00 Total Fixed Costs 40,000 $ 10,000 Product Sales $ 430,000 $ 40,000 $ 100,000 $ 570,000 (169,000) 401,000 (70,000) 331,000 Variable Costs (129,000) (10,000) 30,000 $ (30,000) 70,000 $ Contribution Margin $ 301,000 $ Fixed Costs (20,000) 281,000 (40,000) (10,000) (10,000) 60,000 $ Operating income (loss) Required Using the Data Table…
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