Kirby Fasteners supplies the electronics Industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6: Kirby Fasteners Plant Number 6 January to June Results Total Cost $ 198,900 189,795 224,400 237,880 216,555 213,212 Volume (Units) 11,300 10,240 13,570 14,100 12,180 11,880 Required: a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 12,300 units in July. Based on the results from requirement (a), what would be the estimated production costs in July? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. Note: Round "Variable cost" answer to 2 decimal places. Variable cost Fixed cost < Required A Required B >

Kirby Fasteners supplies the electronics Industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6: Kirby Fasteners Plant Number 6 January to June Results Total Cost $ 198,900 189,795 224,400 237,880 216,555 213,212 Volume (Units) 11,300 10,240 13,570 14,100 12,180 11,880 Required: a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 12,300 units in July. Based on the results from requirement (a), what would be the estimated production costs in July? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. Note: Round "Variable cost" answer to 2 decimal places. Variable cost Fixed cost < Required A Required B >

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

Telecom uses activity - based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $20.00 of direct materials, includes 50 parts and requires 3 hours of machine time. Additional information follows: Activity Materials handling Machining Assembling Packaging What is the cost of machining per phone? A. $6 B. $9 C. $200 O D. $175 Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $3.50 per part $2.00 per machine hour $4.00 per part $3.00 per finished unit
Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $539,780 + $1.32X, where X equals number of smokers. Last year, SmokeCity produced 19,700 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year?
Alibaba Manufacturing manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Standard Costs Actual CostsDirect materials 3 lbs. per widget at 31,000 lbs. at $34 $35 per pound per poundDirect labor 2.5 hours per widget 22,500 hours at at $11 per hour $11.80 per hourFactory overhead Variable cost, $24/widget $241,500 variable cost Fixed cost, $40/widget $381,250 fixed cost Budgeted factory overhead was $640,000. Overhead applied is based on widgets produced. The company estimated that 10,000 widgets would be produced; however, only 9,600 were produced. InstructionsCalculate the following amounts.1. Rate at which total factory overhead is applied2. Materials price…
Required information EX 10-22, 23 (Algo) Use the following information for the Exercises below. Saskatchewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.65 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms EX 10-22 (Algo) Part 1: Use the variance formulas to compute the direct-material price and quantity variances... Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate whether each…
Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the same assembly and finishing process and are assembled in the same factory. They differ in the quality and detail of the materials. The following data reflect expected operations for the upcoming year. Sport Custom Total Number of units 3,200 1,800 5,000 Direct materials cost per unit $ 400 $ 1,100 Conversion costs: Direct labor $ 1,832,000 Overhead 2,608,000 Total $ 4,440,000 Required: Larned Recreation uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Sport and Custom models for the upcoming year. The financial team at Larned suggests that a two-stage system be used to compute the product cost of the two models. Their recommendation is to assign direct labor cost based on the number of units and overhead cost based on direct materials cost. Compute the cost per unit of…
Product Costs using Activity Rates Hercules Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $30 per machine hour Assembly $35 per direct labor hour Setup $90 per setup Inspecting $20 per inspection Production scheduling $19 per production order Purchasing $5 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 600 400 Direct labor hours 190 223 Setups 30 30 Inspections 15 25 Production orders 40 30 Purchase orders 318 85 Units produced 500 320 Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. Total…
Please solve this
Need help on 4. and 5. on this question
Following costs and revenue are incurred/earned by Toy inc. on each unit of teddy bear: Selling price Materials $49 $12 Labour $15 Variable overhead Fixed overhead $7 $6 Toy Inc. has received an offer from a customer. The customer is ready to buy 1,500 unitsat $37 each. However, the customer is asking for customized colouring on the teddy bear'spocket, which will require additional $1 per teddy bear. Should the offer from customer be accepted by Toy Inc.? Accept due to Incremental profit of $3,300. Reject due to Incremental loss of $3,000. Accept due to Incremental profit of $3,000 Reject due to incremental loss of $3,300
Need help with question B sales vale at split off point. Please show how you got the numbers. I really need help calculating cost per liter for each product. Thanks
Neely Systems Corporation manufactures and sells various high-tech office automation products. Two divisions of Neely Systems Corporation are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a "super chip," that can be used by both the Computer Division and other external customers. The following information is available on this month's operations in the Computer Chip Division: Selling price per chip $50 Variable costs per chip $20 Fixed production costs $60,000 Fixed SG&A costs $90,000 Monthly capacity 10,000 chips External sales 6,000 chips Internal sales 0 chips Presently, the Computer Division purchases no chips from the Computer Chips Division, but instead pays $45 to an external supplier for the 4,000 chips it needs each month. Refer to Neely Systems Corporation. Two possible transfer prices (for 4,000 units) are under consideration by the two divisions: $35 and $40. Corporate profits would…
I would like to get answers for a), b) and c) the question is attached below...