Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are

Leeds Corp. produces product BR500. Shamokin expects to sell 10,000 units of BR500 and to have an ending finished inventory of 2,000 units. Currently, it has a beginning finished inventory of 800 units. Each unit of BR500 requires two labor operations, one labor hour of assembling and two labor hours of polishing. The direct labor rate for assembling is $10 per assembling hour and the direct labor rate for polishing is $12.50 per polishing hour. The expected number of hours of direct labor for BR500 for this period are

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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The Vinta Company estimates its factory overhead for the next period at P2,500,000. It is estimated that 40,000 units will be produced at a material costs of P1,600,000 and will require 100,000 direct labor hours at an estimated cost of P1,000,000. The machine will run about 320,000 hours. What is the predetermined factory overhead rate based on material cost? * P25.00 O 250.00% O P7.8125 156.25% O P62.50
Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) a. 30 ОБ. 60 O c. 38 O d. None of the given answers e. 54
Han Products manufactures 22,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $72,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?
Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
Salt-of-the-Earth Brick Company makes fired clay bricks for construction. The company uses a standard costing system that calls for 2.75 kilograms of clay at $.20 per kilogram for each brick. The standard cost for labour is .075 hour at $32 per hour for each brick. In August, Salt-of-the- Earth anticipates production to be at a level of 200,000 bricks. During August, Salt-of-the-Earth manufactured 201,000 bricks. The company purchased 553,000 kilograms of clay at a cost of $132,720. The cost of direct labour was $485,060 for 15,350 hours. a) Calculate the materials price and quantity variances and indicate whether the variances are favourable or unfavourable. b) Calculate the labour price and quantity variances and indicate whether the variances are favourable or unfavourable.
Terminator, Inc., manufactures a motorcycle part in lots of 350 units. The raw materials cost for the part is $170, and the value added in manufacturing 1 unit from its components is $320, for a total cost per completed unit of $490. The lead time to make the part is 2 weeks, and the annual demand is 3,800 units. Assume 50 working weeks per year. a. How many units of the part are held, on average, as cycle inventory? nothing units. (Enter your response as an integer.) What is its value? $nothing. (Enter your response as an integer.) b. How many units of the part are held, on average, as pipeline inventory? nothing units. (Enter your response as an integer.) What is its value? $nothing. (Enter your response as an integer.)
Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) О а. 46 Оь. 25 None of the given answers O d. 50 O e. 30