mabled: Exam 5SavedAssume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting systercost for this product:Direct materialsDirect laborManufacturing overheadTotal costPer Unit$ 181210$ 40The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainderunaffected by the volume of units produced within the relevant range.A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above fthis order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incuper unit of $3. It would also have to buy a special tool for $580 that has no other use or resale value after the special order is complthis order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the speciMultiple Choice$(300)Search< Prev 13 of 20 Next >LF5F6ㄓF7+F3تعال قالF44R$%25T6&277UF88*>F9F1019O*-F11O*+4PrtScF12

Relevant cost per unit other than special tool = Direct material + Direct labor + Variable…

Answered: mabled: Exam 5 Saved Assume a company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Q-4: Al Hamd associate manufactures two types of product X & Y and applies manufacturing overhead to all units on the basis of machine hour. Production information follows: Product X Anticipated volume (Units) Direct materials cost Direct labor cost 16,000 Rs70 Product Y 30,000 Rs120 Rs40 Rs40 The controller, who is studying the use of ABC, has determined that the firm's overhead can be identified with three activities: Activity Manufacturing setup Machine processing Product shipping Cost driver Number of setups Machine hours Outgoing shipments The activities and their respective cost drivers are as follows: Product X 100 Product Y 60 Total 160 Setups Machine hours 32,000 200 45,000 150 77,000 350 Outgoing shipments The firm total overhead of Rs.6,160,000 is subdivided as follows: Manufacturing setup Machine processing Product shipping Rs.1,344,000 Rs.3,696,000 Rs.1,120,000 Rs.6,160,000 Total Required: A. Compute the total cost of product X and Y by using company's current overhead…
Question 2: Pedagogy Inc. is an e-book reader manufacturer. The company's ABC system has the following five activity cost pools and activity rates: Activity Cost Pools Labor related Direct Material cost per units Direct Labor cost per unit Number of units produced per year Machine related Machine setups Production orders Shipments Cost and activity data have been supplied for the following products: Peda 101 Peda 101 Activity rates $115.00 $7.50 400 $18.00 per direct labor hour $20.00 per machine hour $40 per setup $120.00 per order $15.00 per shipment 210 300 3 4 5 Peda 102 Direct labor hours Machine hours Machine setups Production orders Shipments Compute the unit product cost of each of the products listed above. $210.00 $5.00 600 Total Expected Activity Peda 102 910 2,000 7 9 17 Peda 103 $280.00 $2.50 900 Peda 103 1,510 3,000 125 10
services SQU Libraries SQU Portal Attendance English (en O b. OMR605 O c. OMR545 O d. OMR635 O e. OMR575 XYZ Company provided the following information regarding Product XY: Direct material costs OMR3 per unit of product; Direct labor costs OMR5 per direct labor hour; Predetermined overhead rate OMR10 per direct labor hour. The cost of a job for 550 units of product XY, which uses a total of 100 direct labor hours, is: Select one: Oa. OMR5,400 Ob. OMR3,300 Oc. OMR3,150 Od. None of the answers given e. OMR9,900 Total manutacturing costs assioned inclucted 10 units heom ofs tota mana
TB MC Qu. 4-96 Welrlck, Inc., manufactures and sells ... Weirick, Inc., manufactures and sells two products: Product T8 and Product P4. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Overhead Cost $ 139,900 65,970 1,031,820 $1,237,690 Expected Activity Activity Cost Pools Labor-related Production orders Order size Activity Measures DLHS Product T8 Product P4 5,400 1,000 Total 8,100 1,600 2,700 orders 600 MHs 3,100 4,000 7,100 The total overhead applied to Product P4 under activity-based costing is closest to: (Round your Intermedlete calculations to 2 decimal places.) Multiple Cholce $965,850 $581,320 S652.687 Mc Graw Hill 10:55 AM 66°F Mostly cloudy 21 10/20/2021 P Type here to search DELL PgUp PgDn Home F11 F12 PrtScr Insert Delete F8 F9 F10 F2 F5 F6 F7 F3 F4 Num
S ipped Book erences Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: Mercon $ 10.00 Direct materials cost per unit Direct labor cost per unit Direct labor-hours per unit Number of units produced $ 3.00 0.20 10,000 These products are customized to some degree for specific customers. Wurcon $ 8.00 $ 3.75 0.25 40,000 Required: 1. The company's manufacturing overhead costs for the year are expected to be $336,000. Using the company's conventional costing system, compute the unit product costs for the two products. 2. Management is considering an activity-based costing system in which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: 1.…
A Cothing Manufacturing Company provides the following unit costs associated with one of its products: Direct materials. Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Operating costs Total $160 50 55 32 30 $327 What are the period costs per unit associated with the Product? O A $30 O B. $33 OC. $100 O D. $17
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs
Problem 1 QWE Company engages in manufacturing business of toys. The company records shown the following: Factory Overhead 2,500,000 Direct Materials Cost 4,000,000 Direct Labor Cost 2,000,000 Direct Labor Hours 625,000 Machine Hours 800,000 Units Produced 500,000 The company wants to determine the overhead rate for the application of overhead in its operation Required What will be the predetermined rate in applying the overhead applied using the following basis? a. units produced b. direct labor cost c. direct labor hours d. direct materials cost e. machine hours
Accounts Payable Accounts Receivable Accumulated Depreciation - Machinery Accumulated Depreciation - Office Equipment Accumulated Depreciation - Store Equipment Allowance for Doubtful Accounts Cash Commissions Income Depreciation - Machinery Depreciation - Office Equipment Depreciation - Store Equipment Doubtful Accounts Expense Factory Payroll (60% direct, 40% indirect) Finished Goods Inventory, Mar 1 Finished Goods Inventory, Mar 31 Interest Income Machinery Notes Receivable Office Equipment Office Salaries Other Costs (30% factory, 40% store, 30% office) Prepaid Insurance Expense R. Biff, Capital, Mar 1 R. Biff, Drawing Raw Materials Inventory, Mar 1 Raw Materials Inventory, Mar 31 Raw materials purchases Rent (60% factory, 20% store, 20% office) Repairs and Maintenance (60% factory, 40% office) Salaries and Wages Payable Sales Sales Discount Sales Returns and Allowances Store Equipment Store Salaries Supplies Inventory (50% factory, 30% store, 20% office) Supplies Used (40%…
I. PROBLEM SOLVINGAnswer the following items on the space provided. Show your computations.At the beginning of 201A, ABC Company had the following standard costs for one (1) of its chemical products:Direct material (3 pounds at P3.20) P9.60Labor standard (0.9 hours at P9.00) 8.10Variable overhead (0.9 hours at P1.50) 1.35Fixed overhead (0.9 hours at P4.00) 3.60Total P22.65ABC computes its overhead rates using budgeted capacity, which is 144,000 units. Actual results for 201Aare:Units produced 140,000 unitsMaterials purchased 421,175 lbs. at P3.30Materials used 421,000 lbs.Direct labor 128,750 hrs at P8.90Fixed overhead P517,525Variable overhead 218,000Required: Indicate whether conditions are favorable or unfavorable. 1. Material purchase price variance (MPPV)2. Material price usage variance (MPUV)3. Material quantity variance (MQV)4. Labor rate variance (LRV)5. Labor efficiency variance (LEV)6. Variable overhead (VOH) rate variance7. VOH efficiency variance8. Fixed overhead (FOH)…
Production and cost data Production and sales units Selling price (per unit) Materials (per unit) Labor (per unit) Manufacturing overheads Dept. A Standrad 192000 24000 $15 1.7 4.3 Dept. B Designer wear Number of machine set-ups 4 Marketing overheads $50 8 14.2 24 Engineering and PC Marketing and CS 745200 1296000 Use single-rate; direct method to allocate engineering and marketing overheads Engineering overheads include machine setting ($460,800) and inspection ($284,400) activities. Marketing involves channel ($496,000) and branding ($800,000) activities. The inspection and channel costs are driven by the number of units produced & sold. Computing product costs and profits under conventional and ABC approaches

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