Maine Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-partclassification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $190 million ($18 million of which are fixed). Thistotal amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows:(Click the icon to view the data.)Read the requirements.Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2020.Begin by determining the formula needed to calculate the total manufacturing cost per unit.Total manufacturing costsUnits produced= Total manufacturing cost per unitUsing the formula you determined above, calculate the company's total manufacturing cost per unit for each type of product produced in July 2020. (Round your answers to the nearest cent.)Total manufacturing cost per unit produced in JulySupremeDeluxeRegular

Supreme, Deluxe, and Regular are the three paper products that Maine Office Products manufactures.…

Answered: Maine Office Products produces three…

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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2) Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2011 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2011 are as follows: Supreme Deluxe Regular Direct material costs $ 89 $ 57 $ 60 Direct manufacturing labor costs $ 16 $ 26 $ 8 Manufacturing overhead costs $ 48 $ 78 $ 24 Units produced 125 150 140 a. Compute the manufacturing cost per unit for each product produced in July 2011. b. Suppose that in August 2011, production was 150 million units of Supreme, 190…
Compute for the total Factory overhead rate of G Department, if the company uses the STEP METHOD in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required:1. Allocate the two support departments’ costs to the two operating departments using thefollowing methods:a. Direct method b. Step-down method (allocate MR first) c. Step-down method (allocate US first) d. The Algebraic method.
Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required:1. Allocate the two support departments’ costs to the two operating departments using thefollowing methods: a. Direct method b. Step-down method (allocate MR first) c. Step-down method (allocate US first) d. The Algebraic method. 2. Compare and explain differences in the support-department costs allocated to eachproduction department. 3. What approaches might be used to decide the sequence in which to allocate supportdepartments when using the step-down method?
A manufacturer has been offered a contract to manufacture a certain product that will utilize the waste materials from his present product. The new product will use 0.3kg of waste materials per unit which is presently sold by the company for P2.00 per kg. Other materials to be used will cost P0.80 per unit. Direct labor per unit will cost P2.30. The present overhead costs of the company amount to P380,000 plus 40% of the total for direct materials and direct labor costs per year. The buyer will pay the manufacturer per unit an amount equal to the increment costs plus P1.20 profit. Determine the selling price of the manufacturer per unit.
Compute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000…
Rakotan Co establishes the following standards for the costs of 1 unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Table 1 attached During December 2020, Rakotan Co purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. Wesley Co manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was 10,000 units. Table 2 attached Assume that the rest of the variances had been calculated and remarked correctly. For each of the variances on the list above : 1. Provide a brief explanation of the causes of variance 2. State who is responsible for the variance
Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2020, they estimated total manufacturing overhead costs at $1,203,750, and the estimated total direct labor costs at $1,500,000. The administration and selling overheads are to be absorbed in each job cost at 33⅓% of prime cost. Distribution costs should be added to each job according to quotes from outside carriage companies. The company wishes to quote for Job # B4000. Data for the job are as follows: Direct materials cost $159,500Direct labour cost $240,000Direct labour hours 400 hoursSpecial Design Cost $12,850Distribution quote from haulage company $17,900 d) Given that Job #4000 consisted of 250 units, determine the production cost per unit? Can I get assistance with part D please?
company manufactures a certain part for use in its assembly operation. cost per unit for 5,000 units of part is a total of P26.00 from the following: direct labor is P12.00; direct materials is P2.00; fixed factory overhead is P7.00 and variable factory overhead is P5.00. Company B offered company A 5,000 units for P27.00 per unit. If company A accepts some of its facilities presently used to manufacture the part could be used to help with the manufacture of part, thus saving P40,000.00 in relevant cost in its manufacture and eliminating P3.00 per unit of the fixed factory overhead. find the savings if any from buying instead of making.
Michael Scott Paper Co. uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.At the beginning of 2020, the company expected to incur the following:Michael Scott Paper Co.Beginning of 2020 Manufacturing overhead costs $1,001,910 Direct labor costs $1,512,800 Number of Machine hours to be used 73,400 At the end of 2020, the company had actually incurred:Michael Scott Paper Co.End of 2020 Direct labor costs $1,219,700 Depreciation on manufacturing plant equipment $596,400 Property taxes on plant $39,600 Sales Salaries $28,400 Delivery drivers wages $25,600 Plant janitor's wages $17,100 Number of Machine hours actually used 65,700 (Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rate. Total estimated overhead cost ? Total estimated quantity of the overhead allocation base =…
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) OA. $1.52 per labor hour OB. $100.00 per machine hour OC. $152.00 per machine hour O D. $31.25 per labor hour
Sunrise, Inc. manufactures gears as a component for its product. In 2022, Sunrise incurred the following costs in producing 12,000 pieces of gears: direct materials – P120,000; direct labor – P80,000; variable manufacturing overhead – P100,000; fixed manufacturing overhead – P200,000; and fixed non-manufacturing costs – P150,000. Makina Corp. offers to produce the 15,000 pieces of the gear component for Sunrise, Inc. needs in 2023. If the latter (Sunrise) accepts to buy the gears from Makina, 40% of the fixed manufacturing overhead will be avoided, but fixed non-manufacturing costs will not change. At what selling price of each gear from Makina will make Sunrise indifferent on whether to produce or buy the said gear components?

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