Assume that each year a company normally produces and sells 80,000 units of its onlyproduct for $40 per unit. The company's average unit costs at this level of activity aregiven below:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling expensesFixed selling expensesTotal cost per unit$ 9.5010.002.805.001.704.50$ 33.50One of the company's raw material suppliers is experiencing a shortage that will last forthree months. The company can respond to this shortage in one of two ways over thenext three months. It has enough raw materials on hand to enable it to continue operatingat 25% of normal output. The second option is to close down the plant for three months.Under this option, the company could avoid 40% of the fixed manufacturing overheadcosts that it would ordinarily incur during this three-month period. Furthermore, its fixedselling expenses would continue at 30% of their normal levels during the three-monthclosure. How much total fixed cost will the company avoid if it closes the plant for threemonths?

An expense that doesn't change based on the volume of goods or services produced within a certain…

Answered: materials labor le manufacturing…

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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5- Sunshine Gardens overhead expenses are: Indirect material pounds per unit Indirect material cost per pound 0.50 $ 1.00 1.00 $ 16.50 $ 0.75 $ 0.20 $10,000 $ 9,000 $ 3,000 $ 1,500 Indirect labor hours Indirect labor rate per hour Variable maintenance per unit Variable utilities per unit Supervisor salaries Maintenance salaries Insurance Depreciation Given production of 10,200; 11,300; 12,900; and 13,200 for each quarter of the next year, prepare a manufacturing overhead budget for each quarter.
Which accounts are affected when $133,000 of indirect goods are used in production?
ZAD1 Sunshine Gardens overhead expenses are: 0.50 Indirect material pounds per unit Indirect material cost per pound Indirect labor hours $ 1.00 1.00 $ 16.50 Indirect labor rate per hour Variable maintenance per unit $ 0.75 $ 0.20 Variable utilities per unit Supervisor salaries $10,000 Maintenance salaries $ 9,000 Insurance $ 3,000 Depreciation $ 1,500 Given production of 10,200; 11,300; 12,900; and 13,200 for each quarter of the next year, prepare a manufacturing overhead budget for each quarter.
nable Robin Company has the following balances for the current month: Direct materials used $10,000 $25,000 $ 9,800 $ 2,000 $ 6,450 $ 9,650 $ 4,300 Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Pactory lease What ere Robin's prime costs?
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Green and White Company reported the following monthly data: Units produced Sales price Direct materials Direct labor Variable overhead Fixed overhead What is Green and White's contribution margin for this month if 1,090 units were sold? Multiple Choice O $74,400 $26,160 $32,700 3,100 units $ 30 per unit $ 1 per unit $ 2 per unit $ 3 per unit $ 12,400 in total $93,000
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 32.50 13.00 19.50 26.00 $91.00 An outside supplier has offered to provide Cotton with the 10,000 subcomponents at an $84.50 per-unit price. No portion of fixed overhead is avoidable. If Cotton accepts the outside offer, what will be the effect on short-term profits?
A 1 Original Data: 2 3 4 5 6 7 8 9 10 11 12 Part 1 13 14 15 16 Estimated MOH Estimated DLHS 28 29 B Selling price per unit Direct materials per unit Direct labour per unit Direct labour-hours per unit Estimated annual productio POR: 17 18 Sales 19 Less product costs 20 21 22 23 Total product costs 24 Product margin Direct materials Direct labour Manufacturing overhead 25 Units produced and sold: 26 Product margin per unit 27 $1,350,000 112,500 High Grade $212.50 $83.50 $30.00 1.00 75,000 High Grade D Professional $387.00 $212.00 $45.00 1.50 25,000 per DLHs Professional Total
Bowie Inc., a manufacturer of earnings, has accumulated the following cost information for products A and B: Production volume Engineering costs incurred Engineering costs per batch Batch size Total direct manufacturing labor hours Direct manufacturing labor hours/unit A $2.67 $4.00 $1.60 B $2.14 $3.00 500 $1.50 $2,000 $800 200 750 1.5 B 1,000 Assuming activity-based costing (ABC) is used, what is the engineering cost per unit for products A and B? $3,000 $1,500 500 1,400 Total $5,000 2,150
1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 d
5 Vista Company reports the following information. Direct materials Direct labor Variable overhead Fixed overhead Units produced Compute its product cost per unit under absorption costing. Multiple Choice $76.00. $152.00. $171.00. $ 44 per unit 64 per unit $ 44 per unit $ 380,000 per year 20,000 units < Pr
Question 8 SP for Direct Labor per direct labor hour $1.70 Actual Direct Labor $12,960 SQ x SP for Direct Labor $11,560 Actual Direct Labor Hours 6,500 The standard quantity (SQ) of direct labor hours is: O 6500 O 7000 O 6800 O 7624 (rounded) O Cannot be determined.

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materials labor le manufacturing overhead manufacturing overhead le selling expenses selling expenses $9.50 10.00 2.80 5.00 1.70 4.50