Please provide the answer to this general accounting question using the right approach. Nova Tools manufactures screwdrivers in a factorydesigned to produce 8 million units per year. In2023, the fixed production overhead related to thefactory was $880,000, and the factory produced 7.3million screwdrivers.What is the inventory cost per unit related to thefixed production overhead?a) $0.11b) $0.12c) $0.10

Step 1: Definition of Fixed Production Overhead per UnitFixed production overhead per unit refers to…

Answered: Nova Tools manufactures screwdrivers in…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CMA

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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 = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 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? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
What is the plant wide overhead rate on these financial accounting question?
West Company estimates that overhead costs for the next year... Can you please answer the general accounting question?
A manufacturer estimates its factory overhead costs to be $51,000 and machine hours to be 7,300 for the year. If the actual hours worked on production total 4,550 and the actual factory overhead costs are $30,070, what is the amount of the over- or under applied factory overhead?
Winston Company estimates that the factory overhead for the following year will be $609,500. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 26,500 hours. The total machine hours for the year were 54,700. The actual factory overhead for the year was $1,251,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar.$fill in the blank 16b238007062f94_1 b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.$fill in the blank 16b238007062f94_2 c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select -
Winston Company estimates that the factory overhead for the following year will be $533,900. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,100 hours. The total machine hours for the year were 54,800. The actual factory overhead for the year was $1,035,000. a. Determine the total factory overhead amount applied. Round to the nearest dollar.$fill in the blank 4aa682ff700b06f_1 b. Compute the over- or underapplied amount for the year. Enter the amount as a positive number.$fill in the blank 4aa682ff700b06f_2 c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank. fill in the blank 3396d0faf031ffc_2 fill in the blank 3396d0faf031ffc_3 fill in the blank 3396d0faf031ffc_5 fill in the blank 3396d0faf031ffc_6
What is the company's plantwide overhead rate?
What was the standard cost per unit of product?

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