NUBD Corporation manufactures and sells headphones. Information on the prior year's operations (sales and production Model X) is presented below: Sales price per unit Costs per unit: Direct material Direct labor Overhead (40% variable) Selling costs (50% variable) Production in units Sales in units P30 4 6. 10 10,000 9,500

NUBD Corporation manufactures and sells headphones. Information on the prior year's operations (sales and production Model X) is presented below: Sales price per unit Costs per unit: Direct material Direct labor Overhead (40% variable) Selling costs (50% variable) Production in units Sales in units P30 4 6. 10 10,000 9,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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?
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
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SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output is shown below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product V9 300 5.0 1,500 Product B1 800 3.0 2,400 Total direct labour-hours 3,900 The direct labour rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product V9 $176.90 Product B1 $262.80 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product V9 Product B1 Total Labour-related DLHs $94,848 1,500 2,400 3,900 Machine setups…
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Barkes, Incorporated, manufactures and sells two products: Product BO and Product B5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product B0 Product B5 Total direct labor-hours Total Direct Expected Hours Per Labor- Production Unit Hours 400 7.0 500 4.0 Activity Cost Pools Labor-related Production orders Order size Direct Labor- The direct labor rate is $22.10 per DLH. The direct materials cost per unit is $288.10 for Product BO and $118.90 for Product B5. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Estimated Overhead Cost Activity Measures DLHs orders MHS 2,800 2,000 4,800 $ 136,944 64,629 588,294 $ 789,867 Product B0 Product B5 2,800 2,000 500 400 3,300 3,000 Total 4,800 900 6,300 The total overhead applied to Product BO under activity-based costing is closest to: (Round your…
Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E0 330 9.3 3,069 Product N0 1,150 8.3 9,545 Total direct labor-hours 12,614 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E0 Product N0 Total Labor-related DLHs $ 297,890 3,069 9,545 12,614 Production orders orders 57,087 450 550 1,000 Order size MHs 581,366 5,150 4,850 10,000 $ 936,343 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice A. $57.09 per MH B.…