Problem 10: Fa The following are the standard cost data of Paul Corporation for the month of January 2020: a. Each unit of chair requires 0.50 hours of labor time to produce. b. Variable FOH is applied at the rate of P10 per labor hour. c. Fixed FOH is applied at the rate of P5 per labor hour, based on expected annual capacity of 25,000 hours. Actual Production data: Number of chairs produced Actual number of labor hours Variable FOH cost incurred Fixed FOH cost incurred . 52,000 units 26,500 hours P270,000 P140,000 Required: Compute the following: 1. Calculate the variances using 1 way approach 2. Calculate the variances using 2 way approaches 3. Calculate the variances using 3 way approaches 4. Calculate the variances using 4 way approaches

Problem 10: Fa The following are the standard cost data of Paul Corporation for the month of January 2020: a. Each unit of chair requires 0.50 hours of labor time to produce. b. Variable FOH is applied at the rate of P10 per labor hour. c. Fixed FOH is applied at the rate of P5 per labor hour, based on expected annual capacity of 25,000 hours. Actual Production data: Number of chairs produced Actual number of labor hours Variable FOH cost incurred Fixed FOH cost incurred . 52,000 units 26,500 hours P270,000 P140,000 Required: Compute the following: 1. Calculate the variances using 1 way approach 2. Calculate the variances using 2 way approaches 3. Calculate the variances using 3 way approaches 4. Calculate the variances using 4 way approaches

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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TB Problem Qu. 4-209 Daba Company manufactures two products, Product F ... Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,400 units of Product F and 2,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 16,720 132 setups 88 setups 220 setups Purchase orders $ 90,640 741 orders 1,319 orders 2,060 orders Order size $ 52,080 1,290 hours 1,190 hours 2,480 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.) What is the overhead cost per unit for F and G.
Exercise 18-21 (Algo) Predicting unit and dollar sales using contribution margin LO C2 Nombre Company management predicts $1,632,000 of variable costs, $2,213,000 of fixed costs, and income of $235,000 in the next period. Management also predicts that the contribution margin per unit will be $51. (1) Compute the total expected dollar sales for next period. Contribution margin Income (2) Compute the number of units expected to be sold and produced next period. Numerator: 1 Denominator: = = Units Units
Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6: Kirby Fasteners Plant Number 6 January to June Results Volume (Units) 11,100 10,040 13,370 13,900 11,900 11,680 Required: a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 12,100 units in July. Based on the results from requirement (a), what would be the estimated production costs in July? Total Cost $ 196,900 187,795 222,400 235,080 214,555 211, 212 Complete this question by entering your answers in the tabs below. Required A Variable cost Fixed cost Required B Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. (Round "Variable cost" answer to 2 decimal places.)
Calculating contribution margin Glenn Company sells a product for $80 per unit. Variable costs are 51360 per unit, and fixed costs are $800 per month. The company expects to sell 560 units in September. Calculate the contribution margin per unit, in total, and as a ratio.
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Question 2 The following monthly data in contribution format are available for the Ross Company and its only product. Product SD: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ $ $ $ $ 381,600 304.800 76,800 34,500 42,300 Per Unit $ 5 159 127 32 The company produced and sold 2,400 units during the month and had no beginning or ending inventories. a) What is the current operating leverage? b) Projections indicate that the market will worsen by 15% next month. What is the projected net operating income given this increase?
Problem 1: Variable Cost, Fixed Cost, Contribution Margin Income Statement Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Productcosts include:Direct materials per helmet $ 30Direct labor per helmet 8Variable factory overhead per helmet 4Total fixed factory overhead 20,000Variable selling expense is a commission of $3 per helmet; fixed selling and administrativeexpense totals $29,500.Required:1. Calculate the total variable cost per unit.2. Calculate the total fixed expense for the year.3. Prepare a contribution margin income statement for Head-First Company for the coming years.
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $219,590 2,710 units February 168,480 1,680 March 262,080 4,080 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost
Fixed costs in total: Manufacturing $100,000 (Budgeted or planned and actual) Selling & Admin $ 75,000 Variable costs per unit: Manufacturing $ 11 Selling & Admin. $ 2 There were 5,000 units in inventory January 1, 2011. During the year 25,000 units were produced and 28,000 units were sold. Planned or budgeted production was 20,000 units. Under variable costing, the product cost of one unit would be: Assume that the operating income under variable costing is $28,000. What is the operating income under absorption costing? (You do not need to prepare an income statement to answer this question and the Price per unit is not given.) The Production Volume Variance (PVV) variance is: Should the PVV be ‘added’ or ‘subtracted’ from COGS to make the adjustment?