PROBLEM 6 The following information pertains to BBM Company's production of one unit of product A: Quantity Price Cost per unit P 0.30 per kg per unit P6.00 Materials - 7.5 kgs. P 2.25 Standard Labor - 0.6 hour. P10.00 Standard per hour per unit During the period, the company produced 15,000 units of product A. It purchased 140,000 kgs. Of materials at PO.25 per kilogram. It incurred direct labor cost of P90,780 at P10.20 per labor hour used. At the end of the period, the company's inventory of materials increased hy 25.000 kas Tho

PROBLEM 6 The following information pertains to BBM Company's production of one unit of product A: Quantity Price Cost per unit P 0.30 per kg per unit P6.00 Materials - 7.5 kgs. P 2.25 Standard Labor - 0.6 hour. P10.00 Standard per hour per unit During the period, the company produced 15,000 units of product A. It purchased 140,000 kgs. Of materials at PO.25 per kilogram. It incurred direct labor cost of P90,780 at P10.20 per labor hour used. At the end of the period, the company's inventory of materials increased hy 25.000 kas Tho

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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Question 8 Apple Corporation produces a single product. The standard costs for one unit of its product are as follows: Direct materials (6 pounds at $0.50 per pound) $3 Direct labor (2 hours at $10 per hour) Variable manufacturing overhead (2 hours at $5 per hour) 10 During November, 6,000 units were produced. The costs associated with November operations were as follows: Material purchased (36,000 pounds at $0.60 per pound) $21,600 Material used in production (28,000 pounds) Direct labor (12,800 hours at $9.75 per hour) 117,000 Variable manufacturing overhead incurred 53,760 What is the variable overhead efficiency variance for the product for November? O $8,000 Favorable O $8,000 Unfavorable O $4,000 Unfavorable O $4,000 Favorable 20
< Prev A company uses the following standard costs to produce a single unit of output. Direct materials Direct Manufacturing pounds at $0.70 per pound- 0.4 hour at $8.00 per hour labor $ 5.60 $ 3.20 $ 1.96 overhead 53 0.4 hour at $4.90 per hour - During the latest month, the company purchased and used 77,000 pounds of direct materials ata price of $0.90 per pound to produce 10,000 units of output Direct le month totaled $29,100 based on 3,880 direct labor hours worked. Variable manufacturing overhead costs incurred totaled $15 600 and fixed manufacturing overhee $10,000. Based on this information, the direct materials price variace for the month was: Multiple Choice $2,000 favorable $15,400 unfavorable $5,600 unfavorable $6,400 unfavorable Ne $5,600 favorable 23 of 25
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Question Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) Not yet answered Marked out of 0.80 P Flag question O a. 30 O b. 25 O c. 50 O d. None of the given answers O e. 46
Full Ton Company Financial Projection for Product USA For the Year Ended December 31, 20X2 Sales (100 units at $100 a unit)... $10,000 Manufacturing cost of good sold Direct Labor. $1,500 Direct Materials Used.. 1,400 Variable Factory Overhead. Fixed Factory Overhead.. Total Manufacturing cost of goods sold Gross Profit... 1,000 500 4,400 5,600 Selling Expenses: Variable. 600 Fixed 1,000 Administrative Expenses: Variable. 500 Fixed.... 1,000 Total selling and administrative expenses Operating Income.. _3,100 $ 2,500 Required: (1) How many units of Product USA would have to be sold to break even? (2) What would the operating income be if sales increase by 25%? (3) What would be the dollar sales at the breakeven point if fixed factory overhead increases by $1,700? (AICPA adapted)
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A company selling a single product with the cost of producing and selling a single unit of this product at the company's normal activity level of 60000 units per year. Direct material $5.10 Direct labor $3.80 Variable management overhead $1.00 Fixed manufacturing overhead $4.70 Variable selling and administrative expenses $1.50 Fixed selling and administrative expense $2.40 Capacity per year 75000 units Normal selling price per unit $21.00 Question: an order was received as a mail-order house for 15000 units at $14.00 per unit. This order would not affect the company's regular sales or the companies total fixed cost. What is the financial advantage or disadvantage of accept this special order? Thank you,
Required Information The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Beta $24 32 Direct materials Direct labor Variable manufacturing overhead Traceable fFixed manufacturing overhead Variable selling expenses Common fixed expenses %2442 42 34 31. Total cost per unit $173 607$ The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume that Cane normally produces and sells 59,000 Betas per year. What is the financial advantage (disadvantage) of iscontinuing the Beta product line? o search 近