Production in units 25,000 Material costs P150,000 Direct labor costs 2,500 hours at P38.50 per hour Factory overhead P5 per swimsuit plus P50,000 per month Selling expense P2 per swimsuit plus P70,000 a month

Production in units 25,000 Material costs P150,000 Direct labor costs 2,500 hours at P38.50 per hour Factory overhead P5 per swimsuit plus P50,000 per month Selling expense P2 per swimsuit plus P70,000 a month

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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Baxter Company sold 9,000 units at $125 per unit. Normal production is 9,400 units. Standard: 5 yards per unit at $6.30 per yard Standard: 2.75 hours per unit at $16.00 Standard: Variable overhead at $1.05 per unit Standard: Fixed overhead $206,800 (budgeted and actual amount) Actual yards used: 45,760 yards hours at $6.25 per yard Actual hours worked: 24,500 hours at $15.90 per hour Actual total factory overhead: $236,500 Prepare an income statement that includes variances for the year ending December 31 through gross profit for Baxter Company using the above information. Enter favorable variances as negative numbers. Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance. Baxter Company Income Statement Through Gross Profit For the Year Ending December 31 Line Item Description Sales Cost of goods sold-at standard Gross profit-at standard Less variances from standard cost Direct materials price Direct materials quantity Direct labor rate…
ABC Corporation estimates handling cost at two-act levels:
Standard Cost of Product A: Php Materials (5kgs x Php10 per kg) 50 Labor (4 hrs. x Php 5 per hour) 20 Variable Overheads (4 hrs. x Php 2 per hour) 8 Fixed Overheads (4 hrs x Php 6 per hour) 24 102 Budgeted Results: Production 1,000 units Sales 1,000 units Selling Price Php 150 per unit Actual Results: Production 1,200 units Sales 900 units Materials 4,850 kgs. At Php 46.075 Labor 4.200 hrs at Php 21.210 Determine the material price variance. O Pho195425 (Unfavourable) O Php196425 (Favourable O PhoZ425 (Unfavourable) Pho2425 Favourable)
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3. Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers: Direct materials £50 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs 10 15 30 £105 The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables. What is the total cost of producing 3,000 tables? A) £255,000 B) £225,000 C) £175,000 D) £235,000
CASH BUDGET Richard LT Corporation is preparing its cash budget for the year 2015. Richard's beginning cash balance is P20,000. Sales are estimated to be at P500,000, 70% of which are on credit. A total of 80% of credit sales are expected to be collected in 2015. Cash expenditures for the year are forecasted to increase to P350,000, a 25% increase from previous year's balance. Accounts receivable from December 31, 2014 totaling10,000 will be collected in the current year. The company is required to make a P50,000 loan payment and an annual interest payment on December 31, 2015. The loan balance as of December 31, 2014 is P100,000 and the annual interest rate is 12%. Prepare a cash budget for the year ended December 31, 2015 *
Problem 1 Laughton Corporation makes two styles of cases for compact disks, the standard case and the deluxe case. The company has assigned $210,000 in monthly manufacturing overhead to three cost pools as follows: $90,000 to machining costs, $60,000 to production set-up costs, and $60,000 to inspection costs. Additional monthly data is provided below: Standard Case Deluxe Case $480,000 $189,000 Sales revenue Direct materials $135,000 $45,000 $105,000 $30,000 Direct labor 24,000 Machine hours 6,000 Production runs 7 12 3,000 Units produced and sold 33,000 The first and last unit in each production run is inspected for quality control purposes. Inspection costs are allocated to the products based on the number of inspections required. Machining costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires Required: (1) Allocate manufacturing overhead from the activity cost…
Weng CPAs charges for their services based on the following: Labor rate $ 160 per hourMaterials markup 40 %Using time and materials pricing, what is the total price for services requiring 8 labor hours and $50 of materials?
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A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component Machine hours per unit A B с 9 5 O $537,000 O $543,000 O $549,000 O $553,000 12 Show Transcribed Text Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained?
Direct Labor = $2.25 Materials = $2.30 Plant Overhead = $1.15 Administrative and selling expense = $0.80 Total = $6.50 A 10 percent markup ($0.65) was added to the cost per unit in arriving at the firm’s selling price of $7.15 (plus shipping). In May, LP received an inquiry from Southeast Department Stores concerning the possible purchase of folding chairs for delivery in August. Southeast indicated that they would place an order for 30,000 chairs if the price did not exceed $5.50 each (plus shipping). The chairs could be produced during the slow period using the firm’s existing equipment and workforce. No overtime wages would have to be paid to the workforce in fulfilling the order. Adequate materials were on hand (or could be purchased at prevailing market prices) to complete the order. LP management was considering whether to…