Quest manufacturing incurs the following costs per unit: labor $100/unit, materials $50/unit, and rent $100,000/month.If the Quest produces 500,000 units a month, calculate the following: a. Total variable costs b. Total fixed costs c. Totalcosts

The costs incurred for production are classified as fixed and variable Costs. The variable costs…

Answered: Quest manufacturing incurs the…

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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Manly Beach Enterprises projects the following information for the coming year. Sales Production 1,900 units 2,000 units Selling price per sewing machine Total variable manufacturing cost Total fixed manufacturing cost Marketing and administrative cost (40% variable based on sales) $200 $160,000 $60,000 $80,000 a. Determine the projected net income using absorption costing: $ b. Determine the projected net income using variable costing: $
Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 10.580 10,000 10,580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552
Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $ 480,000, and fixed selling and administrative costs are $240, 000 per year. Required: Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Confirm your results by preparing a contribution margin income statement in excel for the break - even sales volume.
Develop an equation for total monthly production costs. Total Monthly Production costs = Fixed Costs + Variable Costs = _____________ + ($ per unit X Number of units) Predict total costs for a monthly production volume of 9,000 units.
Bell Corporation reports that at an activity level of 8,700 units, its total variable cost is $653,109, and its total fixed cost is $658,416. Use 8,800 units and Calculate the following: the total variable cost, the total fixed cost, the total cost, the average variable cost per unit, the average fixed cost per unit, and the average total cost per unit.
Harry Company sells 15,000 units at $44 per unit. Variable costs are $30.36 per unit, and fixed costs are $63,400. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

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Quest manufacturing incurs the following costs per unit: labor $100/unit, materials $50/unit, and rent $100,000/month. If the Quest produces 500,000 units a month, calculate the following: a. Total variable costs b. Total fixed costs c. Total