Question 1The following data relates to periods 1 to 4 of a manufacturing company producing a singleproduct: -(RM)Variable cost per unitSelling price per unitFixed overhead per period30606,000Normal activity is 500 units and production and sales for the four periods are as follows: -Period 1 unitsPeriod 2 unitsPeriod 3 unitsPeriod 4 unitsSales500450500450400Production 500500500There were no opening stocks at the start of period 1.Required:(a) Prepare a profit statement for each of the periods 1 to 4, based on the variable costingsystem.(b) Prepare a profit statement for each of the periods 1 to 4, based on the traditionalabsorption costing system.(c) Assume that this manufacturing company makes Christmas decorative. If you are themanagement accountant, explain briefly the impact of sales and production cost ofsuch a product on profits if (1) absorption costing, or (ii) variable costing is adopted,and propose which costing system is most suitable here.

Variable Costing System: Under variable costing system, only variable production costs are…

Question 1 The following data relates to periods 1 to 4 of a manufacturing company producing a single product: - (RM) Variable cost per unit Selling price per unit Fixed overhead per period 30 60 6,000

Question 1 The following data relates to periods 1 to 4 of a manufacturing company producing a single product: - (RM) Variable cost per unit Selling price per unit Fixed overhead per period 30 60 6,000

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 19?
nttps:25A%252F%252HM..mh A company allocates materials handling cost to the company's two products using the below data: Product A Product B Total expected units produced 5,400 11,800 Total expected material 530 470 moves Expected direct labor-hour 670 150 per unit The total materials handling cost for the year is expected to be $182,000. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Product B? (Round your intermediate calculations to 5 decimal places.) Multiple Choice $97,944 $74,263 $35,671 $59.791
A 1 Original Data: 2 3 4 5 6 7 8 9 10 11 12 Part 1 13 14 15 16 Estimated MOH Estimated DLHS 28 29 B Selling price per unit Direct materials per unit Direct labour per unit Direct labour-hours per unit Estimated annual productio POR: 17 18 Sales 19 Less product costs 20 21 22 23 Total product costs 24 Product margin Direct materials Direct labour Manufacturing overhead 25 Units produced and sold: 26 Product margin per unit 27 $1,350,000 112,500 High Grade $212.50 $83.50 $30.00 1.00 75,000 High Grade D Professional $387.00 $212.00 $45.00 1.50 25,000 per DLHs Professional Total
QUESTION 1 E22.1 E22.1 (LO 1) Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Define and classify variable, fixed, and mixed costs. Costs Incurred Production in Units 5,000 10,000 Production Costs Total Cost Cost/Unit Total Cost Cost/Unit Direct materials $8,000 $1.60 $16,000 $1.60 Direct labor 9,500 1.90 19,000 1.90 Utilities 2,000 0.40 3,300 0.33 Rent 4,000 0.80 4,000 0.40 Maintenance 800 0.16 1,400 0.14 Supervisory salaries 1,000 0.20 1,000 0.10 Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost above as either variable, fixed, or mixed.
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1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 d
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Question 5 Using the following table a) construct the cost schedule for a firm operating in the short run Marginal Average Average Average Fixed Quantity- Total Total Total Production Fixed Variable Cost Cost Variable Total cost cost Cost Cost Cost $180 $180 --- --- ---- ---- 1 $200 2 $215 3 $225 4 $230 5 $240 $260 7 $295 8 $345 9 $405 b) Graph the average variable cost, average total cost and marginal cost curves.
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Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…