Question 24View PolicieSCurrent Attempt in ProgressFoxx Company incurs $520000 overhead costs each year in its three main departments, setup ($40000), machining ($335000), and packing($145000). The setup department performs 40 setups per year, the machining department works 5000 hours per year, and the packingdepartment packs 500 orders per year. Information about Foxx's two products is as follows:Product A1 Product B1Number of setups2020Machining hoursOrders packed10004000350150400Number of productsmanufactured600Using ABC, how much overhead is assigned to Product A1 each year?O $130500O $389500O $260000O $104000)

Activity based costing is a strategy for dispensing overheads in an efficient way. The expenses are…

Answered: Question 24 View PolicieS Current…

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 Content Area Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: Machine Hours Quantity Produced 4-inch 5,000 15,000 rolls 6-inch 12,000 12,500 rolls 9-inch 7,000 11,200 rolls After installing JIT, three manufacturing cells were created, and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell. Cell, 4-inch $125,000 Cell, 6-inch 175,000 Cell, 9-inch 165,000 The maintenance cost per roll of 9-inch insulation before JIT is installed would be a. $14.00. b. $11.25. c. $7.75. d. $30.00.
Problem 9 Comely Products manufactures three products R, S and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50,000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further processing cost Selling Price Product R P30,000 P10.00 Product S P20,000 P12.00 Product T P30,000 P15.00 Assuming that all units are sold, the gross margin on sales for Product S is
Question 2 Capstone Company has two divisions. The Bottle Division produces products that have variable costs of $3 per unit. It has annual production of 200,000 units. 160,000 units of the products are sold to outsiders at $5 per unit and 40,000 units to the Mixing Division. The fixed costs of the Bottle Division are $125,000 per year. There was no beginning or ending inventories during the year. Mixing sells its finished products to outside customers for $11.50 per unit. Mixing has variable costs of $2.50 per unit in addition to the costs from the Bottle Division. The annual fixed costs of Mixing were $85,000. There was no beginning or ending inventories during the year. Required: a) How much should be the minimum transfer price: (i) if market for the products from Bottle Division is perfectly competitive? (ii) if intermediate market exists that is not perfectly competitive, and the Bottle Division has no unused capacity?
Question 6 Oriole Company is planning to sell 1100 boxes f ceramic tile, with production estimated at 970 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $19 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Oriole has 3100 pounds of clay mix in beginning inventory and wants to have 5000 pounds in ending inventory. What is the total amount to be budgeted in pounds for direct materials to be purchased for the month? O40780 O 44580 O50300 O 42680
Question 5.1 Stark and Company would like to evaluate one of the product lines that they sell to the defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month. Selling price Units in beginning inventory $105 110 Units produced 6,400 Units sold 6,100 Units in ending inventory Variable costs per unit: 410 Direct materials $62 Direct labour $48 Variable manufacturing overhead Variable selling and administrative Fixed costs: $3 $7 Fixed manufacturing overhead Fixed selling and administrative $64,000 $35,600 Submission Instructions: 1. Under variable costing, identify the unit product cost for the month. 2. What is the unit product cost for the month under absorption costing? 3. Prepare an income statement for the month using the contribution format and the variable costing method. 4. Prepare an income statement for the month using the absorption costing method.
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Question 2 Pisang Berhad produces 500,000 switches per year with the following costs: (For the production of 500,000 switches) RM Direct materials 1,000,000 Direct labour 750,000 Variable manufacturing expenses 300,000 450,000 Fixed manufacturing expenses Total cost 2,500,000 RM5/unit Cost/per unit RM2,500,000/500,000 units + A supplier has approached the company, and offered the switches at RM4 per unit. Should the company decided to purchase from the supplier, the company need to employ an incoming quality controller with a salary of RM70,000 per annum. Other than this, all the other fixed manufacturing expenses will remain unchanged. Required: a) Should Pisang Berhad continue with the production of switches internally, or to purchase the switches from the external supplier? Support your answer with appropriate calculations. b) Will your answer change if the facilities freed up by the company can be used to do alternative works that will contribute an annual profit of RM50,000? Why?…
Question list Quesuvi 12 O Question 13 O Question 14 O Question 15 O Question 16 O Question 17 K Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: Sale price per unit $45 Variable costs per unit: Manufacturing Marketing and administrative $27 $6 Total fixed costs: Manufacturing $79,000 $20,000 Marketing and administrative If a special sales order is accepted for 8,200 umbrellas at a price of $37 per unit, and fixed costs increase by $16,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) Increase by $16,800 O A. O B. Increase by $48,800 O C. Increase by $66,000 O D. Decrease by $16,800
Question 1 Easy Efforts Company is in the process of setting a target price for its coffee mug heaters and portable hard drives. The marketing department has projected impressive sales as soon as they launch. Cost data relating to the coffee mug heaters and portable hard drives at a budgeted volume of 4,000 units is as follows: Unit Cost Direct Materials $120 Direct Labour $150 Variable Manufacturing overhead cost $25 Variable selling and Administrative expenses $15 Total Cost Fixed manufacturing overhead cost $650,000 Fixed…

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