REQUIRED: 1. Determine the total manufacturing overhead costs that Legaspi Company should incur next month. 2. Legaspi makes a product that has P20.00 in materials costs per unit. It requires two hours of labor time and 45 minutes of machine time. Laborers earn P20 per hour. What is the product's per unit variable manufacturing cost? 3. Suppose that labor time for the product is expected to increase 30 minutes. Machine time will remain the same. By how much would the per unit variable manufacturing cost increase?

REQUIRED: 1. Determine the total manufacturing overhead costs that Legaspi Company should incur next month. 2. Legaspi makes a product that has P20.00 in materials costs per unit. It requires two hours of labor time and 45 minutes of machine time. Laborers earn P20 per hour. What is the product's per unit variable manufacturing cost? 3. Suppose that labor time for the product is expected to increase 30 minutes. Machine time will remain the same. By how much would the per unit variable manufacturing cost increase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Variable manufacturing costs at ACME Corp. are as follows: $3.25 per unit $1.05 per unit Direct materials Direct labor Fixed manufacturing costs are $6,000 per month. If the company produces 4,500 units in March and sells 4,000 units, then what is total manufacturing cost at ACME Corp. in March?
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 42,100 $ 1,200 $ 14,600 $ 11,400 For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine- hours in June. Note that the company's direct labor is a fixed cost. Direct materials Direct labor Cost per Machine- Hour $ 5.50 Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.25
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 24,000 $ 282,400 Slowest month (December) 18,000 $ 220,000 If Macon expects to use 20,000 machine hours next month, what are the estimated direct labor costs?
A small company produces two products, x and y. Product x requires 1 hour of labour and 6 tons of raw materials, whereas each unit of product y requires2 hours of labour and 5 tons of raw material. The number of hours available each week is 40 and the available raw materials each week is 150 tons. If the contribution to profit is £2 per unit of product x and £3 per unit of y, determine the weekly production mix that will maximize profits.
Required information Exercise 5A-2 (Algo) Least-Squares Regression [LO5-11] [The following information applies to the questions displayed below.] Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns 2,500 2,500 2,800 3,100 3,700 5,100 5,600 5,600 4,800 4,100 Fixed cost per month Variable cost per rental return 2,200 3,000 Car Wash Costs $ 11,500 $ 13,400 $ 12,300 $ 15,000 $ 16,700 $ 24,300 $ 22,700 $ 23,400 $ 23,300 $ 22,600 $ 11, 200 $ 16,000 Exercise 5A-2 Part 2 (Algo) 2. Using least-squares regression, estimate the variable cost per rental return and the…
K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and $1,050,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 130,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.25 per direct labor hour. O $47.50 per direct labor hour. O $39.42 per direct labor hour. O $8.08 per direct labor hour. O $0.12 per direct labor hour.
If answered within 30mins,it would be great!!!
ABC INC product is currently produced at 10 materials, 40 labor and 15 overhead. If automation is implemented, the product can be produced at 10 materials, 5 labor and 35 overhead. At a total of 10,000 units, what is the net incremental cost or benefit if the production decides to move into automation?
The costs incurred in the manufacture of 75,000 units of a product are: Direct materials $80,000 Direct labour $15,000 Variable overheads $32,000 Fixed overheads $130,000 If output increases by 15%, what will be the effect, if any, on the variable cost per unit? Show solution
Flexmatrixs deals with different types of iron rods which has 6,900 machine hours available each month. Product 1 Product 2 Product 3 Contribution margin per unit 17.30 20.30 9.8 Machine hours per unit 4.00 3.00 2.00 The market demand is limited to 2,850 units of each of the three products. What is the maximum possible contribution margin that the company could make in any month?
Please help me
The Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months. Units sold last month 6,473 Direct materials $142,853 Direct labor $379,071 Manufacturing variable overhead $267,425 Selling and administrative costs $211,977 What is the break even quantity for a price of $382?