Same as in the three questions before: Board Ltd. produces 3different skateboards, the details of which are as follows:Product code nameP1P2P3Selling price/unit€234€280€392Labour hours/unit1.5h2h3.5hEach labour hour has a cost of €16/h to the company.Material in kg/unit5kg5kg7kgThe cost for the material is €24/kg.Fixed cost allocated/unit€25€25€25Monthly demand200u.400u.200u.Since many workers have become sick, labour time is limited to1,000 hours in the following month. Calculate the contributionper limiting factor for each of the three skateboards.The company has a high level of fixed costs and wants tomaximise its total contribution/month. Which products shouldbe produced in order to maximise its total contribution for thefollowing month? Match the number of units that should beproduced to maximise profit, with the product codes.P1Choose..P2Choose...P3Choose..

When some input is in limited capacity , then we need to find out contribution per input. For…

Answered: Same as in the three questions before:…

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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XYZ Ltd. has the following costs for 1,000 units: Total Cost Direct materials E 1.500 Direct labour 7,500 Depreciation on building 30,000 What is the total amount of direct materials for 100 units? a. £1.50 b. £225.00 c. £3.00 d. £150.00 Cost per Unit € 1.50 7.50 30.00
MA2. Barley Brindle produces a single product, Product B. One unit of product B has a prime cost of £6.20, which included one hour of direct labour at £6.20, and each unit uses 0.5 hours of machine time. Estimated production of Product B in 2013 is 60,000 units. Total production overheads are estimated at £218,000. Calculate the overhead recovery rates and total cost of production, based on: a)Direct labour hours b)Machine hours c)Units of production
es ! Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit 0.50 0.80 Annual Production 25,000 units Rims Posts 88,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $17. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 26,400 $ 163,680 $ 500,000 Estimated Activity Rims 70 4,000 12,500 Posts 430 0 70,400 Total 500 4,000 82,900 2. Determine the unit product cost of each product…
Teja Sdn Bhd (TSB) produces two types of hiking gloves: premium and standard. The company uses direct labour hours as a basis to calculate plantwide overhead rate. Total overhead cost for the company is RM637,000. The breakdown of the overhead cost by activities is shown below: Activity Setting up equipment Activity Cost RM175,000 Machining RM154,000 Production scheduling RM73,500 Inspecting products RM101,500 Moving materials RM133,000 The cost drivers for the activity are production runs, number of moves, inspection hours, number of setups, and machine hour. The production data for the company is as follows: Units produced Premium 21,000 Standard 119,000 Direct materials RM189,875 RM665,525 Direct labour RM33,600 RM112,000 Direct labour hours 24,500 115,500 Number of setups 42 98 Machine hours 2,800 4,900 Production runs 84 210 Inspection hours 350 1,680 Number of moves…
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G Product B Selling price per unit $ 200 $ 230 Variable costs per unit 85 138 Contribution margin per unit $ 115 $ 92 Machine hours to produce 1 unit 0.4 hours 1.0 hours Maximum unit sales per month 650 units 250 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month. This change would require $11,500 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.)
North-South Pole Company produces two products, a jacket suitable for adventure-seeking people (Spirit) and a jacket for less-adventurous people (Companion). Production and Sales per year 20,000 units (Spirit) & 5,000 units (Companion) 3.5 hours per unit (both) $32.00 per hour $285,000 $180 per unit (both) Direct labour Direct labour cost Estimated annual manufacturing overhead Direct materials Breakdown of overhead rates Activity Cost Pools Estimated Expected Use of Cost Drivers per Activity Activity Based Overhead Rates Overhead Machine set-up Sewing Inspection $ 40,000 $135,000 37,500 machine hours (MH) $? per MH $ 25,000 $? per set-up 200 1000 | $? per inspection The breakdown between the two products for assigning overheads are as follows: Product No. of Set-ups Sewing 23,500 14,000 Inspections Spirit Companion 105 500 95 500 Required: From the following information, calculate the unit costs for "Spirit" and "Companion" using both the traditional method of costing (i.e.…
A machine costs 9,250 with a trade in value of 710. Th machine can produce 26,800 units and the annual production has been: 1st year 3,600 units 2nd year 4,980 units 3rd year 8,755 units 4th year 6,000 units Find the book value on the 3rd year (units of Production methods) O A. 5,523.91 B. 6,515.93 O c. 3,726.09 O D. 1,814.15
Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are Price per unit Variable cost per unit Machine minutes per unit The one machine that is used to produce both models has a capacity of 32,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $395,000. Sport $ 235 $88 6 Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter? Required A Required B Collegiate $ 420 $ 168 15 Complete this question by entering your answers in the tabs below. Sport Model Collegiate Model Suppose that the maximum unit sales in a quarter that WSG can achieve is…
Toraxia Inc. manufacturers a product that is packaged and sold in 10-kilogram bags. For 2023, the company developed the following standard costs per bag for direct materials and direct labour: Direct materials (10 kilograms @ $6.00 per kilogram) Direct labour (0.2 hours @ $28 per hour)Total standard cost per 10-kg bag Cost per Bag $60.00 5.60 ($65.60) In January, the company manufactured 3,500 bags. The company purchased 38,200 kilograms of materials costing $232,256 and used 36,500 kilograms. As well, the company paid $19,440 for direct labour and used 720 direct labour hours. Required: (A) Compute the materials price variance and materials usage variance and indicate whether each variance is favourable or unfavourable. (B) Compute the labour rate variance and labour efficiency variance and indicate whether each variance is favourable or unfavourable. (C) Provide possible reasons for each of the variances computed in (A) and (B). For example, regarding the materials price…
Vikram bhai
LZS Bhd produces a single product called MY2.5 which is being exported to Indonesia. You are the management accountant of LZS Bhd and for the month ended 31 May 2021 you are provided with the following information in relation to MY2.5. (i) Standard cost per unit of MY2.5. Direct Materials : 4 kg per unit at RM3 per kg Direct Labour : 5 hours per unit at RM4 per hour Variable Overhead : 5 hours per unit at RM1 per hour Fixed Overhead : 5 hours per unit at RM3 per hour (ii) Standard selling price of MY2.5 is RM60 per unit. (iii) Budgeted production was 10,000 units . (iv) Overheads are absorbed based on the direct labour hours. (v) The actual results for the year are as follows: Sales at 9,500 units at a total sales of RM 551,000 Material consumption : 37,000kg of material at a total cost of RM120,250 Labour paid per hour : RM4.1 per hour to all factory workers. Labour cost paid in total : RM 200,900 Overheads paid : Variable : RM 46,550; Fixed : RM 145,000 (vi) No stocks held at the end…
Giant Ltd manufactures three different types of products: X, Y and Z. It was expected that the production and demand for the next year on these products as follows: Product X Product Y Product Z Units 1500 2250 3000 Additional details about the products are also as follows: Each unit Product X Product Y Product Z £ £ £ Selling price 174 340 310 Materials 32 80 60 Labour 40 96 80 Variable overheads 24 60…

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