Shalom Company has provided the following data concerning its costs: Fixed cost per month Cost per hour 22,300 1.00 5,000 2.00 6.00 1 Administrative expenses 2 Depreciation 3 Supplies 4 Rent 5 Utilities 6 Wages and salaries 15,000 4,700 24,100 3.50 35.00 The company planned to work for 300 hours in February for P350 per hour. However, it worked 360 hours during that month, an activity level within its relevant range. Amounts must be in whole numbers. Example: 88,000 or (88,000) In your planning budget, what was the total costs of Shalom Company in February?

Shalom Company has provided the following data concerning its costs: Fixed cost per month Cost per hour 22,300 1.00 5,000 2.00 6.00 1 Administrative expenses 2 Depreciation 3 Supplies 4 Rent 5 Utilities 6 Wages and salaries 15,000 4,700 24,100 3.50 35.00 The company planned to work for 300 hours in February for P350 per hour. However, it worked 360 hours during that month, an activity level within its relevant range. Amounts must be in whole numbers. Example: 88,000 or (88,000) In your planning budget, what was the total costs of Shalom Company in February?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CMA

See similar textbooks

Similar questions

Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 60,000 or its expected machine hours of 30,000. Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 90 direct labor hours, and 75 machine hours. Wages are paid at $16 per hour.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Shalom Company has provided the following data concerning its costs: Fixed cost per month Cost per hour 1 Administrative expenses 22,300 1.00 M 2 Depreciation 5,000 2.00 M 3 Supplies 6.00 V 4Rent 15,000 F 5 Utilities 4,700 3.50 M 6 Wages and salaries 24,100 35.00 M The company planned to work for 300 hours in February for P350 per hour. However, it worked 360 hours during that month, an activity…
Shalom Company expects to produce 1,200,000 units of Peace Products in 2023. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials P4, direct labor P6, and overhead P8. Budgeted fixed manufacturing costs per unit for depreciation are P2 and for supervision P1. Amounts must be in whole numbers. Example: 88,000 or (88,000) In your flexible budget report, what is the total variable manufacturing costs for 40,000 units?
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 20,900 $15.00 Wages and salaries Parts and supplies Equipment depreciation. Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $47.00 per repair-hour. Revenue Expenses: $ 2,700 $ 5,710 $ 4,610 $ 3,840 Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 7.40 $ 0.45 $ 1.60 $ 0.80 Administrative expenses Total expense Net…
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
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 21,500 $ 15.00. $7.30 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Revenue Expenses: Administrative expenses $ 0.50 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $54.00 per repair-hour. $ 2,760 $ 5,740 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 4,630 $ 3,820 Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income $…
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) 14,000 $ 265,000 Slowest month (December) 6,000 $ 129,000 What are the direct labor costs per machine hour?