Provide correct answer the accounting question Shimano Company makes a product that is expected torequire 6 hours of labor per unit of product. The standardcost of labor is $5.30. Shimano actually used 5.90 hours oflabor per unit of product. The actual cost of labor was $5.20per hour. Shimano made 1,600 units of product during theperiod. Based on this information alone, the labor pricevariance is:a. $848 favorable.b. $848 unfavorable.c. $944 unfavorable.d. $944 favorable.

Step 1: Define Labor Price VarianceThe labor price variance represents the portion of the total…

Answered: Shimano Company makes a product that is…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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Similar questions

Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Jax Inc., which uses a volume-based cost system, produces dog houses, and has a gross profit margin of 24%. Direct materials cost $3 per unit, and direct labor costs $5 per unit. Manufacturing overhead is applied at a rate of 142% of direct labor cost. Non manufacturing costs are $8 per unit. How much does each dog house sell for? (Round your answer to 2 decimals)
Bluegill Company sells 45,000 units at $18 per unit. Fixed costs are $62,000, and income from operations is $298,000. Determine the following: Round the contribution margin ratio to two decimal places. a. Variable cost per unit b. Unit contribution margin per unit c. Contribution margin ratio
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 5 2,000 Product P8 500 4 2,000 Total direct labor-hours 4,000 The direct labor rate is $37.10 per DLH. The direct materials cost per unit is $203.60 for Product W2 and $140.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 218,576 2,000 2,000 4,000 Production orders orders 18,538 400 380 780 Order size MHs 202,886 3,880 3,680 7,560 $ 440,000 Which of the…
Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, directlabor of $310,700, overhead of $449,300 (30% is variable). Bagger calculates sales price using a markup on cost of goods sold. Required1. Calculate the markup Bagger will use.2. If a job has manufacturing cost of $43,000, what is Bagger’s price?
The total prime cost of a product was OMR6,000. The variable manufacturing overhead is Calculated based on the nomber of direct labor hours. The variable manufacturing overhead cost per hour is twice the direct fabor cost per hout The flued manufacturing overhead was OMRS.000. Assuming that ditect labor hours were 650 and that the direct labor cost was 20% of direct materials cost how much is the total manufacturing cost? Select one: Oa OMR8.000 O b. OMR13.000 OOMR18000 O d. OMR23.000 2 OMR1,000 Time left 1:19:39
Fleurant, Inc., manufactures and sells two products: Product W2 and Product P8. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product W2 400 4 1,600 Product P8 800 2 1,600 Total direct labor-hours 3,200 The direct labor rate is $31.10 per DLH. The direct materials cost per unit is $197.60 for Product W2 and $134.30 for Product P8. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product W2 Product P8 Total Labor-related DLHs $ 212,576 1,600 1,600 3,200 Production orders orders 17,938 420 320 740 Order size MHs 236,686 3,820 3,620 7,440 $ 467,200 If the company…
Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct materials $1.70 Direct labor 1.60 Variable factory overhead 2.00 Variable selling and administrative expense 1.50 Total fixed factory overhead is $55,240 per year, and total fixed selling and administrative expense is $38,480. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.
Jamison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is product cost and $420 is selling and administrative expenses. In addition, the total cost of $1,300 is made up of $740 variable cost and $560 fixed cost. The desired profit is $169 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a OMR25,900 Ob. OMR23,400 O COMR6,400 d. OMR10,900 e. OMR25,000
What is the full cost per unit?

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