Steeler Corporation Is Planning To Sell100,000 Units For $2.00 Per Unit And WillBreak Even At This Level Of Sales. FixedExpenses Will Be $75,000. What Are TheCompany's Variable Expenses Per Unit?A. $0.75B. $1.25C. $1.10D. $1.00The Use Of A Predetermined OverheadRate In A Job-Order Cost System MakesIt Possible To Compute The Total CostOf A Job Before Production Is Begun.True Of False.

Question: 1Fixed Expenses:Fixed expenses are costs that remain constant regardless of the level of…

Answered: Steeler Corporation Is Planning To Sell…

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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Colonels uses a traditional cost system and estimates next year's overhead will be $651,000, with the estimated cost driver of 217,000 direct labor hours. It manufactures three products and estimates the following costs: Small Medium Large 31,000 10,000 3,000 $8 $8 6 11 Units Direct Material Cost Direct Labor Hours per Unit If the labor rate is $30 per hour, what is the per-unit cost of each product? Small Medium Cost per unit $4 4 Large
The following wages costs were incurred for the manufacturing of Espresso pods at Nespresso: Labor Wages cost Hours $ 2,500 55,000 2,800 59,000 3,000 60,000 4,200 67,000 64,000 62,000 Month March April May June July 4,500 August 3,100 The controller wishes to apply the high-low method in order to estimate the cost behavior for the company. Which levels should he choose for his analyses? a. None of the choices. O b. March and June. c. March and July. d. April and July.
The Jaguar Company, which manufactures electrical switches, uses a standard costing system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below: Variable MOH (5 hours @ $12 per DMfgL hour) Fixed MOH (5 hours @ $15* per DMfgL hour) Total MOH per switch *Based on a capacity of 200,000 DMfgL hours per month The following information is available for the month of October: > 46,000 switches were produced, although 40,000 switches were scheduled to be produced. > 225,000 DMfgL hours were worked at a total cost of $5,625,000. Actual variable MOH costs were $2,750,000. Actual fixed MOH costs were $3,050,000. $ 60 75 $135 1. Compute the variable MOH spending, efficiency, and flexible-budget variances, and the allocated variable MOH costs.
The normal production capacity of a company is 10,000 units per month. On this basis, the fixed costs are assigned, which, in unit terms, amount to:General and administrative expenses $25.00Selling expenses $5.00Unit variable costs are fully proportional to production and sales, and amount to:Direct Labor $18.00Materials $14.50Manufacturing overhead $8.00 The price of the product in the market is $90 and the commissions to the sellers correspond to 5% of the sales. The company is studying the possibility of closing for a time that could reach 2 years, due to a period of depression that is estimated to affect the industry in that period, a fact that would reduce its activity levels to 20% of its normal capacity. If it closes, fixed charges could be reduced by 30%, and if it continues to operate, the reduction would only reach 15%. What would be the differential savings of opting for the best alternative?
For many years, Yotsuya Company has used a manufacturing overhead rate based on direct labor hours. A new plant accountant has suggested that the company may be able to assign overhead costs to products more accurately by using an activity-based costing system. The accountant explains that by creating an overhead rate for each production activity that causes overhead costs, the resulting product costs will reflect an accurate measure of overhead cost. The direct material cost is P120 per unit. The budgeted hours is 8,030 direct labor hours. The accountant has identified activity centers to which overhead costs are assigned. The cost pool amounts for theses centers and their selected activity drivers for 2019: Activity Centers Costs Activity Drivers Materials handling P60,000 1,200 times handled Scheduling and setups 80,000 400 setups Design section 10,750 100 changes No. of parts 50,000 500 parts P200,750 The company’s products…
Additional Information: a. Sales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. Direct material cost is a variables cost and other production overheads are fixed cost. C. Direct labour consists of machine operatives' wages and the total wages behave as a step cost: Output Up to 7,500 units Over 7,501 and up to 11,000 units Over 11,001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 1.200 fils per unit. Total Direct Labour cost BD 4,850 BD 8,563 BD 10,484 Required the budgeted direct labor cost under the output of 11300 unit is:
Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $13 $8 Demand for "W" is 216 units and "H" is 342 units If Costner has only 177 labor hours available, how many units of "W" should be manufactured? Round your final answer to the nearest whole unit.
Lambeth Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $ 4.90 $ 2.95 $ 1.25 $ 1.00 $ 0.40 Cost per Period $ 8,000 Variable administrative expense Fixed selling and administrative expense $ 4,000 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Consider the following production and cost data for two products, X and Y, manufactured by Company. Product X Product Y Sales price per unit $52 $40 Direct materials cost per unit $18 $8 Direct labor hours per unit 1.5 1.0 Machine hours per unit 3.0 2.0 The labor rate is $10 per hour. Variable overhead is $2 per direct labor hour. The company can hire sufficient labor for any production level. The company has 15,000 machine hours available each period. There is unlimited demand for each product. Assuming a company has achieved a reasonable level of cost accuracy, what is the most important determinant of whether cost information should be even more accurate?
Current Attempt in Progress In Robert's manufacturing plant, the estimated monthly overhead cost function is provided in the Y = m(X) + b format: Total monthly overhead costs = $1.15(number of machine hours) + $6,500. Given this cost function, specify (a) the variable cost, (b) the fixed cost, (c) the cost driver, and (d) whether these monthly overhead costs are considered variable, fixed, or mixed in total. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost Fixed cost Cost driver Cost type $ $
Domestic
Lagle Corporation has provided the following information: Cost per Cost per Unit Period Direct materials $5.25 Direct labor $3.90 $1.40 Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense $7,200 $1.80 $0.30 $6,600 Fixed selling and administrative expense If 4,500 units are sold, the variable cost per unit sold is closest to:

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