Maine Temps, a large labour contractor, supplies contract labour to building-construction companies. For the year, Maine Temps has budgeted to supply 88,000 hours of contract labour. Its variablecosts are $10 per hour, and its fixed costs are $176,000. Roger Mason, the general manager, has proposed a cost-plus approach for pricing labour at full cost plus 10%.RequiredRequired1. Calculate the price per hour that Maine Temps should charge based on Mason'sproposal.2. The marketing manager supplies the following information on demand levels atdifferent prices:Price perHourDemand(Hours)13129,00015106,0001788,0001875,0002066,000Maine Temps can meet any of these demand levels. Fixed costs will remainunchanged for all the demand levels. On the basis of this additional information,calculate the price per hour that Maine Temps should charge to maximizeoperating income.3. Comment on your answers to requirements 1 and 2. Why are they the sameor different?Xosal.calculate the price. (Complete all answer boxes. Round the price per hour to two

Variable costs are costs that varies with the change in the level of output.Fixed costs are costs…

Answered: Tane Temps, a large labo actor,…

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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Al Ziyabi Company, a leading textile manufacturer is required to prepare a cost-volume-profit analysis report for the two products being produced in its company. Product A Price per unit (RO) Particulars Sales price Material Direct wages Variable expenses Fixed expenses 17 8 100% of direct wages RO 1100 The following scenarios are predicted by the Management: Scenario 1: 200 units of product A and 100 units of product B Scenario 2: 150 units of product A and 150 units of product B Scenario 3: 250 units of product A and 50 units of product B Product B Price per unit (RO) 4 100% of direct wages RO 1100 Ï
cost-plus pricing) Coyote corporation produces air purifiers. The following per unit costinformation is available: direct materials $15, direct labor $10, variable manufacturing overhead$5, and variable selling and administrative expenses $15. Fixed selling and administrativeexpenses are $100,000, and fixed manufacturing overhead is $160,000.Instructions:1. Using a 40% markup percentage on the total cost per unit and assuming 20,000 units,compute the target selling price.2. Using a 50% markup percentage on the total cost per unit and assuming 10,000 units,compute the target selling price.
Denger
Variable and Absorption Costing-Service CompanyReally BC, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Really BC provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $33.00 Fixed cost (annual) $100,000 Marketing, general and administrative Variable cost (per service contract completed) $34.00 Administrative expenses (fixed- annual cost) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable…
Lukaku's Bakery is a local bakery that operates in Kuwait. Their controller is trying to determine the company's pizzas production cost behavior. January February March April May June Required: A. Use the high-low method to estimate: • The variable costs per unit produced • The total fixed costs ( Pizzas produced (X) 5,000 3,200 4,000 5,200 4,500 3,000 3). • Express the cost behavior in an equation form (1. Total Production Costs (Y) $4,300 $2,950 $3,300 $4,490 $3,450 $2,840 B. Predict the production cost that will be incurred when 5,500 pizzas are prepared ( C. Find the number of prepared pizzas if the total cost of production is $5,090 (
Required information [The following information applies to the questions displayed below.] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,600 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($110 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $ 2,500 8,100 650 3,000 510 750 Suppose it sells each birdbath for $24. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,500 units.
WITH THE FOLLOWING BACKGROUND PREPARE COSTING: - UNIT SELLING PRICES $10,000. - UNIT RAW MATERIAL $400. - SALARY OF 2 OPERATORS: THE FIRST ONE WITH A FIXED SALARY IN PRODUCTION FOR A MONTHLY VALUE OF $500.000. AND THE SECOND WITH A TOTAL VARIABLE SALARY OF $45 PER UNIT PRODUCED. - THE PRODUCTION SUPERVISOR HAS A VARIABLE MONTHLY SALARY OF $10,000 PER UNIT OF ARTICLE PRODUCED. - A FIXED SALARY IN ADMINISTRATION OF $500,000 PER MONTH. - VARIABLE SALES SALARIES ARE 3% OF SALES. - THERE ARE PRODUCTION MACHINERY DEPRECIATION COSTS OF $20 PER UNIT PRODUCED. - THE COST OF LEASING THE PRODUCTION CENTER IS $100- PER KILO PRODUCED. - PRODUCTION UNITS ARE 20,000 UNITS. - 15,000 UNITS ARE SOLD, IT IS REQUESTED: 1. ABSORPTIVE OR TRADITIONAL METHOD COSTING. 2. DIRECT OR VARIABLE METHOD COSTING.
Corporation C is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for P133.60 per unit. Sales volume (units) 4,000 5,000 Cost of sales P383,600 P479,500 SGA costs 124,400 136,000 The best estimate of the total contribution margin when 4,300 units are sold is: (show formula and solution) b. P162,110 c. P28,380 a. P112,230 d. P45,150
A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order. Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
Classify each cost element as either fixed, variable or mixed Calculate: the variable production cost per unit and the total fixed production overhead Calculate the total variable cost per unit and the total fixed costs
Subject - account Please help me. Thankyou.
Dewey Manufacturing has been approached by a new customer with an offer to purchase 500 units of its hands-free automotive model SMAK at a price of $15,000 per unit. Existing sales would not be affected, and Dewey has sufficient capacity to produce the special order. Fixed overhead will not change if Dewey accepts the order or not. Unit cost data is: Per Unit: Direct Materials $6,000 Direct Labor $2,500 Variable OVHD $3,500 Fixed OVHD $10,000 $22,000 Normal sales price is $27,000. Assume Dewey decides to accept the order. How much will their operating income change? Should they have accepted the order

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