The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials Direct labor Variable overhead $ 350,000 267,000 238,000 Production was 160,000 units. Fixed manufacturing overhead was $837,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes, direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Varlable manufacturing overhead per unit is expected to remain the same. Required: a. Prepare a cost estimate for a volume level of 128,000 units of product this year. b. Determine the costs per unit for last year and for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a cost estimate for a volume level of 128,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year's Cost Direct materials Direct labor Variable overhead Fixed overhead Total costs

The accounting records for Portland Products report the following manufacturing costs for the past year. Direct materials Direct labor Variable overhead $ 350,000 267,000 238,000 Production was 160,000 units. Fixed manufacturing overhead was $837,000. For the coming year, costs are expected to increase as follows: direct materials costs by 20 percent, excluding any effect of volume changes, direct labor by 4 percent; and fixed manufacturing overhead by 10 percent. Varlable manufacturing overhead per unit is expected to remain the same. Required: a. Prepare a cost estimate for a volume level of 128,000 units of product this year. b. Determine the costs per unit for last year and for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a cost estimate for a volume level of 128,000 units of product this year. (Do not round intermediate calculations.) Cost Item This Year's Cost Direct materials Direct labor Variable overhead Fixed overhead Total costs

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The manufacturing costs of Bartee-Allen Enterprises for the second three months of the yearfollow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
DG Co. has recorded the following total costs during the last five years.Year Output Volume(units) Totalcost.3($)2000 65,000 145,000 2001 80,000 162,000 2002 90,000 170,000 2003 60,000 140,000 2004 75,000 160,000 Calculate the total cost that should be expected in 2005 if output is 85,000 units.
Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 65,000 to 105,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 95,000 units during the year at a selling price of $9.36 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Total cost Variable cost Fixed cost Total cost Cost per unit: Variable cost Fixed cost Total cost per unit $ $ $ 65,000 Units Produced and Sold 85,000 214,500 430,000 644,500 $ 0.00 $ 43,000 43,000 $ 0.00 $ 105,000 43,000 43,000 0.00
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be the total cost in August if the company produces 415 units? Periods Total Cost 21,410 No.of Units 210 January February 22.140 240 22,875 23,295 23,620 23,830 24,350 March 275 295 April May 310 June 320 July 350 Select one: O a. 25715 O b. 25050 c. 26250 O d. 23360
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $19 Direct labor — 13 Factory overhead $105,800 10 Selling expenses: Sales salaries and commissions 22,000 4 Advertising 7,400 — Travel 1,700 — Miscellaneous selling expense 1,800 4 Administrative expenses: Office and officers' salaries 21,500 — Supplies 2,600…
Assume that the cost formula for one of a company’s mixed expenses is $10,000 + $4.00 per unit. The company’s planned level of activity was 2,000 units and its actual level of activity was 2,200 units. The actual amount of this expense was $18,110. The spending variance for this expense is:
Your company manufactures 40,000 units of a product over a period of time. The variable costs were SEK 240 each and the fixed costs amounted to SEK 8,000,000. the utilization rate was 125% during the period.a) Calculate the product's unit cost according to division calculation. Response:b) Calculate the unit cost of the product according to the normal calculation (normal year method).
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials $26 Direct labor 17 Factory overhead $114,300 13 Selling expenses: Sales salaries and commissions 23,700 6 Advertising 8,000 Travel 1,800 Miscellaneous selling expense 2,000 5 Administrative expenses: Office and officers' salaries 23,200 Supplies 2,900 2 Miscellaneous administrative expense 2,660 3 Total $178,560 $72 It is…
The manufacturing costs of Mocha Industries for three months of the year are as follows: Month Total Cost Production April $79,092 1,440 units May 80,136 2,020 units June 81,756 2,920 units a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.fill in the blank 1 of 1$ per unit b. Using the high-low method, determine the total fixed costs.
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: EstimatedFixed Cost Estimated Variable Cost(per unit sold) Production costs: Direct materials — $28 Direct labor — 19 Factory overhead $495,200 14 Selling expenses: Sales salaries and commissions 102,900 6 Advertising 34,800 — Travel 7,700 — Miscellaneous selling expense 8,500 6 Administrative expenses: Office and officers' salaries 100,600 — Supplies 12,400…
Contribution margin, break-even sales, cost-volume-profit chart, marginof safety, and operating leverageBelmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for theyear is therefore assumed to be equal to the cost of goods sold. With thisin mind, the various department heads were asked to submit estimatesof the costs for their departments during the year. A summary report ofthese estimates is as follows: (attached) It is expected that 12,000 units will be sold at a price of $240 a unit.Maximum sales within the relevant range are 18,000 units.Instructions 1. Prepare an estimated income statement for 20Y7.2. What is the expected contribution margin ratio?3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-evensales.5. What is the expected margin of safety in dollars and as apercentage of sales?6. Determine the operating leverage.
Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the standard hours allowed per unit of product.