The company produced 1000 units in January. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Costs Total Costs Material Costs 35000 45000 Labor Costs 55000 67500 Production Facilities cost 2500 10500 On the basis of above information, what is the estimated cost for 1600 units from the following?

The company produced 1000 units in January. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Costs Total Costs Material Costs 35000 45000 Labor Costs 55000 67500 Production Facilities cost 2500 10500 On the basis of above information, what is the estimated cost for 1600 units from the following?

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

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
Your Company uses activity-based costing and has estimated its costs for next year in the table below. How much of these costs would the company assign to activity cost pools? Plant manager's salary $97,000 Salary of advertising manager $135,000 Salary of electrician in manufacturing plant $62,000 Direct labor $75,000 Salary of janitor in headquarters building $65,000 Sales commission $27,000 Group of answer choices $359,000 $159,000 $461,000 $200,000
Little Mix Company uses the high-low method to estimate the cost function. The information for 2012 is provided below: Machine-hours Labor Costs Highest observation of cost driver 500 P15,000 6,600 Lowest observation of cost driver 220 What is the total cost for 400 hours?
The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,300 for 1,300 inspections to $3,900 for 900 inspections. Requirements 1. Use the high-low method to calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate the operating costs for 1,000 inspections. 4. Draw a graph illustrating the total cost under this plan. Label the axes, and show the costs at 900, 1,000, and 1,300 inspections.
Connell Co. collects the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 $13,500 March 9,000 $14,400 April 7,000 $12,500 Instructions: Compute the variable and fixed cost elements using the high-low method.
Factor Company estimates that producing a unit of product would require $7.80 per unit of direct materials and $23.80 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $15.60 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $45.20 per unit. Factor Company should choose to:
tonemaier Manufacturing Inc. has begun production on a new product. The primary cost of the product is direct materials with a cost of $1,050. Direct labor is estimated to be $285 per unit, overhead is estimated to be $120 per unit, and selling and administrative expenses are estimated to be $75 per unit. Stonemaier desires a profit of $480 per unit. ----------------------------- What is the required markup percentage on direct materials in order to achieve the desired profit? (provide your answer in decimal format to two decimal places --> i.e. 53.4% = 0.53)
Assume that a company manufactures numerous component parts, one of which is called Part A. The company's absorption costing system indicates that it costs $23.00 to make one unit of Part A as shown below: Direct materials $ 10.00 Direct labor 6.00 Variable overhead 2.00 Fixed overhead 5.00 Total absorption cost per unit $ 23.00 The company is trying to decide between two alternatives: Alternative 1: Continue making 80,000 units of Part A per year using its existing equipment at the unit cost shown above. The equipment used to make this part does not wear out through use and it has no resale value. Alternative 2: Replace the existing equipment with a new piece of equipment that the company would rent for $150,000 per year. The new piece of equipment would be used to make 80,000 units per year and it would reduce Part A's direct labor cost per unit by 20% and its variable overhead per unit by 30%. The direct materials cost per unit will remain constant. What is the financial advantage…
company produced 1000 units in January. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. The Variable Costs Total Costs Material Costs 35000 45000 Labor Costs 55000 67500 Production Facilities cost 2500 10500 On the basis of above information, what is the estimated cost for 1600 units from the following? Select one: O a. 178500 O b. 163750 O c. 173000 O d. 158500