The following variable production costs apply to goods made by Perez Manufacturing Corporation: Item Cost per unit Materials $ 6.00 Labor 7.00 Variable overhead 0.75 Total $ 13.75 Determine the total variable production cost, assuming that Perez makes 9,000, 19,000, or 29,000 units.
Q: Rose company has a relevant range of production between 10,000 and 25,000 units. The following cost…
A: Total variable cost per unit = Direct materials + Direct labore cost + indirect labor + variable…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The variance is the difference between standard budgeted data and actual production results of…
Q: Petersen Company produces a single product with the following production and average cost…
A: Variable manufacturing cost :— It is the total variable cost incurred in the manufacturing of…
Q: Zachary Modems, Inc. makes modem cards that are used in notebook computers. The company completed…
A: a. Cost Item Depreciation on manufacturing equipment Fixed cost Product cost Direct…
Q: Shipping expenses $ 11.00 The planning budget for March was based on producing and selling 21,000…
A: Variable cost is the cost which changes with the change in the output level. It includes direct…
Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…
A: The price cost includes only the direct cost incurred for production, For example, the direct…
Q: Kesterson Corporation has provided the following information: Cost per Cost per Direct materials…
A: Variable cost needs to be incurred for each additional unit. Where's fixed cost will remain constant…
Q: yundai Company has a relevant range of production between 10,000 and 20,000 units. The following…
A: Solution Given relevant range of production =10000 to 20000 units relevant range of production…
Q: Glisan Corporation's relevant range of activity is 4,300 units to 8,300 units. When it produces and…
A: The additional expenditure incurred by manufacturing one further unit of a product or element is…
Q: Fixed manufacturing costs are $31 per unit, and variable manufacturing costs are $93 per unit.…
A: Introduction:- Absorption costing considers all costs of manufacturing as product costs irrespective…
Q: Cool Pool has these costs associated with production of 24,000 units of accessory products: direct…
A: Under the variable costing method, only variable costs are considered to be cost of production.…
Q: Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following…
A: Lets understand the meaning of variable cost. Variable cost is a cost which changes with the level…
Q: Bacon Mfg. has provided the following information. Units produced Units sold Selling price per unit…
A: Absorption costing and variable costing are two different methods used for allocating manufacturing…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Given in the question
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: When the actual number of Direct labour hours are deducted from the Standard or Budgeted Direct…
Q: Company 3. Relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000…
A: Variable cost is the cost which remains the same in unit but varies in total with the units of…
Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…
A: Prime Cost = Direct material + direct labourContribution margin = selling price - variable…
Q: Event Company produces a single product with the following characteristics: price per unit, $30.00;…
A: Sales required to earn desired or target profit is calculated by dividing the sum of total fixed…
Q: Magpie Corporation uses the total cost method of product pricing. Below is cost information for the…
A: The contribution margin is computed as the selling price per unit, minus the variable cost per unit.…
Q: [The following information applies to the questions displayed below.] Kubin Company's relevant range…
A: The manufacturing cost indicates the total cost incurred in the process of production. It includes…
Q: The following variable production costs apply to goods made by Zachary Manufacturing Corporation:…
A: Given, Variable Production cost Per Unit = 13.20 Total Variable cost = Variable product Cost Per…
Q: Dobosh Corporation has provided the following information: Direct materials Direct labor Variable…
A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: edregon Corporation has provided the following information: Cost per Unit Cost per Period…
A: Here,Selling Price per Unit$20.70Direct materials$ 6.65Direct labor$ 3.70Variable manufacturing…
Q: Suppose that Patron Company sells a product for $24. Unit costs are as follows: Direct materials…
A: 1. Variable Cost per Unit: The cost that varies with the level of production for each unit.2.…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Variable overhead efficiency variance can be determine by deducting the budgeted hours standard cost…
Q: Campbell Manufacturing Company established the following standard price and cost data:…
A: Flexible budget is the statement prepared to estimate the costs and revenues. The difference between…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The question seeks total direct labor cost that would be included in company's flexible budget for…
Q: Direct labor.. Variable overhead.. 0.1 hours 0.1 hours Originally budgeted output.. Actual output...…
A: The variance is the difference between the actual and standard production cost data. The variance…
Q: Analyzing income under absorption and variable costing Variable manufacturing costs are $126 per…
A: Introduction: Absorption costing is the process of allocating fixed overhead costs to each unit…
Q: Using this information from Planters, Inc., what is the cost per unit under variable costing? Round…
A: COST PER UNIT UNDER VARIABLE COSTING = (DIRECT MATERIAL COST + DIRECT LABOUR COST + VARIABLE…
Q: Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit.…
A: Variable Costing: The variable costing is the method of costing in which only the variable…
Q: ompany mar ires one product. Its variable manufacturing overhead is applied to production based on…
A: Direct labor Efficiency variance is used for evaluating how efficiently the direct labor hours were…
Q: Using the information below from Planters, Inc., what is the cost per un under both variable and…
A: Using absorption costing, the product cost comprises of fixed and variable cost. Using variable…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: A spending variance is the difference between the actual amount of a particular expense and the…
Q: [The following information applies to the questions displayed below.] Preble Company manufactures…
A: Variable overhead efficiency variance is the difference between actual labor hours used and standard…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Formula for material quantity variance is as follows: Material quantity variance = (Standard…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: The spending variance is calculated as difference between actual costs and flexible budget costs.…
Q: Lagle Corporation has provided the following information: Cost per Cost per Unit Period Direct…
A: Variable cost refers to the expense incurred on the quantity of desired goods and services produced…
Q: Rose Company has a relevant range of production between 9,000 and 25,000 units. The following cost…
A: Cost of production refers to the total cost which is incurred for the manufacturing of a product…
Q: [The following information applies to the questions displayed below.] Preble Company manufactures…
A: Flexible budget is prepared on standard rates for the actual output produced. Organizations prepares…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Material Variance: A standard cost is a predetermined target cost that provides the benchmark…
Q: Preble Company manufactures one product Its variable manufacturing overhead is applied to production…
A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
The following variable production costs apply to goods made by Perez Manufacturing Corporation:
Item | Cost per unit | ||||
Materials | $ | 6.00 | |||
Labor | 7.00 | ||||
Variable overhead | 0.75 | ||||
Total | $ | 13.75 | |||
Determine the total variable production cost, assuming that Perez makes 9,000, 19,000, or 29,000 units.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Bluegill Company sells 8,900 units at $320 per unit. Fixed costs are $142,400, and income from operations is $1,566,400. Determine the following: a. Variable cost per unitb. Unit contribution marginc. Contribution margin ratioPreble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $ 280,000 $ 260,000 per Unit Sold Advertising Sales salaries and commissions $ 20.00 $ 11.00 Shipping expenses The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct-laborers worked 63,000 hours at a rate of $13.00 per hour. c. Total variable…Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
- Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter Required: $ 60 1,500,000 4,500,000 9 12 10 6 500,000 units Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units 600,000 unitsPreble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per hour 21.00 Total standard variable cost per unit $ 122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 330,000 Sales salaries and commissions $ 360,000 $ 25.00 Shipping expenses $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. Direct-laborers worked 68,000 hours at a rate of…Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at $10.00 per pound $ 50.00 Direct labor: 3 hours at $17 per hour 51.00 Variable overhead: 3 hours at $7 per hour 21.00 Total standard variable cost per unit $ 122.00 The company also established the following cost formulas for its selling expenses: Fixed Cost per Month Variable Cost per Unit Sold Advertising $ 330,000 Sales salaries and commissions $ 360,000 $ 25.00 Shipping expenses $ 16.00 The planning budget for March was based on producing and selling 24,000 units. However, during March the company actually produced and sold 30,600 units and incurred the following costs: Purchased 170,000 pounds of raw materials at a cost of $9.00 per pound. All of this material was used in production. Direct-laborers worked 68,000 hours at a rate of…
- Shaw Supply Company sells a single product and has the following average costs at a sales level of 15,000 units: Variable cost per unit $2.45 Fixed cost per unit 4.75 Total cost per unit $7.20 Determine the following amount at a sales level of 18,000 units: a. Total variable cost b. Total fixed cost c. Variable Cost per UnitPreble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $ 280,000 $ 260,000 per Unit Sold Advertising $ 20.00 $ 11.00 Sales salaries and commissions Shipping expenses The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct-laborers worked 63,000 hours at a rate of $13.00 per hour. c. Total variable…Fixed manufacturing costs are $40 per unit, and variable manufacturing costs are $120 per unit. Production was 113,000 units, while sales were 108,480 units. a. Determine whether variable costing operating income is less than or greater than absorption costing operating income. b. Determine the difference in variable costing and absorption costing operating income.
- Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 55.00 Direct material: 5 pounds at $11.00 per pound Direct labor: 3 hours at $12 per hour Variable overhead: 3 hours at $7 per hour 36.00 21.00 Total standard variable cost per unit $112.00 The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per Month $ 280,000 $ 260,000 per Unit Sold Advertising Sales salaries and commissions $ 20.00 $ 11.00 Shipping expenses The planning budget for March was based on producing and selling 21,000 units. However, during March the company actually produced and sold 26,600 units and incurred the following costs: a. Purchased 154,000 pounds of raw materials at a cost of $9.50 per pound. All of this material was used in production. b. Direct-laborers worked 63,000 hours at a rate of $13.00 per hour. c. Total variable…A standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Amount per Unit $ 7.60 $ 4.60 $ 2.10 $ 5.60 $ 4.10 $ 3.10 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 19,000 units are produced,…