The packaging activity at Summit Manufacturing has an expected cost of $150,000. Expected direct labor hours are 25,000, and the expected number of packages is 50,000. The best activity rate for packaging is _. A. $3 per package B. $6 per labor hour C. $2 per package D. $6 per package E. none of the above

The packaging activity at Summit Manufacturing has an expected cost of $150,000. Expected direct labor hours are 25,000, and the expected number of packages is 50,000. The best activity rate for packaging is _. A. $3 per package B. $6 per labor hour C. $2 per package D. $6 per package E. none of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...

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Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
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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?
Event Company produces a single product with the following characteristics: price per unit, $30.00; variable material cost per unit, $9.20; variable labor cost per unit, $4.40; variable overhead cost per unit, $2.20; and fixed overhead cost per unit, $3.00. Event Company's manufacturing fixed costs are $5 million, and selling, general, and administration fixed costs are $1.5 million. What dollar sales are required for Event Company to earn a target profit of $600,000?
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[The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 8.30 $ 5.30 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 25,250 units? b. What is the total indirect manufacturing cost incurred to make 25,250 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 25,250 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the…
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Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor 4.20 Variable manufacturing overhead 1.70 Fixed manufacturing overhead 5.20 Fixed selling expense 3.70 Fixed administrative expense $ 2.70 Sales commissions $ 1.20 Variable administrative expense $ 0.70 Required: 1. what is the total direct manufacturing cost incurred to make 12,500 units? 2 what is the total indirect manufacturing cost incurred to make 12,500 units? 3.Assume the cost object is the Manufacturing dept and its total output is $12,500 units. How much manufacturing cost is direct traceable to the manufacturing dept? and How much manufacturing cost is indirect traceable to the manufacturing dept? 4. Assume the cost object is the company's various sales. Assume the company spent $33,750 of its total fixed selling expense on advertising and the remainder of the…
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Seasmoke manufacturing has 12,100 labor hrs. available for producing A and B. Consider the following: Product A Product B required labor time per unit (hours) 4 3 max demand (units) 2500 3000 Contribution margin per unit $16.00 $13.50 If the comapny followes proper managerial accounting practices in terms of setting a production schedule, how many units of Product A should it produce?