Homework Help is Here – Start Your Trial Now!
Business
Accounting
The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Days of of Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 Production Production. per Period 362 310 310 310 22 16 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)

The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Days of of Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 Production Production. per Period 362 310 310 310 22 16 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decima places.) What is the total cost per unit (box of wine) when normal capacity is used? O $3.45 O $5.81 $6.39 O $7.54
Transcribed Image Text:Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decima places.) What is the total cost per unit (box of wine) when normal capacity is used? O $3.45 O $5.81 $6.39 O $7.54
The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 per Period 362 Production Production 310 Days of 310 310 of 22 16. 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)
Transcribed Image Text:The Sanderson Sisters manufacture high-quality 5-liter boxes of wine which it sells for $14 per box. Below is some information related to The Sanderson Sisters' capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Period Manufacturing Overhead per $5,000,000 $5,000,000 $5,000,000 $5,000,000 per Period 362 Production Production 310 Days of 310 310 of 22 16. 16 Hours 16 Boxes per Day per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of wine, with 15,000 remaining in ending inventory at 12/31/19. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $5,000,000, the same as budgeted. (Note: Round interim calculations to 2 decimal places)
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Decision to Sell before or after additional processing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS