The Toronto Symphony Hall offers two types of seats: Standard seats and VIP seats. The fixed costs sum up to $60,000. Below is further relevant information: Standard Seats Sales Mix in Units Selling Price Unit CM VIP Seats 85% $18 CM Ratio $7 38.9% The total manufacturing costs incurred for the year are $250,000. The overhead cost was 50% of the direct labor cost, and the direct materials cost was $30,000. What was the direct labor cost? a. $146,667 b. $135,000 c. $120,000 d. None of the above

The Toronto Symphony Hall offers two types of seats: Standard seats and VIP seats. The fixed costs sum up to $60,000. Below is further relevant information: Standard Seats Sales Mix in Units Selling Price Unit CM VIP Seats 85% $18 CM Ratio $7 38.9% The total manufacturing costs incurred for the year are $250,000. The overhead cost was 50% of the direct labor cost, and the direct materials cost was $30,000. What was the direct labor cost? a. $146,667 b. $135,000 c. $120,000 d. None of the above

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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Mark Corp. makes a chair with the following standard costs for direct materials and direct labor: Direct materials: 2 meters @ P3.25 per meter P6.50 Direct labor: 0.40 hours @ P12 per hour P4.80 During the month of December, 25,000 units of chairs were produced. The costs related to the production of these chairs were as follows: Direct materials purchased 60,000 meters @ P3.15 per meter Direct materials used in the production 52,500 meters Direct labor 9,875 hours @ P12.20 per hour The standard cost variances for direct materials and direct labor are as follows: Labor Efficiency Variance 124 hours @ P12 per hour 1,500 F Labor Rate Variance 9,875 hours @ PO.20 per hour 1,975 U Material Price Variance 60,000 meters @ PO.10 per meter 6,000 F Material Quantity Variance 2,500 meters @ P3.25 per meter 8,125 U Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easelswere made, and 31,000 were sold for $52 each. The actual unit cost is as follows: Direct materials $14.70Direct labor 5.80Variable overhead 3.25Fixed overhead 15.25Total unit cost $39.00 The selling expenses consisted of a commission of $1.30 per unit sold and advertising co-payments totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was$132,600 for 3,400 easels.Required:1. Calculate the number and the dollar value of easels in ending finished goods inventory.2. Prepare a cost of goods sold statement.3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
Edge Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labor dollars. For 2009, Edge Manufacturing compiled the following data for the two products: Deluxe Standard Sales units $50,000 $400,000 Sales price per unit $650.00 $475.00 Direct material and labor costs per $180.00 $130.00 unit Manufacturing support costs per unit $ 80.00 $120.00 Last year, Edge Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 20X5: Cost Driver Activity Setups Machine- # of machine Cost Total Deluxe Standard # of setups $ 500,000 $44,000,000 | 600,000 300,000 |300,000 500 400 100 related hours Packing # of shipments $ 5,000,000 | 250,000 |50,000 200,000 N.B.: # = number Required:…
Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost Cost Category per 100 Two-Liter Bottles Direct labor $1.20 Direct materials 6.50 Factory overhead 1.80 Total $9.50 At the beginning of March, Salisbury's management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: Actual Cost for the Cost Category Month Ended March 31 Direct labor $6,550 Direct materials 33,800 Factory overhead 9,100 Total $49,450 a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at Planned Volume (500,000 Bottles) Check My Work Multiply the standard cost per unit times the units planned…
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Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Five Card Draw manufactures and sells 10,000 units of Aces, which retails for $200, and 8,000 units of Kings, which retails for $170. The direct materials cost is $20 per unit of Aces and $15 per unit of Kings. The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. It takes 4 direct labor hours to manufacture Aces and 3 hours for Kings. The total estimated overhead is $128,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. How much is the gross profit per unit for Aces and Kings? B. What is the total gross profit for the year?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.