-Based Costing (ABC)pools and drivers has been developed:lines based on their relative shares of direct labor hours (DLH). Thecompany works about 100,000 DLH per month. The company is1. Tower Company incurs about P860,000 in manufacturing overheaddriven by other activities. The following information regarding costcosts each month which had been allocated to individual productder 8287MULTIPLE CHOICES-COMPUTATIONALOststCocerned that using DLH is inappropriate because some costs areAmount inAтount ofActivityCost DriverРolDirect labor hoursNumber of batchesEngineering/ design changesP520,000280,00060,000100,000500120Total overhead costsP860,000The following data regarding two product lines of the company arepresented:Product ABProduct CD1,600200Direct labor hours412Number of batches24Engineering/design changesProduct AB are produced in large batches, while Product CD are asspecialty line that only a few customers buy.what is the overhead to be allocated to each product line using DLHas the only cost driver?Product AB& P13,760h P13,760e. P14,000d. P14,760Product CDP1,270P1,720P7,120P2,170 2. Using the data in No. 1, the overhead to be allocated to each product288Chapterline using the Activity-Based Costing (ABC) is:Product CDP14,760P14,760P19,760P14,670Product ABa. P11,560b. P10,760c. P11,560d. P10,760

Direct labour cost rate =P520,000 /100,000 = P5.2 Batch…

Answered: TIONAL pools and drivers has been…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $15 6 IN MING 3 1. 2. 3. 5 Financial advantage Financial (disadvantage) 2 6 $ 37 Total $ 510,000 204,000 The Rets normally sell for $42 each. Fixed manufacturing overhead is $170,000 per year within the range of 24,000 through 34,000 Rets per year. 102,000 170,000 68,000 204,000 $ 1,258,000 Required: 1. Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling…
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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
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 17,500 $ 229,022 Slowest month (December) 10,200 $ 155,000 If Macon expects to use 13,500 machine hours next month, what are the estimated direct labor costs?
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year Machine Hours 18,000 6,000 Busiest month (June) Slowest month (December) What are the direct labor costs per machine hour? Multiple Choice $21.50 $17.25 Direct Labor Costs $285,000 $129,000
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 24,000 $ 282,400 Slowest month (December) 18,000 $ 220,000 If Macon expects to use 20,000 machine hours next month, what are the estimated direct labor costs?
Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs: Direct material ______$5/kg Direct labor_________$10/hour Total Manufacturing overhead __________________$30000 The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost
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The selected answer is incorrect
Consider the following information for Presidio Incorporated's most recent year of operations. Number of units produced Number of units sold Sales price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per unit ($282,960 2,400 units) Total variable selling expenses ($14 per unit sold) Total fixed general and administrative expenses Complete this question by entering your answers in the tabs below. Required: 2-a. Complete a full absorption costing income statement for Presidio. Assume there was no beginning inventory. 2-b. Complete a contribution margin income statement for Presidio. Assume there was no beginning inventory. 3. Compute the difference in profit between full absorption costing and variable costing. Req 2A Reg 2B 2,400 1,500 $ 630.00 65.00 95.00 45.00 117.90 Req 3 Gross Margin Less: Non-Manufacturing Expenses 21,000.00 74,000.00 Complete a full absorption costing income statement for Presidio.…
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.
Haresh

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