Valley canoes solution general accounting question +Valley Canoes LLC manufactures premium canoes. Below is the cost data for theiroperations in 2024:Cost CategoryDirect MaterialsDirect LaborFixed Manufacturing OverheadAmount ($)95,00072,00058,000Variable Manufacturing Overhead 48,000Fixed Selling ExpensesVariable Selling ExpensesFixed Administrative Expenses45,00032,00051,000Variable Administrative Expenses 28,000⚫ Calculate the total product costs under variable costingCalculate the total period costs under variable costingWhat percentage of total costs are product costs?

Step 1: Definition of Variable CostingVariable costing is a costing method where only variable…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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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?
This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the companys utility costs as an equation where X represents number of tables produced. Predict the utility costs if 800 tables are produced. Predict the utility costs if 600 tables are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between number of tables produced and utility expenses.
Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 20x1 (actual price per unit of the activity driver is assumed to be equal to the standard price): Required: 1. Prepare a cost report for the year ending 20x1 that shows value-added costs, non-value-added costs, and total costs for each activity. 2. Explain why expediting products and storing goods are non-value-added activities. 3. What if receiving cost is a step-fixed cost with each step being 1,500 orders whereas assembly cost is a variable cost? What is the implication for reducing the cost of waste for each activity?
This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the factory utility expenses as an equation where x represents number of chairs produced. Predict the utility costs if 900 chairs are produced. Predict the utility costs if 750 chairs are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between number of chairs processed and utility expenses.
Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method.
Following is the revenue and cost data for Metlock Ltd. in the manufacturing of luxury shower curtains for the year ended December 31, 2022: NewsVariable manufacturing costs $34 per curtainVariable selling and administrative expenses $8 per curtain Fixed manufacturing overhead $53,900Fixed selling and administrative expenses $184,800 Units produced and sold 7, 700Selling price $84 per curtain. Prepare an income statement using absorption costing. Prepare an income statement using variable costing.
Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their financial reports. The following information is for Quarter 4, 2021 and Quarter 1, 2022. Calculate unit product costs for Quarters 4 and 1 for Variable and Absorption Costing. Prepare an income statement for each method, then show why there is a difference between the two. Selling price per unit $ 150 Quarter 4 Quarter 1 Variable costs per unit Units in beginning inventory - 1,750 Direct materials $ 45.00 Production (in units) 15,000 10,750 Direct labor $ 20.00 Sales (in units) 13,250 12,500 Variable overhead $ 15.00 Ending inventory 1,750 - Variable S&A $ 10.00 Fixed Costs in total per quarter Fixed manufacturing overhead…
Kimball Company has developed the following cost formulas: Material usage: Ym = $80X; r = 0.95 Labor usage (direct): Yl = $21X; r = 0.96 Overhead activity: Yo = $358,000 + $100X; r = 0.72 Selling activity: Ys = $46,000 + $14X; r = 0.93 where X = Direct labor hours The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced equals units sold). Each unit uses one direct labor hour for production. The president of Kimball Company has recently implemented a policy that any special orders will be accepted if they cover the costs that the orders cause. This policy was implemented because Kimball's industry is in a recession and the company is producing well below capacity (and expects to continue doing so for the coming year). The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and avoid layoffs. Also, any orders above variable costs will increase…
JART manufactures and sells underwater markers. Its contribution margin income statement follows Contribution Hargin Income Statement Per Unit $ 6.00 For Year Ended December 31 Sales (590,000 units) Variable costs Direct materials Direct labor Varlable overhead Contribution margin Fixed costs Fixed overhead Annual Total $3,540,000 1.63 0.47 961,700 277,300 295,000 2,006,000 0.50 3.40 0.20 118,000 Fixed general and administrative 0.15 88,500 Income $ 3.05 $ 1,799,500 A potential customer offers to buy 69,000 units for $3.00 each. These sales would not affect the company's sales through its normal channels. Detals about the special offer follow. • Direct materials cost per unit and variable overhead cost per unit would not change • Direct labor cost per unit would be $0.50 because the offer would require overtime pay Accepting the offer would require incremental fixed general and administrative costs of $6,900. Accepting the offer would require no incremental fixed overhead costs.…
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What is the net income under absorption costing get solution
Shelby Enterprises, LLC has the following costs for product Z: Type of Cost Amount Unit Direct Materials $43 per unit Direct Labor $61 per unit Variable manufacturing overhead $7 per unit Fixed manufacturing overhead $4,800 per year 1. Calculate the unit product cost using absorption costing when production is 250 units, 500 units, 2,500 units. Round your answer to the nearest cent.

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