Wadsworth Industries manufactures small appliances and uses an activity based costing system. Information from its system for the year for all products follows:Total cost$457,000$296,500Total activityActivity cost poolAssemblyInspectionPackaging21,0007,500machine hoursinspection hoursorder$18,7001,600Wadsworth makes 675 of its stand mixers a year, which requires a total of 23 machine hours, 7 inspection hours, and 9 orders. The stand mixer requires $12.00 in direct materials per unit and $12.50 in direct labor per unit. The stand mixer sells for $130 per unit.What is the profit margin in total for the stand mixer? (Do not round intermediary calculations and round your final answer to the nearest cent.)O A. $24.50O B. $70,330.06O C. $16,537.50O D. $87,606.90

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Answered: Wadsworth Industries manufactures small…

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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Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips @ $5.00) Direct labor (0.25 hr. @ $8.00) Total prime cost $15.00 2.00 $17.00 During the first month of the year, the Boise plant produced 39,000 belts. Actual leather purchased was 130,000 strips at $3.40 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 34,000 hours at $14.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 39,000 leather belts. Materials $ 397,800 X Labor $ 493,000 X 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials -397,785 X Labor -492,998 X Favorable Unfavorable 3. Conceptual Connection: Would you consider these variances material with a need for investigation? Yes
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Evergreen Inc. expects to manufacture 4,000 refrigerators during the last quarter of the current year. The company uses activity-based costing to determine the product costs. The manufacturing activities and associated information is provided in the table below. Manufacturing Activities and Associated Information Overhead activities Overhead costs assigned ($) Number of cost driver Material handling 120,000 240,000 Parts Devising 400,000 50,000 Machine hours (MH) Assembling 168,000 240,000 Parts Finishing 240,000 4,000 Finishing hours (FH) Each refrigerator uses 30 parts and requires 5 machine hours and 1 finishing hour during the production process. The direct material costs and direct labor costs required for each refrigerator is $500 and $90, respectively. What would be the overhead rate per finishing hour (FH)? (Round your answer to two decimal points) Group of answer choices $8.00 per FH $0.70 per FH $60.00 per FH $0.50 per FH

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