- Standard Cost : - It is the estimated cost of producing a goods or services under the normal conditions in the business. In this particular question, the Company has determined the shipping cost as $10 per shipment. So, $10 per shipment is the standard cost of the Company. Formula of Standard Cost: Standard Rate per Unit*Number of Unit Flexible Budget: It is the budget which is adjusted according to the change in the volume of activity. In this particular question, the Company has determined the shipping cost as $ 10 per shipment. So, here shipment is the activity and if there is a change in the volume of shipment, the shipping cost will be affected accordingly. To calculate : - (a) Total Direct Material Cost that would appear on the shipping department’s flexible budget (b) Saving in direct material cost due to this sustainability improvement

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 22QS

To determine

Introduction: -

Standard Cost: - It is the estimated cost of producing a goods or services under the normal conditions in the business. In this particular question, the Company has determined the shipping cost as $10 per shipment. So, $10 per shipment is the standard cost of the Company.

Formula of Standard Cost: Standard Rate per Unit*Number of Unit

Flexible Budget: It is the budget which is adjusted according to the change in the volume of activity. In this particular question, the Company has determined the shipping cost as $ 10 per shipment. So, here shipment is the activity and if there is a change in the volume of shipment, the shipping cost will be affected accordingly.

To calculate: -

(a) Total Direct Material Cost that would appear on the shipping department’s flexible budget

(b) Saving in direct material cost due to this sustainability improvement

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Please explain the solution to this financial accounting problem with accurate principles.

Kodak Inc. sells its product for $95 per unit. During 2023, it produced 85,000 units and sold 68,000 units (there was no beginning inventory). Costs per unit are: direct materials $22, direct labor $19, and variable overhead $6. Fixed costs are: $1,275,000 manufacturing overhead, and $127,000 selling and administrative expenses. The per-unit manufacturing cost under absorption costing is__. Help

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Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 22QS

To determine

Introduction: -

Standard Cost: - It is the estimated cost of producing a goods or services under the normal conditions in the business. In this particular question, the Company has determined the shipping cost as $10 per shipment. So, $10 per shipment is the standard cost of the Company.

Formula of Standard Cost: Standard Rate per Unit*Number of Unit

Flexible Budget: It is the budget which is adjusted according to the change in the volume of activity. In this particular question, the Company has determined the shipping cost as $ 10 per shipment. So, here shipment is the activity and if there is a change in the volume of shipment, the shipping cost will be affected accordingly.

To calculate: -

(a) Total Direct Material Cost that would appear on the shipping department’s flexible budget

(b) Saving in direct material cost due to this sustainability improvement

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 22QS

To determine

Introduction: -

Standard Cost: - It is the estimated cost of producing a goods or services under the normal conditions in the business. In this particular question, the Company has determined the shipping cost as $10 per shipment. So, $10 per shipment is the standard cost of the Company.

Formula of Standard Cost: Standard Rate per Unit*Number of Unit

Flexible Budget: It is the budget which is adjusted according to the change in the volume of activity. In this particular question, the Company has determined the shipping cost as $ 10 per shipment. So, here shipment is the activity and if there is a change in the volume of shipment, the shipping cost will be affected accordingly.

To calculate: -

(a) Total Direct Material Cost that would appear on the shipping department’s flexible budget

(b) Saving in direct material cost due to this sustainability improvement

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem 22QS

To determine