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: Total Direct Material Cost that would appear on the shipping department's flexible budget 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:

Total Direct Material Cost that would appear on the shipping department's flexible budget

Saving in direct material cost due to this sustainability improvement

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MCQ

A cosmetic manufacturer provides the following production data for the year: Work-in-process (WIP) inventory, January 1: 15 units Units started during the year: 30,000 units Units completed and transferred out: 22,500 units WIP Inventory, December 31: 7,500 units Direct materials cost: $360,000 Direct labor cost: $700,000 Manufacturing overhead: $400,000 The units in the ending WIP inventory were 70% complete for materials and 50% complete for conversion costs. What is the cost per equivalent unit for materials? a) $14.50 b) $13.85 c) $12.00 d) $12.97

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:

Total Direct Material Cost that would appear on the shipping department's flexible budget

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:

Total Direct Material Cost that would appear on the shipping department's flexible budget

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