Model AModel BModel CSelling price$40$50$55Direct materials costs$5$5$5Direct labor costs ($15 per labor hour)$15$15$30Variable support costs ($3 per machine hour)$3$6$9Fixed support costs$10$10$10

Step 1: Step 2: Step 3: Step 4:

Answered: Model A Model B Model C Selling price…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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Cost pool $58,200 $88,500 Total cost in cost pool O $7,200 pool 1 pool 2 pool 3 Compute allocated capacity costs for product Alpha. $18,000 $7,500 $63,000 $45,000 not enough information need to know the total number of cost driver units Number of cost driver units product Alpha 20 20 30 -- product Beta 30 5 12
Question z Answer saved Cost Formulas Marked out of 1.45 Material A Material B Material C Cutting labor Shaping labor Finishing labor Hag question $25/pound $100/gallon $45/hour $55/hour $60/ hour Saved to this PC Shorewood Manufacturing produces a single product requiring the following directmaterial and direct labor: Cost per Unit of Input Required Amount per Unit of Product $40 / pound 10 ounces Homework 6 8 ounces 0.3 gallon 30 minutes 15 minutes 45 minutes Variable Manufacturing overhead consists of indirect material, $0.60 per unit of product; indirect labor, $1,000 per month plus $0.70 per unit of product; factory maintenance, $14,000 per year plus $0.55 per unit of product; factory depreciation, $15,000 per year; and annual factory property taxes, $8,000. Selling and administrative expenses include the salaries of a sales manager, $30,000 per year; an office manager, $18,000 per year; and two salespersons, each of whom is paid a base salary of $11,000 per year and a commission…
stion 2: Allocating costs using ABC have an ABC system with three pools pol 1 pol 2 pol 3 total cost in the pool $80,000 $60,000 $40,000 $ bol 1 per DL$ bol 2 per setup pol 3 per hour total allocated costs for each product product A 4,000 DL$ pute the activity rates and the allocated costs for products A and B. activity rate allocated costs for product A $ 20 setups 50 hours $ $ $ +A number of cost driver units product B 6,000 DL$ 30 setups 150 hours $ allocated costs for product B $ LA $ $ tA total 10,000 DL$ 50 setups 200 hours $
Per Unit Total\\nDirect materials $ 5.00 \\nDirect labor 2.00 \\nSupervision 1.90 $ 123,500\\nDepreciation 1.40 $ 91,000\\nVariable manufacturing overhead 0.60 \\nRent 0.60 $ 39,000\\nTotal product cost $ 11.50 \\n \\n\\nIf Futura decides to make the starters, a supervisor would have to be hired (at a salary of $123,500) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $81,000 per period. Depreciation is due to obsolescence rather than wear and tear.\\n\\n \\n\\nRequired:\\n\\nWhat is the financial advantage (disadvantage) of making the 65,000 starters instead of buying them from an outside supplier?
R company can produce 1,000 of finished goods units through following costs: Direct material Direct labor Variable overhead Fixed overhead The company can buy these 1,000 units from outside for $170,000. Fixed cost of $19,250 is avoidable if units are purchased from outside. If the company will produce the goods, then what will be the cost savings? Answer * O O A B с $82,000 $33,500 $27,000 $19,250 D
Identify the semi-variable costs: 10,000 units 18,000 units Materials $15,000 $27,000Labour $13,000 $19,400Rent $11,500 $11,500Selling overheads $30,000 $46,000 Question 2 options: 1) materials and labour 2) labour and rent 3) rent and selling overheads 4) labour and selling overheads
Activity Cost Pool Machining Machine setups Product design Multiple Choice O $205,000 Activity Reasure Machine-hours Number of setups Number of products Using the ABC system, how much overhead cost would be assigned from the Machining cost pool to Pro $198,000 $225,000 $249,000 80 Activity Reasure Machine-hours Number of setups Number of products F3 Product A 9,000 50 1 Product B 6,000 150 1 888 Cost $ 300,000 $ 150,000 $ 78,000 F4 Expected Activity 12,000 01 200 Setups 2 Products < Prev Cenerente. 5 of 3
Product Volume Material costper unit (R)Direct LabourCost per unit(R)Machine Timeper unit(Hours)Rubber Ball 1 000 5.00 5.50 0.35Leather Ball 700 20.00 2.00 1.00Total production Overheads are as follows:Machine department: R50 000 (machine hours is the cost driver)Set‐up costs: R5 000Ordering Costs‐materials: R2 000Handling materials: R8 000An analysis of production overhead activities for the period for the volume ofproducts manufactured revealed the following:Product # set‐ups # material orders # times material were handledRubber Ball 1 1 2Leather Ball 2 1 3Calculate the total budgeted product cost per unit for the Rubber Ball usingActivity Based Costing (ABC). Round all answers to two decimal places.
Q10 Manama Company manufactures several different products. Unit costs associated with one of these products are as follows: Direct materials Direct ma cturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total Required: Compute the variable manufacturing costs per unit associated with this product. Answer: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph 4 Arial $40 $8 $12 $23 $6 $9 $98 10pt !!! > IXO o ***
Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period= Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $900,000 2,500 setup hours Material handling 820,000 4,000 material moves Machine operation 400,000 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue: Mirlite Subdue 60,000 25,000 400 250 800 250 Gallons produced Direct labor hours Machine hours Direct labor cost Direct materials cost Setup hours Material moves $10,000 $7,500 $360,000 $150,000 Direct materials Direct labor Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs $ 15 60 Manufacturing overhead: Machine setups Material handling Mirlite 12 35 0 x $ 0 x 0 x 0 x Subdue 0 x 0x 0x 0x
Inspect time / unit $10,207 10.8 minutes Sales Volume Variable cost Fixed cost Product X $50,000 1000 $22,057 Product Y $150,000 2000 $56,829 $39,065 12 minutes 1.Calculate the total shadow cost of inspection time in $ / hour Note. The overall opportunity cost for a resource (S) is the maximum value of the Si's across all products that use the resource. Sis called the resource's shadow cost. Inspect time / unit $21,635 14.4 minutes price Variable cost Fixed cost Product Z 79 per unit 29 per unit 2. Calculate the breakeven volume for this new product, taking opportunity cost into account. Note.For each product, the shadow cost should be treated as a variable cost. Sx Ui is added to Ci (variable cost per unit). 3.This situation is an example of which type of product interaction? a. Supply complement b.Supply substitution c.Demand complement d.Demand substitution
If it takes 3 units of raw material to make one unit of a product and the cost per unit of raw material is $5, what is the standard raw material cost per unit of output? a. $1.67 b. $0.60 c. $15.00 d. $3.00

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Model A Model B Model C Selling price $40 $50 $55 Direct materials costs $5 $5 $5 Direct labor costs ($15 per labor hour) $15 $15 $30 Variable support costs ($3 per machine hour) $3 $6 $9 Fixed support costs $10 $10 $10