To calculate how much direct materials to purchase, the first point to consider is: O a. budgeted production. O b. actual materials purchase from the previous year. O c. budgeted sales. O d. None of the given answers. O e. budgeted cost of direct materials. to search W delete home 96 backsp ace Dum lock E P enter pause M ↑ shift alt ctri

To calculate how much direct materials to purchase, the first point to consider is: O a. budgeted production. O b. actual materials purchase from the previous year. O c. budgeted sales. O d. None of the given answers. O e. budgeted cost of direct materials. to search W delete home 96 backsp ace Dum lock E P enter pause M ↑ shift alt ctri

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....

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production. Which one of the following is likely to be a cost driver? Select one: Oa. Machine hours Ob. None of the given answers Oc. depreciation. Od. Retail price O e. Monthly rent. ESET NOD32 A Your system is expos click on this notificat Wers to Ch3 Pau ScrLk NmLk PrtSc Thinklantage Bre SysRq
1. Match each of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between 1. Cost Variance total overhead cost that would have been expected if the actual operating 2. Volume Variance volume had been accurately predicted and 3. Price Variance the amount of overhead cost that was allocated to products using the predetermined standard overhead rate. 4. Quantity Variance 5. Standard Costs A planning budget based on a single predicted amount 6. Fixed Budget of sales or production volume; unsuitable for 7. Flexible Budget…
True or false a. The direct materials budget shows the number of units that are to be produced during a budget period. (……….)b. A budget specifies how resources will be acquired and used during a given period of time. (……….)
1. Which is not the factor causing unfavourable direct material usage? Select one: a. Change in rate of utility costs b. Faulty machine used in the production process c. Ineffective supervision d. Inexperienced direct labour 2.A flexible budget is a budget that: Select one: a. contains only variable production costs. b. is updated with actual costs as they occur during the period. c. is prepared using a computer spreadsheet application. d. is updated to reflect the actual level of activity during the period.
Q1Prepare the production budget in units. Q. Use the production budget to: a. Find the budgeted number of setups and setup-hours and the allocation rate for setup costs. b. Find the budgeted total machine-hours and the allocation rate for processing costs. c. Find the budgeted total units produced and the allocation rate for inspection costs.
a. What is the EOQ for this component?b. What is the reorder point?c. What is the cycle time?d. What are the total annual holding and ordering costs associated with your recommendedEOQ?
The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…
46.) Given the following information, choose the cost and activity that would be used as the high data point in high-low cost estimation: Costs (P) Activity (hours)48 000 41 50049 000 42 00057 000 42 50056 000 43 00055 000 43 500Group of answer choices P57 000 and 42 500 hours P55 000 and 42 500 hours P57 000 and 43 500 hoursP55 000 and 43 500 hours P55 000 and 43 000 hours P56 000 and 43 500 hours
Various cost-behavior patterns. (CPA, adapted). The vertical axes of the graphs below represent total cost, and the horizontal axes represent units produced during a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes. Select the graph that matches the numbered manufacturing cost data (requirements 1-9). Indicate by letter which graph best fits the situation or item described. The graphs may be used more than once. Annual depreciation of equipment, where the amount of depreciation charged is computed by the machine-hours method. Electricity bill—a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced. City water bill, which is computed as follows: First 1,000,000 gallons or less $1,000 flat fee Next 10,000 gallons $0.003 per gallon used Next 10,000 gallons $0.006 per gallon used Next 10,000…
To prepare the direct labor budget, the first point to consider is: O a. labor cost per unit. O b. None of the given answers. Oc. budgeted cost of direct materials. O d. budgeted units to produce. O e. budgeted units to sell.
Determine fixed and variable costs using the high-low method and prepare graph. E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 Instructions a. Determine the fixed and variable cost components using the high-low method. b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 cost increments.
4. The variable cost per equivalent unit for conversion for the month.5. The total variable cost of goods transferred out.6. The total variable cost of ending work in process inventory. Please explain your work in detail and provide in-text citations. At least six (6) peer-reviewed references are required among which one should be the textbook as source of the data. Include the initial situation and the initial assumptions in your answer.