Explain your answer and pls show your complete solution TotalBudget ItemProductCostsAce200,000Bell100,000Budgeted sales in unitsSelling price per unitDirect materials cost per unitDirect labour hours per unit$40$20$8$31Depreciation$200,000Rent$130,000Other manufacturing support$500,000costsSelling Costs$180,000General and administrative costs$40,000Rust Manufacturing Co.BUDGET FOR ACE AND BELLFor the Year Ending December 31, 2006AceBellSales (1)$8,000,000$2,000,000Variable costs:Direct materials (2)Direct labor (3)Variable manufacturing support (4)$1,600,0002,000,000200,000$3.800.000$4,200.000$300,000500,00050,000$850,000$1.150.000Contribution marginFixed costs:$140,00078,000$60,00052,000Depreciation (5)Rent (6)Other manufacturing support (7)Selling Costs (8)General and Administrative costs (9)200,000120,00050,00032,000$570,000$3.630.00060,0008,000$230.000$920.000Pretax operating profitCalculate the contribution margin per unit and the pretax operatingprofit per unit for Ace and for Bell.

Budget: A budget is an estimation to determine the income that will be earned and expenses that will…

Total Budget Item Product Costs Ace 200,000 Bell 100,000 Budgeted sales in units Selling price per unit Direct materials cost per unit Direct labour hours per unit $40 $20 $8 $3 1 Depreciation $200,000 $130,000 Rent Other manufacturing support $500,000 costs Selling Costs $180,000 General and administrative costs $40,000 Rust Manufacturing Co. BUDGET FOR ACE AND BELL For the Year Ending December 31, 2006 Aco Roll

Total Budget Item Product Costs Ace 200,000 Bell 100,000 Budgeted sales in units Selling price per unit Direct materials cost per unit Direct labour hours per unit $40 $20 $8 $3 1 Depreciation $200,000 $130,000 Rent Other manufacturing support $500,000 costs Selling Costs $180,000 General and administrative costs $40,000 Rust Manufacturing Co. BUDGET FOR ACE AND BELL For the Year Ending December 31, 2006 Aco Roll

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin Agency Line BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a 3 different complete service cost allocation report with details using the following methods: 1. Direct Method IT Services
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Reciprocal Method
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Step-Down Method (Admin Support Costs are allocated first)
Company A produces a component used in the production of one of the company’s main products. The costs are budgeted as follows: Amount per unit (R) Amount per 5 000 units (R) Materials 5 25 000Labour 15 75 000Variable overhead 10 50 000Depreciation 4 20 000Allocated general overhead 12 60 000Total cost 46 230 000The components can be purchased from an outside supplier at a cost of R35 per unit. Required: Q.3.1 Determine whether the company should make or buy the component. In arriving at your solution clearly show all your workings, as marks will be allocated. Q.3.2 State five qualitative aspects that the company must evaluate before making a…
Company A produces a component used in the production of one of the company’s main products.The costs are budgeted as follows:Amount per unit (R) Amount per 5 000 units (R)Materials 5 25 000Labour 15 75 000Variable overhead 10 50 000Depreciation 4 20 000Allocated general overhead 12 60 000Total cost 46 230 000The components can be purchased from an outside supplier at a cost of R35 per unit.Required:Q.3.2 State five qualitative aspects that the company must evaluate before making a decision in Q.3.1 above.Q.3.3 Briefly explain the difference between avoidable costs, differential costs and opportunity costs. Provide one example of each cost.Q.3.4 List two examples of scenarios where relevant costing can be used effectively in decision‐making.
Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit $30,000 $2.00 $45,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product X: O $20,000 Product X 400 $60,000 $50,000 $25,000 $15,000 $20,000 Product Y 600 $60,000 $15,000 $10,000 $35,000 Total 1,000 $120,000 $40,000 $25,000 $55,000 $50,000 $5,000
Company A produces a component used in the production of one of the company’s main products.The costs are budgeted as follows:Amount per unit (R) Amount per 5 000 units (R)Materials 5 25 000Labour 15 75 000Variable overhead 10 50 000Depreciation 4 20 000Allocated general overhead 12 60 000Total cost 46 230 000The components can be purchased from an outside supplier at a cost of R35 per unit. Determine whether the company should make or buy the component. In arriving at your solution clearly show all your workings.
Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit Product A 400 $60,000 Product B 600 $60,000 $25,000 $15,000 $10,000 $15,000 Total 1,000 $120,000 $40,000 $25,000 $25,000 $30,000 $55,000 $50,000 $5,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product A:
Costing information for Emily Elephant Limited is as follows:Direct material cost per unitDirect labour cost per unitVariable manufacturing overhead cost per unitVariable selling and administrative overhead cost per unitFixed manufacturing overhead for the year£41 £43£6£4£44,000Budgeted production for the year was 4,000 units. What is the budgeted unit product cost according to an absorption costing system? a. £90 b. £101 c. £105d. £94
Support Departments Producing Departments Human Resources $175,000 General Factory $360,000 Fabricating Assembly $114,000 $99,000 Direct costs Normal activity: Number of employees 50 70 160 Square footage 1,700 5,600 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources 0 0 General Factory X 0
Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost ₱075,000 Selling expenses ₱316,000 Administrative expenses ₱314,000 What is the cost of direct materials? Show solution Group of answer choices ₱175,000 ₱193,750 ₱220,000 ₱150,000
Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $153,000 $1,530,000 Direct labor hours 143,000 310,000 Machine hours 21,000 196,000 Production runs 40 60 Inspection hours 900 1,300 Maintenance hours 8,000 92,000 Overhead costs: Setup costs $300,000 Inspection costs 209,000 Machining 318,200 Maintenance 260,000 Total $1,087,200 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per run Inspections Inspection hours per hour Machining Machine hours per hour Maintenance Maintenance hours per hour Overhead assignment Model A Model B Setups Inspections Machining…