ABC's direct materials costs are $30,000. 60% of ABC's prime costs are Direct Materials costs. ABC's manufacturing costs for the period amount to $100,000. Manufacturing Overhead costs for ABC were: Multiple Choice O $20,000 $50,000 $70,000 $100,000

ABC's direct materials costs are $30,000. 60% of ABC's prime costs are Direct Materials costs. ABC's manufacturing costs for the period amount to $100,000. Manufacturing Overhead costs for ABC were: Multiple Choice O $20,000 $50,000 $70,000 $100,000

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 3CMA: A firm has 100,000 in direct materials costs, 50,000 in direct labor costs, and 80,000 in overhead....

See similar textbooks

Related questions

Q: Nebraska Inc. issues 2,250 shares of common stock for $72,000. The stock has a stated value of $10…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Varlable costs will be…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted…

A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…

Q: Levi manufacturing makes profits with varying pricing structures, but it wants to determine the…

A: The Break-even point indicates the total sales required to recover its total cost. The total cost is…

Q: How do prizes and awards received work in taxation? And, what does gambling winnings work in…

A: Prizes and Awards received - In order to encourage employees for better performance and increase…

Q: A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was…

A: The days' payable outstanding is computed by dividing 365 by the account payable turnover ratio. The…

Q: A partnership is considering possible liquidation because one of the partners (Bell) is personally…

A: Loss on sale of assets == The partnership assets - Sale price of the asset=($400,000 - $240,000)=$…

Q: Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial…

A: S.NoMarginal CostingAbsorption Costing1As the name suggests itself variable cost is considered in…

Q: Wichita Inc. is the leading supplier of desks in all of Sedgwick County. They have provided the…

A: Standard costing is one of useful form of costing being used in business. Under this, standards or…

Q: Heidt Cleaning Services (HCS) is a local custodial service company serving both the residential and…

A: ABC costing, or activity-based costing, is a cost accounting method that allocates indirect costs to…

Q: Company DreamWorks Pixar Universal Company DreamWorks Expenses $ 36,000 88,000 19,000 Pixar…

A: Debt ratio is the ratio between total liabilities and total assets of company. It is calculated by…

Q: The section of Waterways that produces controllers for the company provided the following…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and…

A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Q: (a) Prepare a letter to Mr Bold containing your recommendations for good internal control procedures…

A: i) Based on the above, our recommendations regarding internal control and other procedures should be…

Q: In 2022, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax…

A: Deductions are the expenses that are subtracted from the taxpayer's gross income (GI) to reduce…

Q: es Cornhusker Company provides the following information at the end of 2021. Cash remaining Rent…

A: Balance sheet is a financial statement that shows list of final ending balances of assets,…

Q: Sheffield Home Electronics Corp. completed the following merchandising transactions in the month of…

A: Journal is a record keeping books or digital document where financial transactions are initially…

Q: a)Compute Subsidence’s 20X7 reported net income. b)Compute Plate’s 20X7 income from its own…

A: Loss on sale of LandParticularsAmountsale price590,000Less : carrying amount(475,000)loss on sale of…

Q: The following information is available for Pioneer Company: Sales price per unit is $100. November…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: Assuming that Whispering Inc. uses the conventional retail inventory method, compute the cost of its…

A: The value of the products that a business has on hand for sale at the conclusion of an accounting…

Q: June 1 Sept 30 Date June 1 Sept. 30 (a2) Cheyenne Collision received a 5%, 4-month $4,700 note dated…

A: Journal entries consist of all the business financial transactions. They are recorded in…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Amortization expense is the non-cash expense for the long-term assets from the day it Is put in use…

Q: On January 1, 20X1, Peace, Inc., acquired 70 percent of Silver's outstanding voting stock. No excess…

A: The equity method is used to record the value of an investment that a company makes in another…

Q: system: Activity Budgeted Cost Budgeted Activity Usage $1,184,634 57,900 2,250 1,650 Assembly…

A: The activity rate is calculated as the estimated overhead costs divided by the estimated base…

Q: Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has…

A: Companies making sales on account face bad debt expenses. The bad debt expense refers to the…

Q: During the current year, Ron and Anne sold t

A: Capital gain taxes are imposed on the sale of capital assets, categorized as short-term capital…

Q: beginning and ending finished goods inventories for May are 65 and 40 shades, respectively. Ending…

A: The budget is prepared to estimate the requirements for the future period. The selling and…

Q: Prepare an adjusted trial balance from the following account information, considering the adjustment…

A: Trial balance :— It is the statement that shows list of final ending balances of all ledger accounts…

Q: The following data were selected from the records of Tunga Company for the year ended December 31,…

A: The allowance for uncollectible accounts is a contra-asset account that represents the estimated…

Q: Manero Company included the following information in its annual report: 2019 Sales $178,400 Cost of…

A: The trend analysis is performed to compare the different years data on the basis of base year data.…

Q: [The following information applies to the questions displayed below] Maben Company was started on…

A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…

Q: Adjusting Journal Entries Analyze the transaction and prepare the adjusting journal entry. Recall on…

A: Adjusting entries are those journal entries which are passed at the end of accounting period. The…

Q: The following data pertain to activity and utilities costs for two recent years: Year 2 Year 1…

A: The costs incurred for the production are classified as variable and fixed Costs. The variable costs…

Q: cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and…

A: Indirect costs incurred while producing goods or services. Overhead costs cannot be directly…

Q: Question list O Question 1 O Question 2 K Mike and Julie Bedard are a working couple. They will file…

A: The tax principles serve as guiding principles for policymakers, tax administrators, and taxpayers…

Q: The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the…

A: Balance sheet :— It is one of the financial statements that shows list of final ending balances of…

Q: Skysong Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Ending inventory consists of the cost of all commodities that have not yet been sold and are still…

Q: is an emerging pay disbursement method that allows nearly instantaneous access to compensation.…

A: A disbursement system refers to the way in which finances or payments are distributed to individuals…

Q: Direct Materials Variances Silicone Engine Inc. produces wrist-worn tablet computers. The company…

A: Answer:- 1. Price variance = (Actual price - Standard price) x Actual quantity2. Quantity variance =…

Q: Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,000…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Carr Corporation Issued $64,000 of 7 percent, 11-year bonds on January 1, Year 1, for a price that…

A: Bond selling price refers to the cash proceeds received form selling the bond. The selling price and…

Q: Preble Company manufactures one product. Its variable manufacturing overhead is applied to…

A: Material price variance is one of material cost variance being used in business. It means difference…

Q: Pea Company purchased 70 percent of Split Company’s stock approximately 20 years ago. On December…

A: Noncontrolling Interest refers to the portion owned or allocated to the non-controlling shareholders…

Q: Sheridan Sports sells volleyball kits that it purchases from a sports equipment distributor. The…

A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…

Q: Land Profit Able Itd 1 500 1150 Croc 400 120 Rovaldo 1300 1125 Apple 200 180 Vodacom 650 400 White…

A: fill in the table is as follows:NameNature of InvesteeAccounting Base…

Q: [The following information applies to the questions displayed below.] Maben Company was started on…

A: Sources of assets are the places where a company or individual obtains valuable resources that they…

Q: Assume the dollar amounts given above are for the equivalent of 40,000 units produced during the…

A: Direct material used is the cost of materials incurred directly in the manufacturing of product…

Q: Concord Company applied FIFO to its inventory and got the following results for its ending…

A: According to inventory valuation, inventory is valued at lower of cost of inventory and net…

Q: Use this information about Nuthatch Corporation to answer the question that follows. Nuthatch…

A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Question

Please do not give solution in image format thanku

ABC's direct materials costs are $30,000. 60% of ABC's prime costs are Direct Materials costs.
ABC's manufacturing costs for the period amount to $100,000. Manufacturing Overhead costs for
ABC were:
Multiple Choice
O
O
O
$20,000
$50,000
$70,000
$100,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explanation of Prime Cost and Overhead Cost

VIEW

Step 2: Calculation of Manufacturing Overhead Cost

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Green Bay Cheese Company estimates its overhead to be $375,000. It expects to have 125,000 direct labor hours costing $1,500,000 in labor and utilizing 15,000 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2 machine hours per unit, direct material cost of $14 per unit, and direct labor of $20 per unit. What is the cost of each unit produced?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine hours per unit, direct material cost of $5 per unit, and direct labor of $5 per unit. What is the cost of each unit produced?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?