Futon Ltd. is a manufacturing company with the following cost information for one ofits products:4.67Standard price per kilogram of direct materials1350Actual quantity of direct materials purchased (in kg)1950Standard quantity allowed for actual production (in kg)$ 305.00Material purchase variance (favourable)What is the actual purchase price per kg?O a) $4.51O b) $4.44O c) $4.90O d) $4.67

The price at which material is purchased is known as the actual price. The standard price is the…

Answered: Futon Ltd. is a manufacturing company…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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Similar questions

Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
1. XY Company manufactures and sells LCD monitor at P5000 each. Compute the following: (a) total variable cost (b) total fixed cost (c) total cost (TC) function (d) total revenue (TR) function (e) profit function (f) the break-even quantity (g) the break-even sales revenue, when the production officer reported the following: > Sale price: P5000 per monitor > direct materials cost: P1000 per unit > direct labor cost: P550 per unit > other overhead cost P950 per unit Fixed costs related to the production are also reported: > salary of management: P200,000 > rent for the factory: P150,000, > other salaries: P140,000 > depreciation of equipment: P12,000
Company D is planning to perform an ABC analysis for its products. An information table is given below. Item Annual Demand Unit Cost 180 $100 130 $140 C 600 $220 D. 60 $70 50 $80 Assuming that class A items represent about 75% of the total dollar usage, class B about 20%, class C less than 5%, what is the annual dollar volume of Item D? a. 132000 b. 4200 C. 18200 d. 4000 e. 18000
The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X
The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GHC40 and total fixed cost of GHC300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity? A. 5556units B. 6665units OC. 5000units D. 6000units
A company has developed a production cost equation for its lone product: Y = 30 + 5X, where X is based on the number of labor hours. Assuming a relevant range of 10 to 20 labor hours, what is the estimated production cost at zero (0) labor hour? a. P 30 b. P 80 c. P130 d. The exact amount cannot be determined without additional information
I'se the following information to answer questions 1-6. Selling price per unit Luriable manufacturing cost per unit Fixed manufacturing cost per unit V'ariable selling cost per unit Fixed selling cost per unit Expected production and sales P100 20 30 25 10 1,000 units 1. Contribution margin per unit is a. P50 b. P55 с. Р80 d. P15 2. The contribution margin ratio is a. 45% b. 50% c. 55% d. 15%
Use the data to prepare the cost statement and income statement by use the variable cost . The production capacity ( 8 000 )unit , the seal price ( 2000 ) to unit . Direct materials ( 176000) Direct wages ( 128000 ). Direct expenses ( 132000 ) Indirect expenses ( 132000 ). ( 100 000 v. , 32 000 f. ). Marketing cost v. ( 100 000 )D. Administration cost 60000 D. Indirect marketing f. ( 100 000). The balance of f. g. f. ( 2500 ) unit , and the balance of f. g. l. ( 1000 ) unit . The number of sales unit ( ? ) unit
Suppose that the total cost to produce 200 units of a consumer item is C(200) = $3,315 and that the marginal cost at this production level is C'(200) = 14 dollars per unit made. Use this information to estimate the total cost C(205). Enter the exact integer value of your cost estimate such as 9823 or 12376 for example.
Marigold Corp. is using the target cost approach on a new product. Information gathered so far is as follows: Expected annual sales Desired profit per unit Target cost What is the unit selling price? O $0.30 O $0.64 O $0.62 O $0.32 500000 units $0.32 $150000
Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information: • Direct material cost per unit Direct labor cost per unit • Variable manufacturing cost per unit Total fixed manufacturing costs.. • Variable selling and administration cost per unit Total fixed selling and administration costs.. .$3,000 .$2,250 ..S1,000 .S1,750,000 ..$1,250 .$550,000 If the company requires a rate of return 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage. c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $5,500 and the company investing $5,000,000 to purchase equipment needed produce 500…
LO.10 (Appendix: carrying costs) Determine the carrying costs for an item costing $6.80, given the following per-unit cost information: Storage cost $0.24 Handling cost 0.28 Production labor cost 1.70 Insurance cost 0.44 Opportunity cost 8% of investment

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