Requireda. Compute the per-unit cost for each product.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.b. Compute the profit for each product.X Answer is complete but not entirely correct.a. Cost per unitb. Profit$$Basco Boards77.9666,462 × $ShimanoBoards116.05157,635 X Rooney Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow:Production costsDirect materialsDirect laborAllocated overheadTotal units produced and soldTotal sales revenueBasco Boards Shimano Boards$ 25.30$ 31.30$15.655,300$ 479,650$ 38.60$53.60$20.609,300$ 1,236,900Rooney allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, whichamount to $60,500 per quarter, to the two products equally.Requireda. Compute the per-unit cost for each product.Note: Do not round intermediate calculations. Round your answers to 2 decimal places.b. Compute the profit for each product.

The unit cost comprises all the production and selling expenses incurred to produce and sell the…

Answered: Required a. Compute the per-unit cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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Finch Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow Production costs Direct materials Direct labor Allocated overhead Total units produced and sold Total sales revenue a. Cost per unit b. Profit Basco Boards Shimano Boards Basco Boards $24.60 $ 30.60 $ 15.30 4,600 $ 400,200 Finch allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $57,000 per quarter, to the two products equally. Required a. Compute the per-unit cost for each product. Note: Do not round intermediate b. Compute the profit for each product. $ 37.20 $ 52.20 $ 19.20 8,600 $1,083,600 calculations. Round your answers to 2 decimal places. Shimano Boards
Rundle Boards produces two kinds of skateboards. Selected unit data for the two boards for the last quarter follow: Production costs Direct materials Direct labor Allocated overhead Total units produced and sold Total sales revenue Basco Boards Shimano Boards $ 25.20 $ 31.20 $ 15.60 5,200 $ 468,000 $ 38.40 $ 53.40 $ 20.40 9,200 $ 1,214,400 Rundle allocates production overhead using activity-based costing. It allocates delivery expense and sales commissions, which amount to $60,000 per quarter, to the two products equally. Required a. Compute the per-unit cost for each product. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. b. Compute the profit for each product.
Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $ 65.20 $ 51.00 Direct labor per unit $ 11.20 $ 8.00 Direct labor-hours per unit 1.4 DLHs 1.0 DLHs Estimated annual production and sales 30,000 units 65,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,033,000 Estimated total direct labor-hours 107,000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing…
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 11 square foot $0.73 per square foot $8.03 Direct labor 0.25 hour $10.40 per hour $2.60 Variable manufacturing overhead (based on direct labor hours) 0.25 hour $2.00 per hour $0.50 Fixed manufacturing overhead ($326,880 ÷ 908,000 units) $0.36 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,020,000 Number of square feet of plastic used 11,300,000 Cost of plastic purchased and used $ 7,910,000 Number of labor hours worked 306,000 Direct labor cost $ 3,335,400 Variable overhead cost $ 630,000 Fixed overhead cost $ 363,000 1. Calculate Parker Plastic’s direct materials price and quantity variances.
The following data are used for questions 3 to 12 The Big Book Company builds wooden bookshelf wall units. The company's standard costs are: Wood Trim Direct labor Variable overhead Fixed overhead 25 pounds at P6.40 per pound 8 pounds at P10.00 per pound 5 hours at P12.00 per hour P 30.00 per unit P.130,000 per period, applied at the rate of P20.00 per unit A recent month's transactions were: 160,000 pounds of wood were purchased at P6.50 per pound; 50,000 pounds of trim were purchased at P9.60 per pound. 155,000 pounds of wood were issued to production; 48,500 pounds of trim were issued to production. Direct labor incurred was 31,000 hours at an average cost of P 11.50 per hour. Overhead costs were P302,000, of which P 181,000 were variable. Six thousand units were produced during the month.
Underwood Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of manufacturing overhead that should be assigned to each of the two product lines from the information given below. Total units produced Total number of material moves Direct labor hours per unit Budgeted material-handling costs are $50,000. The material handling cost per wall mirror under activity-based costing is: Multiple Choice O O $0. $250. Wall Mirrors 50 10 165 $770. Specialty Windows 50 30 165.
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost $ 5.04 $ 0.63 per sq. ft. $10.50 per hr. 2.73 $ 1.50 per hr. 0.39 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($308,040 906,000 units) 8 sq ft. 0.26 hr. 0.26 hr. Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost Direct Labor Rate Variance Direct Labor Efficiency Variance 1,220,000 11,200,000 $ 6,720,000 305,000 $ $ 3,233,000 540,000 361,000 $ 0.34 Required: Calculate Parker Plastic's direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the effect of each…
Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme Pathfinder Selling price per unit $ 120.00 $ 87.00 Direct materials per unit $ 63.60 $ 55.00 Direct labor per unit $ 12.00 $ 10.00 Direct labor-hours per unit 1.2 DLHs 1.0 DLHs Estimated annual production and sales 25,000 units 72,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead $ 2,040,000 Estimated total direct labor-hours 102,000 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system. 2. The company is considering replacing its traditional costing system with…
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.45 per sq. ft. $ 17.40 Direct labor 0.3 hr. $ 11.90 per hr. 3.57 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 2.30 per hr. 0.69 Fixed manufacturing overhead ($461,000 ÷ 922,000 units) 0.50 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,160,000 Number of square feet of plastic used 12,000,000 Cost of plastic purchased and used $ 16,800,000 Number of labor hours worked 320,000 Direct labor cost $ 3,744,000 Variable overhead cost $ 1,100,000 Fixed overhead cost $ 377,000 Required:Calculate Parker Plastic’s direct labor rate and efficiency variances. (Do not round intermediate calculations. Indicate the…
Smoky Mountain Corporation makes two types of hiking boots-Xtreme and Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit. Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours Xtreme $ 120.00 $65.20 $11.20 Activities and (Activity Measures) Supporting direct labor (direct labor-hours) 1.4 DLHS 30,000 units The company has a traditional costing system that applies manufacturing overhead to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Pathfinder $ 87.00 $ 51.00 $8.00 1.0 DLH 65,000 units $ 2,033,000 107.000 DLHS Required: 1. Compute the product margins for Xtreme and Pathfinder under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system…
AAA Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information given as follows: Wall Mirrors Specialty Windows Units produced 25 | 25 Material moves per product line 5 15 Direct labor hours per unit 200 200 Budgeted materials handling cost P50,000 18. Under a costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of wall mirrors would be? 19. Under ABC, materials handling costs allocated to one unit of wall mirrors would be?
Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Standard Price Standard Quantity 10 sq ft. $ 0.82 per sq. ft. 0.25 hr. (Rate) Unit Cost $ 8.20 Direct materials (plastic) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead $270,600 + 902,000 units) $10.20 per hr. 2.55 0.25 hr. $ 1.40 per hr. 0.35 0.30 Parker Plastic had the following actual results for the past year: Number of units produced and sold Number of square feet of plastic used Cost of plastic purchased and used 1,020,000 11,000,000 $ 8,800,000 300,000 $ 3,000,000 $ Number of labor hours worked Direct labor cost Variable overhead cost 400,000 357,000 Fixed overhead cost $ Required: Calculate Parker Plastic's direct materials price and quantity variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for…

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