Please do not give solution in image format thanku Selling priceVariable costs per unit:Direct materialsDirect laborVariable overheadAssume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products:Product A$70Product B$75Total variable cost per unitContribution margin per unitMultiple Choice$14.001640$20.00258$12Saved2428254$21Product C$85Help2032355$30The company incurs total fixed costs of $50,000. The maximum demand for each of its produconly 1,400 pounds of direct materials available for production. Assuming the company has made optimal use of its 1,400 pounds off direct material, what is the maximumis 600 units. Its direct material cost is $8.00 per pound. The company hasamount per pound the company should be willing to pay for additional direct materials?Save & Exit ntribution margin per unitMultiple ChoiceOO$14.00$20.00company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct material cost is $8.00 per pound. The company has1,400 pounds of direct materials available for production. Assuming the company has made optimal use of its 1,400 pounds off direct material, what is the maximumpunt per pound the company should be willing to pay for additional direct materials?$15.00$12$16.00$21SavedI$30mid... QHelp Save & Exit

Production with limited factor we need to calculate contribution margin for limited key factor.…

Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Assume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products: Product A $70 Product B $75 Total variable cost per unit Contribution margin per unit Multiple Choice O $14.00 16 40 2 58 $12 $20.00 Saved 24 28 2 54 $21 Product C $85 ន គ -â| 20 32 3 55 Help $30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct material cost is $8.00 per pound. The company has only 1,400 pounds of direct materials available for production. Assuming the company has made optimal use of its 1,400 pounds off direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? Save & Exit

Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Assume that a company makes three products-Product A, Product B, and Product C-and provides the following information with respect to those products: Product A $70 Product B $75 Total variable cost per unit Contribution margin per unit Multiple Choice O $14.00 16 40 2 58 $12 $20.00 Saved 24 28 2 54 $21 Product C $85 ន គ -â| 20 32 3 55 Help $30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. Its direct material cost is $8.00 per pound. The company has only 1,400 pounds of direct materials available for production. Assuming the company has made optimal use of its 1,400 pounds off direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? Save & Exit

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 69P: (Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for...

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Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours instead of on direct labor B. frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product C. limit the number of cost pools D. always result in an increase of at least one products selling price
(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectibles & More with a special order. The Hall of Fame wants to purchase 53,000 baseball card packs for a special promotional campaign and offers $0.32 per pack, a total of $16,960. Requirement 1. Prepare an incremental analysis to determine whether Collectibles & More should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Per Unit Collectibles & More's total production cost is $0.52 per pack, as follows: (Click the icon to view the…
[The following information applies to the questions displayed below.) The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Percent Units Complete Percent Complete 35% Beginning work in process inventory Units started this period. 76,000 65% 402,000 Completed and transferred out 350,000 Ending work in process inventory 98,000 85% 35% Exercise 20-9 (Algo) Weighted average: Cost per equivalent unit; costs assigned to output and inventory LO P1 The production department had the cost information below. Beginning work in process inventory Direct materials 5.180,444 45,559 Conversion $ 226,003 Costs added this period, Direct materials Conversion 1,278,951 845,186 Total costs to account for 2.124,137 $2,350,140 a. Compute cost per equivalent unit for both direct materials and conversion. (Round "Cost per EUP" to 2 decimal places.) b. Using the weighted average method, assign April's costs to the department's output-specifically,…
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Ice Cool produces two different models of air conditioners. The activities, costs, and cost drivers associated with the production processes follow. Budgeted Budgeted Cost Activity Cost Activity Driver Process Activity Usage Machine hours (MH) Setups $ Assembly Machining 7,800 311,400 20,000 Setups 120 331,400 Finishing Inspecting Inspections 840 226,000 $ 134,000 Support Purchasing Purchase orders 510 Additional production information concerning its two models follows. Units and Activities Units produced Machine hours Setups Inspections Model X Model Z 1,600 2,200 40 3,200 5,600 80 500 340 340 170 Purchase orders Per Unit Model X Model Z Selling price per unit Direct materials cost $ 410 $ 390 150 115 per unit Direct labor cost per unit 125 150 1. Compute the activity rate for each activity using activity-based costing. 2. Using activity-based costing, compute the overhead cost per unit for each model. 3. Compute the total product cost per unit for each model. 4. For each model,…
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Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…
Indirect cost allocationCalculate the overhead surcharges for material, manufacturing & admin based on the followinginformation (numbers in kEUR, unless stated otherwise):Information on direct costsDirect material costs 5,000Direct manufacturing costs 7,500 Information on indirect costsEnergy 2,100Maintenance 500Vehicles 360Material 240Manufacturing 1,200Admin 750 Information on cost allocationEnergy 15,000 MWh manufacturing, 3,500 MWh maintenance, 1500 MWh material, 1,000 MWh admin Maintenance 5 hrs vehicles, 35 hrs manufacturing, 5 hrs material, 5 hrs adminVehicles 3 cars material, 6 cars manufacturing, 21 cars admin
Saved Help Sav CH 07 i Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system cont following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rates $6 per direct labor-hour $ 4 per machine-hour $ 50 per setup $ 90 per order $ 14 per shipment $ 840 per product Production orders Shipments Product sustaining Activity data have been supplied for the following two products: Total Expected Activity K425 M67 Number of units produced per year Direct labor-hours 200 2,000 80 500 Machine-hours Machine setups Production orders 100 1,500 1 4 4 Shipments Product sustaining 1 10 1 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? DELL F3 prt sc home end F4 F5 F6