Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
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Required information Use the following information for the Exercise below. (Static) [The following information applies to the questions displayed below] Barnes Company reports the following for its product for its first year of operations. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 35 per unit $ 25 per unit $ 10 per unit $ 48,000 per year $ 3er unit $ 20,000 per year Exercise 19-4 (Static) Computing cost per unit at different production levels LO P1, P2 Compute total product cost per unit using absorption costing for the following production levels: (a) 2,000 units, (b) 2,400 units 3,000 units. -Units produced Product cost per unit using absorption costing 2,000 2,400 3,000 Direct materials Direct labor Variable overhead Fixed overhead" Total product cost per unit 24 20 16 94 $ 90 $ 86 < Prev