How do you find the net benefit in this? show the methodRelevant CostAmountSales Revenue (12000 x $31.50)$378,000Less: Direct Material (12000 x ($16.40-$4.20))$146,400Direct Labor (12000 x $4.50)$54,000Variable Manufacturing Overhead (12000 x $7.50) (Notes)$90,000Additional setup costs$8400Special equipment cost$5800 Net benefit$73,400 Notes:Total manufacturing overhead rate$40 per hourLess: Fixed manufacturing overhead (1500000/60000)$25 per hourVariable manufacturing overhead $15 per hourRequired machine hour for one unit is half-hour i.e. $7.5 per unit

An income statement is a financial report that indicates the revenue and expenses of a business. It…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(1) calculate the overhead assigned rate (note their order from above): Overhead Cost Items Estimated Overhead Cost Driver Activity Levels Activity Rate Purchasing $70,000 ? ? ? Handling materials $33,350 ? ? ? Machine setups $70,500 ? ? ? Inspections $25,500 ? ? ? Utilities $45,000 ? ? ? (2) calculate the total order cost (again, note their order from above): Activity Cost Drivers Activity Levels Activity Rate Assigned Costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Order Cost ?
According to following information, which of the following is the total cost function in the form of Y = F+V*X ? Number of units produced is 46,000. Fixed Variable Total Cost Cost Costs Material used in Production Labour used in Production Production Facilities cost 92,000 48,000 0006 179,000 230,000 409,000 105,000 85,000 133,000 40,000 197,000 79,000 TOTAL COST Select one: O a. Y = 179,000+V*5 O b. Y = 230,000+V*5 %3D Oc. Y = 409,000+V O d. Y = 179,000+V*23
For each of the following independent cases (A to E), compute the missing values in the table: Case B C D E Prime Conversion Cost Cost $ 9,450 $ 16,420 $ 56,200 110,700 49,250 Direct Materials 4,070 10,150 41,800 19,600 Direct Manufacturing Labor Overhead BIM $ 7,440 11,350 13,600 11,040 24,800 23,900 Total Manufacturing Cost 42,390 68,850 56,600
According to following information, which of the following is the total cost function in the form of Y = F+V*X? Number of units produced is 18,000. Fixed Variable Cost Cost Material used in Production 88,000 40,000 Labour used in Production 42,000 38,500 Production Facilities cost 37,000 29,500 TOTAL COST 167,000 108,0OC Select one: • a. Y = 167,000+V*6 Ob. Y 167,000+V*18 c. Y = 275,000+V*108 O d. Y = 108,000+V*275
According to following information, which of the following is the total cost function in the form of Y = F+V*X? Number of units produced is 18,000. Fixed Variable Total Cost Cost Costs Material used in Production 88,000 40,000 128,000 Labour used in Production 42,000 38,500 80,500 Production Facilities cost 37,000 167,000 108,000 275,000 29,500 66,500 TOTAL COST Select one: O a. Y = 275,000+V*108 O b. Y = 167,000+V*18 O CY = 167,000+V*6, O d.Y = 108,000+V*275 e to search F10 D Gy H i BY NT M
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…
Compute conversion costs given the following data: direct materials, $352,900; direct labor, $204,800; factory overhead, $222,500 and selling expenses, $44,700. a.$575,400 b.$177,800 c.$427,300 d.$780,200
The following data relates to the operations of company A; direct material cost per unit- ghc5, direct labour cost/unit- ghc20 @ ghc2/hour, indirect production expense is made up of- depreciation- 50000, indirect material- ghc30000, and indirect labour- ghc20000. The company plans to produce 5000units and absorb overhead based on direct labour hours. What is the cost per unit? A. Ghc45 B. Ghc40 C. Ghc35 D. Ghc30 Reset Selection
i need Part B solution now i have already part A solution i attacheed here also a). Total Manufacturing cost = Direct material + Direct labor + Manufacturing overhead Total manufacturing cost = 9,700 + 5,100 + 8,400 = $23,200 b). Cost of Goods manufactured = Total manufacturing cost + Beginning WIP - Ending WIP 17,100 = 23,200 + 1,100 - Ending WIP 17,100 = 24,300 - Ending WIP Ending WIP = 6,100 c). Goods available for sale = Cost of goods manufactured + Beginning Finished Goods 22,100 = 17,100 + Beginning Finished goods inventory Beginning Finished Goods Inventory = 5,000 d). Cost of Goods sold = Goods available for sale - Ending Finished Goods Inventory Cost of Goods sold = 22,100 - 3,500 = $18,600 e). Gross Profit = Net Sales - Cost of goods sold = (Sales revenue - Sales discounts) - Cost of goods sold = (25,000 - 2,600) - 18,600 = 3,800 f). Net Income = Gross Profit - Operating Expense = 3,800 - 2,800 = 1,000 arrow_forward Step 3 g). Direct Material Used = Total…
Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X). The following relationship was found: Y = $1,000 + $2X The equation was probably found through the use of which of the following mathematical techniques?
Magnificent Sdn Bhd is a manufacturing company producing slime. It has two production departments; Mixing and Packing and two service departments; Store and Maintenance. Mixing department is more machine oriented and Packing is more labour oriented. The following information relates to the operation on the month of May 2020: Mixing RM189,500 Packing RM90.500 Actual total production overheads Budgeted total production overheads RM178,500 Actual machine hours RM94,500 5,050 1,010 Budgeted machine hours 5,100 1,100 Actual direct labour hours 1,380 3,460 Budgeted direct labour hours 1,400 3,500
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Relevant Cost	Amount
Sales Revenue (12000 x $31.50)	$378,000
Less:
Direct Material (12000 x ($16.40-$4.20))	$146,400
Direct Labor (12000 x $4.50)	$54,000
Variable Manufacturing Overhead (12000 x $7.50) (Notes)	$90,000
Additional setup costs	$8400
Special equipment cost	$5800
Net benefit	$73,400

Total manufacturing overhead rate	$40 per hour
Less: Fixed manufacturing overhead (1500000/60000)	$25 per hour
Variable manufacturing overhead	$15 per hour
Required machine hour for one unit is half-hour i.e.	$7.5 per unit