FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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.Zilong Company produces two products (A and B). Direct material and labor costs for Product A total P35 (which reflects 4 direct labor hours); direct material and labor costs for Product B total P22 (which reflects 1.5 direct labor hours). Three
2. Product B will have an overhead cost per unit of?
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- Beerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit Answerarrow_forwardHanshabenarrow_forwardAileen Co manufactures two components, L and M. Both components are manufactured on the machine ZX. The following cost information per unit of L and M is available: Direct material Direct labour Variable overhead Fixed overhead Total cost L M ($) ($) 12 18 25 15 8 7 6 46 10 55 Component L requires three hours on machine ZX and component M requires five hours. Manufacturing requirements show a need for 1,500 units of each component per week. The maximum number of machine ZX hours available per week is 10,000. An external supplier has offered to supply Aileen Co with the components for a price of $57 per component L and $55 per component M. Identify, by clicking on the relevant boxes in the table below, whether each of the following statements are true or false. would be cheaper for Aileen Co to produce all the components in-house if the hours on machine ZX were available Aileen Co should purchase 400 units of component M from the external supplier TRUE TRUE FALSE FALSEarrow_forward
- Oriole's standard quantities for 1 unit of product include 3 pounds of materials and 2.5 labor hours. The standard rates are $4 per pound and $5 per hour. The standard overhead rate is $8 per direct labor hour. The total standard cost per unit of Oriole's product isarrow_forwardA standard cost card for one unit of a product may look like the following: Direct materials (4 pounds @ $1.25 per pound) $5.00 Direct labor (0.1 DLH @ $18 per hour) 1.80 Variable overhead (0.1 DLH @ $2.00 per hour) 0.20 Fixed overhead (0.1 DLH @ $4.60 per hour) 0.46 Total cost per unit $7.46 The standard cost to produce one unit is $7.46. The standard cost to produce 600 units are $ Of course, this is a simplification as the standard cost does not take fixed and variable costs into account. However, if the firm is producing at or near capacity, then the cost per unit of $7.46 could be multiplied by total units to get total standard cost. The standard cost card gives both unit and cost standards. The direct materials total of $5.00 is based on the use of four pounds of material at $1.25 per pound. Similarly, it should take six minutes (0.1 direct labor hour) to produce one unit. This makes it easy to determine total quantities and cost would be for multiple units. If 400 units were…arrow_forwardConcord Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $8.00 per pound Direct labor-2.00 hours at $12.15 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (4,480 pounds) Direct labor (8,480 hours) Variable overhead Fixed overhead The predetermined manufacturing overhead rate is $10 per direct labor hour ($20.00 +2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,200 direct labor hours (5,600 units) for the month. The master budget showed total variable costs of $67,200 ($6.00 per hour) and total fixed overhead costs of $44,800 ($4.00 per hour). Actual costs for October in producing 4,300 units were as follows. Total manufacturing costs $36,288 106,424 61,918 $8.00 24.30 25,882 $230,512 12.00 8.00 $52.30 The purchasing department buys the quantities of raw materials that are expected to be…arrow_forward
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