40 00:59:33 Questions 39-40 refer to the following: The Minard company uses the following condensed flexible budget for manufacturing overhead: Variable overhead $5.80 per direct labor hour Budgeted fixed overhead $420,000 per year At an activity level of 400,000 direct labor hours, the budgeted variable manufacturing overhead cost would be: Multiple Choice о $2,740,000 $2,320,000 $820,000 O $420,000

40 00:59:33 Questions 39-40 refer to the following: The Minard company uses the following condensed flexible budget for manufacturing overhead: Variable overhead $5.80 per direct labor hour Budgeted fixed overhead $420,000 per year At an activity level of 400,000 direct labor hours, the budgeted variable manufacturing overhead cost would be: Multiple Choice о $2,740,000 $2,320,000 $820,000 O $420,000

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

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...

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(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
Q Questions 39-40 refer to the following: The Minard company uses the following condensed flexible budget for manufacturing overhead: Variable overhead $5.80 per direct labor hour Budgeted fixed overhead $420,000 per year At an activity level of 600,000 direct labor hours per year, the budgeted total manufacturing overhead cost would be: F1 Multiple Choice @ 2 W $3,840,000 $3,900,000 $1,020,000 $420,000 F2 # 3 L APR 28 80 F3 $ 4 Q F4 % 5 * DII 8 FB A 19
QUESTION 5 The following budgeted profit statement has been prepared using absorption costing principles.A company manufactures and sells a single product which has the following cost and sellingprice structure: P/unit P/unit Selling price P120 Direct material 22 Direct labour 36 Variable overhead 14 Fixed overhead 12 P84 Profit per unit P36 The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month.Assume that the same amount is spent each month on fixed overheads.Budgeted sales for next month are 2,200 units.You are required to calculate:a. The breakeven point, in sales units per month. b. The margin of safety for the next month. c. The budgeted profit for the next month. d. The sales required to achieve a profit of P96,000.
le 12L x Connect neducation.com e i Saved Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (10, 500 units) $21,000 5,250 $15,750 5,250 $10,500 Variable costs Contribution margin Fixed costs Net income If actual production totals 10,900 units, the flexible budget would show total costs of: Multiple Choice
uiz i 2 Required information [The following information applies to the questions displayed below.] The fixed budget for 20,900 units of production shows sales of $438,900; variable costs of $62,700; and fixed costs of $142,000. If the company actually produces and sells 27,300 units, calculate the flexible budget income. Contribution margin Flexible Budget------ ---Flexible Budget at --- Variable Amount per Unit Total Fixed Cost 20,900 units 27,300 units
Question 1 Shiashi Ltd is preparing its manufacturing overhead budget for 2024. Relevant data consist of the following: - Units to be produced (by quarters): 20,000, 24,000, 34,000 and 36,000. Direct labour: Time is 1.5 hours per unit. Variable overhead costs per direct labour hour: Indirect materials GH¢1.40; indirect labour GH 2.40 and maintenance $1.50. Fixed overhead costs per quarter: Supervisory salaries GH 55,000; depreciation GH 27,000 and maintenance GH¢25,000. a) You are required to prepare the manufacturing overhead budget for the year, showing quarterly data. b) What does an organisation stand to gain by preparing annual budgets for its operations? c) Describe the budgeting process of any business entity that you are familiar with.
Current Attempt in Progress Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor Indirect materials Utilities $1.30 0.60 0.20 Fixed overhead costs per month are Supervision $4,000, Depreciation $1,600, and Property Taxes $700. The company believes it will normally operate in a range of 8,100-11,700 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020
Ch. 8 Total Budgeted Cost of Goods Sold Problem. Please solve the following problem and explain each step. S&P's direct material cost is $6.50 per unit. The direct laboer is $30 per hour and each unit takes 1/2 hour to produce. Variablel Manufacturing Overhead is $2.75 per unit and total fixed overhead is $63,000. A sales commission of $5 is paid on each unit. If S&P expects to produce 9,000 units and sell 7,000 units, the total budgeted cost of goods sold for the year is?
vercise 2-Flexible budget and overhead rates: Babyl Company expects a normat capacity of 20,000 direct labor hours for March 2017. The over- head costs under this normal capacity are as follows: Fixed costs ID 1,000,000 ID 800,000 ID 2,200,000 ID 3,000,000 ID 400,000 Variable costs ID 100 per Indirect labor Other costs ID 50 per DLH Maintenance ID 120 per DLH Depreciation Supplies ID 20 per DLH Required: 1-Prepare flexible budget for levels of activity from 18,000 to 24,000 direct labor hours in increments of 2,000 direct labor hours. 2- Calculate standard overhead rates.
UUM 440000 O The Toshiba company uses a -3 Flexible Budget monthly for factory overhead cost budget (at normal capacity of 5,o00 units or 20,000 direct labor hours). The variable Indirect labor cost is $1,100,000. How much it will be.. if the production ?level is 5,500 units 1100000 O 302500 1000000 1210000 The motor company uses a -4 Flexible Budget monthly for factory overhead cost budget (at normal
8 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities Fixed overhead costs per month are Supervision $3,500, Depreciation $1,300, and Property Taxes $700. The company believes it will normally operate in a range of 5,500-8,500 direct labor hours per month. Variable Costs Indirect labor $1.20 Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs. Indirect materials Utilities 0.80 0.40 Depreciation $8,720 Supervision 5,830 Depreciation 2,590 Property taxes Direct Labor Hours Fixed Costs Indirect Labor Indirect Materials Property Taxes Supervision Fixed Costs Total Costs Total Fixed Costs Total Variable Costs Utilities Variable Costs (a) Prepare a flexible budget performance report, assuming that the company worked 7,500 direct labor hours during the month. (List variable costs before fixed…
es ! Required information Use the following information for the Quick Studies below. (Algo) Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Overhead cost Direct labor hours Machine hours Assembly 13,000 direct labor hours 5,000 machine hours $ 1,560,000 QS 17-6 (Algo) Computing plantwide overhead rates LO P1 1. What is the company's single plantwide overhead rate based on direct labor hours? Actual Direct labor costs Actual Direct materials Actual machine hours Actual overhead costs Budgeted direct labor costs Budgeted direct labor hours 2. What is the company's single plantwide overhead rate based on machine hours? Finishing 19,000 direct labor hours 15,000 machine hours $ 1,035,000