5. Suppose that Dara manufactures 4 products: A, B, C and D. output and cost datafor period just ended are as follows:ABсDOutput units1010100100Number of productionruns in the periodhour rate)225Direct labor cost per hours: $5Overhead costsShort-run variable costsSet-up costsExpediting and scheduling costsMaterials handling costs2. ABC514Material costper unit20802080Direct laborhours per unit1313Machinehours per unit$3,08010,9209,1007,70030,800▪ RequiredPrepare unit costs for each product using:1. Conventional absorption costing,(Assume that, in the traditional absorption costing system, overheads are a direct labor1313

Under ABC costing the overhead cost is allocated based on the activities that are involved in the…

Answered: 5. Suppose that Dara manufactures 4…

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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Blossom Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $11 $14 $16 Variable costs and expenses $6 $12 $13 Machine hours to produce 2 1 2 (a) Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $enter a dollar amount rounded to 2 decimal places $enter a dollar amount rounded to 2 decimal places
3
If it takes 3 units of raw material to make one unit of a product and the cost per unit of raw material is $5, what is the standard raw material cost per unit of output? a. $1.67 b. $0.60 c. $15.00 d. $3.00
Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product A B C Selling price $ 80.00 $ 60.00 $ 72.00 Variable expenses: Direct materials 24.00 15.00 9.00 Other variable expenses 24.00 33.00 45.00 Total variable expenses 48.00 48.00 54.00 Contribution margin $ 32.00 $ 12.00 $ 18.00 Contribution margin ratio 40% 20% 25% The company estimates that it can sell 1,000 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 6,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 6,000 pounds of materials?
This topic is about Cost Behavior. Observations Unit Volume Total Production Cost 1 6,500 26,500 2 7,000 28,000 3 8,100 31,800 4 5,500 24,500 5 5,400 25,000 6 3,600 21,400 7 3,400 15,300 8 7,500 28,500 9 3,500 19,000 10 3,000 18,000 11 9,000 32,000 12 4,400 21,500 13 7,200 28,500 14 500 5,000 Using the data above, create a scattegraph method and determine the total variable cost per unit total fixed cost, and total variable cost.
5
s
Question: Gangwer Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct Labor Variable Manufacturing overhead Variable selling and administrative expense Fixed Costs per year: Fixed manufacturing overhead Fixed Selling and administrative expense The absorption costing unit product cost is: A. $95 B. $119 6,000 $ 43 $ 13 $ 5 $ 1 $2,04,000 $ 1,38,000 C. $61 D. $56
JSON-2603 Inc. produces Products X5, Y8, and Z9. The following table provides per unit information relating to the three products: Product Y8 X5 Z9 $ 90.00 $ 66.00 $ 80.00 Selling price Variable expenses: Direct materials 18.00 27.00 27.00 54.00 Other variable expenses Total variable expenses Contribution margin 31.50 9.00 47.00 56.00 $ 24.00 49.50 $36.00 $16.50 Contribution margin ratio 40% 25% 30% JSON-2603 has enough demand to sell 700 units of each product per month. Each product requires the same direct materials in its production. The direct materials cost $3 per pound. The company will at most have 5,700 pounds of the direct materials available every month. What is the maximum contribution margin that JSON-2603 can earn per month using its 5,700 pounds of direct materials optimally? Ⓒ$ 31,200 $ 33,700 Ⓒ$ 16,800 Ⓒ$ 14,400
Direct material $0.10, Direct laber is $0.25, Variable Overhead is $0.10, Fixed overhead is $0.40 what is the fixed costs per unit, the total cost per unit, and gross margin if 1,600,000 units were produced?
Kyrie Company produces different sizes of basketballs. The following costs were incurred during the year. Materials Labor Factory overhead P65,000 (P 15,000 is indirect) 70,000 (P 18,000 is indirect) 95,000 (including indirect materinls and indirect Iabor) · 2,600 18,600 General and administrative expenses Office salaries There were no work in process at the end of the year, 5,000 units were produced, and 90% of the units produced were sold Required: 1. Compute the prime costs 2. Compute the conversion costs 3. Compute the total product costs 4. Compute the total period costs 5. If the selling price is P50.00, how much is the net income

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