A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost fromthe supplier are $7 per square foot, net of purchase discount. Freight - in amounts to $0.10 per square foot. Basicwages of the assembly line personnel are $13 per hour. Payroll taxes are approximately 20% of wages. Benefitsamount to $2 per hour. How much is the direct materials cost standard per square foot?OA. $7.00OB. $22.00OC. $15.00OD. $7.10

D.) $7.10.Explanation:To calculate the direct materials cost standard per square foot, we need to…

Answered: A company is setting its direct…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PA: Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the...

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Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $14 per hour. Payroll taxes are approximately 21% of wages. Benefits amount to $2 per hour. How much is the direct materials cost standard per square foot? OA. $16.00 OB. $9.40 OC. $9.00 OD. $25.00
A company is setting its direct materials and direct labor standards for its leading product. Direct materials cost from the supplier are $7 per square foot, net of purchase discount. Freight−in amounts to $0.40 per square foot. Basic wages of the assembly line personnel are $17 per hour. Payroll taxes are approximately 20% of wages. Benefits amount to $4 per hour. How much is the direct materials cost standard per square foot? A. $21.00 B. $7.00 C. $28.00 D. $7.40
ABC Corporation has the following estimated cost information for the upcoming year: a. Direct materials $100,000. b. Indirect Materials: $20,000. c. Direct labor: $150,000. d. Indirect labor: $70,000. e. Other MOH: $50,000. f. Sales commissions: $25,000. g. Advertising expense: $51,000. h. Rent on factory building: $35,000. i. Rent on office building: $40,000. The company estimated that 10,500 machine hours and 20,000 direct labor hours will be worked during the upcoming year. The company uses direct labor hours as the allocation base. What is the POHR rate for the company?
A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $8.00 per square foot, net of purchase discount. Freight−in amounts to $0.10 per square foot. Basic wages of the assembly line personnel are $12.00 per hour. Payroll taxes are approximately 24% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.) A. $14.88 B. $2.88 C. $12.00 D. $22.88
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Direct materials Direct labor Supplies Utilities Depreciation Insurance Fixed Cost per Month $ 42,100 $ 1,200 $ 14,600 $ 11,400 For example, utilities should be $1,200 per month plus $0.25 per machine-hour. The company expects to work 4,000 machine- hours in June. Note that the company's direct labor is a fixed cost. Direct materials Direct labor Cost per Machine- Hour $ 5.50 Required: Prepare the company's planning budget for June. Wyckam Manufacturing Incorporated Planning Budget for Manufacturing Costs For the Month Ended June 30 Supplies Utilities Depreciation Insurance Total manufacturing cost $ 0.30 $ 0.25
Michael & Company expects overhead costs of $25,000 per month and direct production costs of $22 per unit. The estimated production activity for the current accounting period is as follows: Units produced The predetermined overhead rate based on units produced is: Note: Round your answer to the nearest penny Multiple Choice $0.50 per unit. $2.00 per unit. $28.00 per unit. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 12,500 8,900 19,850 8,750 $6.00 per unit.
Kingston Company sells its product for $300 per unit. The company's accountant provided the following cost information: Manufacturing costs Selling costs Administrative costs $20,300 + 46% of sales $13,100+ 23% of sales $25,400+ 8% of sales. What is Kingston Company's contribution margin ratio?
Last year, Bagger Company had sales revenue of $1,250,000, direct materials of $280,000, directlabor of $310,700, overhead of $449,300 (30% is variable). Bagger calculates sales price using a markup on cost of goods sold. Required1. Calculate the markup Bagger will use.2. If a job has manufacturing cost of $43,000, what is Bagger’s price?
A.Prepare Statement of Income and Expenses with a marginal contribution approach. Empresas La Torre presents the following information for the year ended December 31, 2020: Product Costs: Direct materials (Variables) $ 50.00 per unit Direct Labor (Variable) $ 20.00 per hour Variable Indirect Costs $ 10.00 per hour Total Fixed Indirect Costs $ 250,000 Period Expenses Seller Commissions $ 20.00 per unit Variable Administrative Expenses $ 30.00 per unit Total Fixed Administrative Expenses $ 150,000 The company sells solar batteries at $ 200.00 per unit. Making each battery takes 2 hours of direct labor. The company taxes its income at 40%. If the Company sells 10,000 units, prepare a statement of income and expenses using the marginal contribution approach.

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