A company manufacturing two products furnishers the following data for a year:ProductAnnualTotalTotal numberTotalOutput (units)of purchaseordersmachinenumber ofhoursset upsA75012008515B450800115101200200020025The annual overheads are as under:Volume related activity costsRO 55000Set up related costsRO 120000Purchase related costsRO 85000TotalRO 260000You are required to calculate the cost per unit of each product A and B based on:a. Traditional method of charging overheadsb. Activity based costing method

Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

A company manufacturing two products furnishers the following data for a year: Product Annual Output (units) Total Total number Total machine of purchase number of hours orders set ups A 750 1200 85 15 B 450 800 115 10 25 1200 The annual overheads are as under: 2000 200 Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method

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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Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
Labor data for making one gallon of finished product in Karen Company are as follows. (1) Price-hourly wage rate $15.00, payroll taxes $0.60, and fringe benefits $1.70 (2) Quantity-actual production time 1.6 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) (b) (c) Standard direct labor rate per hour. Standard direct labor hours per gallon. Standard labor cost per gallon. hours
The total prime cost of a product was OMR3,900. The variable manufacturing overhead is calculated based on the number of direct labor hours. The variable manufacturing overhead cost per hour is five times the direct labor cost per hour. The fixed manufacturing overhead was OMR2,500. Assuming that direct labor hours were 400 and that the direct labor cost was 30% of direct materials cost, how much is the total manufacturing cost? Select one: O a. OMR25,900 O b. OMR6,400 O c. OMR25,000 O d. OMR23,400 O e. OMR10,900
Barkoff Enterprises, which uses the high-low method to analye cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Machine Hours 800 720 Month Utilities 8,700 8360 8,950 9,360 January February March S10 April May 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. 8) S5,100. O54,760. D) $3,764. E) None of the answers is correct.
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Merone Company allocates materials handling cost to the company's two products using the below data: Multiple Choice Total expected units produced Total expected material moves Expected direct labor-hours per unit The total materials handling cost for the year is expected to be $339,780. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the profab barns is closest to: (Round your intermediate calculations to 2 decimal places.) O O O $154,626.00 250,364.21 $130,340.00 Modular Homes 6,800 $141,145.98 Prefab Barns 9,800 680 880 280 380
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Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours $28,390 15,800 36,069 21,400 32,895 18,700 ITT 26,235 15,100 23,890 13,500 20,700 Month January February March April May June Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) Your answer is correct. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs $ (b) eTextbook and Media * Your answer is incorrect. 10.500 Fixed power costs What is the estimated fixed power cost each month? High 1.41 per factory machine hour 20,683 $ Low Attempts: 1 of 5 used
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