Barley Brindle produces a single product, Product B. One unit of product B has a prime cost of £6.20, which included one hour of direct labour at £6.20, and each unit uses 0.5 hours of machine time. Estimated production of Product B in 2013 is 60,000 units. Total production overheads are estimated at £218,000. Calculate the overhead recovery rates and total cost of production, based on: a)Direct labour hours b)Machine hours c)Units of production
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MA2.
Barley Brindle produces a single product, Product B. One unit of product B has a prime cost of £6.20, which included one hour of direct labour at £6.20, and each unit uses 0.5 hours of machine time. Estimated production of Product B in 2013 is 60,000 units. Total production
a)Direct labour hours
b)Machine hours
c)Units of production
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- 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 following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?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?
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Eon Ltd produces 15,000 products with Variable Cost per unit being £7 direct materials, £10 direct labour, and £24 variable overhead. In addition to the per-unit costs, the fixed overhead is £75,000. What is the unit cost of the product using the absorption costing technique? a. £42 b. £46 c. £52 d. £56SIMPly Power Inc., manufactures and sells two products: Product V9 and Product B1. Data concerning the expected production of each product and the expected total direct labour-hours (DLHs) required to produce that output is shown below: Expected Production Direct Labour-Hours Per Unit Total Direct Labour-Hours Product V9 300 5.0 1,500 Product B1 800 3.0 2,400 Total direct labour-hours 3,900 The direct labour rate is $27.40 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product V9 $176.90 Product B1 $262.80 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product V9 Product B1 Total Labour-related DLHs $94,848 1,500 2,400 3,900 Machine setups…
- 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 placesQ.5) The estimated costs of producing 6,000 units of a component are: Total Per Unit Direct Material Direct Labor Applied Variable Factory Overhead Applied Fixed Factory Overhead ($1.5 per direct labor dollar) $10 $60,000 48,000 54,000 72,000 9. 12 $39 $234,000 The same component can be purchased from market at a price of $29 per unit. If the component is purchased from market, 25% of the fixed factory overhead will be saved. Required: Decide whether to make this product or buy this product from the market. Show computations.Mars Company manufactures and sells three products. Relevant per unit data concerning each product are given below: Product A B C Selling price $8 $12 $18 Variable costs and expenses $5 $10 $15 Machine hours to produce 2 1 2 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. 1.25.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured? What is the total contribution margin if the hours are (1) divided equally amoung the products and (2) if they are allocated entirely to the product identified above. Total contribution margin (1) Divided equally amoung the…
- The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments. Please answer question 2 thank you very much.The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments.Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor $12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)