Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $6.10 4.00 3.20 8.10 $21.40 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.70 per unit and that would require an investment of $15,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company producing the opocial order. The annual financial advantage
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- 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?Z Inc. manufactures a component Zeta which it uses in production of its main product. The manufacturing costs per unit of Zeta are as follows: Item Cost per unit Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3.50 4.50 2.50 2.00 Annual requirement of Zeta is 8,000 units. Fixed manufacturing overhead is allocated to Zeta based on machine-hours used in its production and cannot be avoided if production of Zeta is stopped. An outside supplier has offered Z Inc. to supply 8,000 units at a total cost of $96,000. If Z Inc. purchases the component Zeta from the outside supplier, how will it affect its operating income? a. Operating income will increase by $4,000 b. Operating income will decrease by $4,000 c. Operating income will increase by $6,000 d. Operating income will decrease by $12,000The following standard costs pertain to a component part manufactured: Direct materials=$ 2 Direct labor=$5 Factory overhead=20 Standard cost per unit=$27 Factory overhead is applied at $1 per standard machine hour. Fixed capacity cost is 60% of applied factory overhead, and is not affected by a "make or buy" decision. It would cost $25 per unit to buy the part from an outside supplier. In the decision to "make or buy," what is the total relevant unit manufacturing cost to be considered? $ ________
- Copr. Goed! Alphabet Inc. currently makes part ABC internally. Cost data to make the product are provided below. Direct materials $8.20 Direct labor $2.40 Variable manufacturing $3.30 overhead Fixed manufacturing overhead $3.90 The employee making the product would be terminated if the product is purchased from an outside supplier. Variable manufacturing overhead would be eliminated. Of the fixed manufacturing overhead, $0.90 is traceable to the production of the product and would be eliminated. The remaining fixed overhead would not be eliminated. What is the relevant cost per unit to make ABC part internally? $17.0 $16.90 $13.90 $14.80 SUBMITBeerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P, costing $10 per pound and 0.5 hour of direct labor costing, $16 per hour. The variable overhead rate is $14 per direct labor hour, and the fixed overhead rate is $18 per direct labor hour. What is the standard product cost for product M? Direct material Answer Direct labor Answer Variable overhead Answer Fixed overhead Answer Standard product cost per unit AnswerWhat is the difference in the cost of Widget A, per product, using a traditional labor allocation vs. activity based costing method, assuming the three main cost activities are: Widget A Widget B Total Direct labor hours 300 600 900 Machine hours 100 150 250 Purchase orders = 50 50 100 Here are the summary of fixed costs to consider allocating: Payroll taxes $1,700 Machine maintenance $750 Purchasing Dept. labor $3.500 Fringe benefits $1.500 Purchasing Dept. Supplies $300 Equipment depreciation $1,000 Electricity $1,500 Unemployment insurance $1,300 Traditional method OVER estimates the cost of Product A by $850 Traditional method UNDER estimates the cost of Product A by $850 Traditional method OVER estimates the cost of Product A by $1600 O Traditional method UNDER estimates the cost of Product A by $1600
- Swifty Corporation, Inc.currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead 5 Fixed overhead 8 Total $23 The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? $23 $15 $35 $18Epsilon Corporation has two products with the following resource requirements and related costs: Total Costs Product X Product Y Total Equipment Set Ups Raw Material Orders P 300,000 250,000 400 200 600 200 50 250 Units produced If Epsilon originally allocated the aforementioned overhead costs based on units produced, how much would a unit of Product X absorb more/(less) under AB Costing? 50,000 200,000 250,000Henry Company has established the following standards for the costs of one unit of its product. Thestandard production overhead costs per unit are based on direct-labor hours. Calculation for standard perunit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $ 14.40 6.00 kg $ 2.40 per kg Direct Labor $ 3.00 0.40 hour $ 7.50 per hour Variable Overhead $ 4.00 0.40 hour $ 10.00 per hour Fixed Overhead* $ 4.80 0.40 hour $ 12.00 per hour Total $ 26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry…
- Henry Company has established the following standards for the costs of one unit of its product. Thestandard production overhead costs per unit are based on direct-labor hours. Calculation for standard perunit cost is as follows: Std Cost Std Qty Std Price/Rate Direct Material $ 14.40 6.00 kg $ 2.40 per kg Direct Labor $ 3.00 0.40 hour $ 7.50 per hour Variable Overhead $ 4.00 0.40 hour $ 10.00 per hour Fixed Overhead* $ 4.80 0.40 hour $ 12.00 per hour Total $ 26.20 *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry…How can I resolved this problem Puvo, Incorporated, manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Quantity Standard Price or Rate Standard Cost Direct materials 7.0 pounds $ .80 per pound $ 5.60 Direct labor 0.7 hours $ 45.50 per hour $ 31.85 Variable manufacturing overhead 0.7 hours $ 9.70 per hour $ 6.79 During March, the following activity was recorded by the company: The company produced 3,600 units during the month. A total of 20,600 pounds of material were purchased at a cost of $14,780. There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,820 pounds of material remained in the warehouse. During March, 1,210 direct labor-hours were worked at a rate of $42.50 per hour. Variable manufacturing overhead costs during…Required information [The following information applies to the questions displayed below.] ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below: Required: 1. Calculate the fixed overhead application rate per machine hour using (a) budgeted output, (b) normal capacity, and (c) practical capacity. (Round your answers to 2 decimal places.) 2. What is the total overhead application rate per machine hour for each of the three choices identified in requirement 1 ? (Round your answers to 2 decimal places.) 3. What is the total overhead varlance for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U), (Do not round intermediate calculations. Round your answers to the nearest whole dollar…