Lattimer Company had the following results of operations for the past year:Contribution margin(15,60 0 units )incomestatementPer UnitAnnual TotalSales$ 12.00$ 187,200Variable costsDirect materials1.5023,40062,40015,600Direct labor4.00Overhead1.00Contribution marginFixed costs5.5085,800Fixed overhead1.0015,600Fixed selling and administrative expenses1.4021,840$ 3.10$ 48,360Incomeforeign company offers to buy 5,200 units at $7.50 per unit. In addition to variable costs, selling these units WNOUroduction capacity is 25,600 units. If Lattimer accepts this additional business, the special order will yield a:Multiple Choice$3,900 profit.$2,100 loss. PerUnitAnnualTotal$ 12.00$ 187,2001.5023,4004.0062,4001.0015,6005.5085,8001.0015,6001.4021,840$ 3.10$ 48,36Ovariable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annualSs, the special order will yield a:

Overhead is an indirect cost that is incurred in the production process of the company. It is used…

Lattimer Company had the föl Contribution margin income statement Per Unit Annual Total Sales (15,600 units) $ 12.0o $ 187,200 Variable costs Direct materials 1.50 23,400 Direct labor 4.00 62,400 Overhead 1.00 15,600 Contribution margin Fixed c osts 5.50 85,800 1.00 15,600 Fixed overhead 1.40 21,840 Fixed selling and administrative expenses $ 3.10 $ 48,360 aome Costs, selling these un

Lattimer Company had the föl Contribution margin income statement Per Unit Annual Total Sales (15,600 units) $ 12.0o $ 187,200 Variable costs Direct materials 1.50 23,400 Direct labor 4.00 62,400 Overhead 1.00 15,600 Contribution margin Fixed c osts 5.50 85,800 1.00 15,600 Fixed overhead 1.40 21,840 Fixed selling and administrative expenses $ 3.10 $ 48,360 aome Costs, selling these un

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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Benoit Company produces three products—A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $80.00 Required 1 Required 2 24.00 24.00 48.00 $ 32.00 Required 3 40% 18.00 25.40 43.40 $ 18.60 30% с $81.00 The company estimates it can sell 800 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 5,000 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 the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Contribution margin per pound of the constraining resource 9.00 43.65…
1. Providence 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: Fixed manufacturing overhead Fixed selling and administrative expense lanolevil subivibr The unit product cost under variable costing is: 7,000 mos i h $78 $89 $6 $3 $532,000 $574,000
8. Given the following data, calculate product cost per unit under variable costing. Direct labor $7 per unit Direct materials $1 per unit Overhead Total variable overhead $20,000 Total fixed overhead $90,000 Expected units to be produced 40,000 units A. $8 per unit B. $8.50 per unit C. $10.25 per unit D. $10.75 per unit E. $12 per unit
kk. Subject:- Accounting
A corporation's cost data is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense What is the amount of product costs, if 4,000 units are produced? Multiple Choice O O O O $57,200 $8,800 $44,400 $53,200 Cost per Cost per Unit Period $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 $ 8,800 $ 4,000
Schwiesow Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice O $38,000 O $39,000 Variable administrative expense Fixed selling and administrative expense $ 6,000 If 9,500 units are produced, the total amount of manufacturing overhead cost is closest to: O $37,000 Cost per Unit $ 7.60 $3.40 $ 2.00 $52.300 $ 1.00 $ 0.30 Cost per Period $ 20,000
What would NUBD Corp. have reported as its income before income taxes if it had used variable costing?
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (200,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $ 15.00 Annual Total $ 3,000,000 2.00 400,000 4.00 800,000 2.50 500,000 6.50 1,300,000 2.00 1.50 400,000 300,000 $ 3.00 $ 600,000 The company receives a special offer for 20,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $80,000 and incremental fixed general and administrative costs of $86,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special…
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Subject: accounting
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 80.00 24.00 24.00 48.00 $ 32.00 Required 1 Required 2 40% Required 3 18.00 25.40 43.40 $18.60 30% с $81.00 The company estimates that it can sell 800 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 5,000 pounds available each month. 9.00 43.65 52.65 $28.35 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 5,000 pounds of materials? 35% Complete this question by…
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