Maine Office Products produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-partclassification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2020 are $190 million ($18 million of which are fixed). Thistotal amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2020 are as follows:(Click the icon to view the data.)Read the requirements.Requirement 1. Compute the manufacturing cost per unit for each product produced in July 2020.Begin by determining the formula needed to calculate the total manufacturing cost per unit.Total manufacturing costsUnits produced= Total manufacturing cost per unitUsing the formula you determined above, calculate the company's total manufacturing cost per unit for each type of product produced in July 2020. (Round your answers to the nearest cent.)Total manufacturing cost per unit produced in JulySupremeDeluxeRegular

Supreme, Deluxe, and Regular are the three paper products that Maine Office Products manufactures.…

Answered: Maine Office Products produces three…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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2) Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and manufacturing overhead costs. Total manufacturing overhead costs of the plant in July 2011 are $150 million ($15 million of which are fixed). This total amount is allocated to each product line on the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for July 2011 are as follows: Supreme Deluxe Regular Direct material costs $ 89 $ 57 $ 60 Direct manufacturing labor costs $ 16 $ 26 $ 8 Manufacturing overhead costs $ 48 $ 78 $ 24 Units produced 125 150 140 a. Compute the manufacturing cost per unit for each product produced in July 2011. b. Suppose that in August 2011, production was 150 million units of Supreme, 190…
Masipag Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers.. For November 2021, Masipag Company presented the following costs on three processes: A. What is the total units to account for (TUTAF) in Department 1? 23,500 22,500 25,000 21,750 B. What is the equivalent units of production (EUP) on Materials in Department 1? 23,500 20,000 25,000 22,500
Zoey Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers.. For November 2021, Masipag Company presented the following costs on three processes: A. What is the total units to account for (TUTAF) in Department 1? 23,500 22,500 25,000 21,750 B. What is the equivalent units of production (EUP) on Materials in Department 1? 23,500 20,000 25,000 22,500
Compute for the total Factory overhead rate of G Department, if the company uses the STEP METHOD in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours.
Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required:1. Allocate the two support departments’ costs to the two operating departments using thefollowing methods: a. Direct method b. Step-down method (allocate MR first) c. Step-down method (allocate US first) d. The Algebraic method. 2. Compare and explain differences in the support-department costs allocated to eachproduction department. 3. What approaches might be used to decide the sequence in which to allocate supportdepartments when using the step-down method?
Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required:1. Allocate the two support departments’ costs to the two operating departments using thefollowing methods:a. Direct method b. Step-down method (allocate MR first) c. Step-down method (allocate US first) d. The Algebraic method.
Compute for the total Factory overhead rate of G Department, if the company uses the step method in allocating service department costs and distributes the cost of Department U first, Department V second and finally Department W. The producing departments uses the following bases: Department H, 100,000 direct labor hours; and Department G, 195,000 direct labor hours. The Madalilangko Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V W Rent 250,000 770,000 15,000 14,500 7,000 Repairs 100,000 120,500 23,000 30,000…
Rakotan Co establishes the following standards for the costs of 1 unit of its product. The standard production overhead costs per unit are based on direct-labor hours. Calculation for standard per unit cost is as follows: Table 1 attached During December 2020, Rakotan Co purchased 30,000 kg of direct material at a total cost of $246,000. The total wages for December were $260,000, 75% of which were for direct labor. Wesley Co manufactured 9,500 units of product during December 2020, using 28,400 kg of the direct material purchased in December and 18,900 direct-labor hours. Actual variable and fixed overhead cost were $200,000 and $150,000, respectively. The scheduled production for the month was 10,000 units. Table 2 attached Assume that the rest of the variances had been calculated and remarked correctly. For each of the variances on the list above : 1. Provide a brief explanation of the causes of variance 2. State who is responsible for the variance
company manufactures a certain part for use in its assembly operation. cost per unit for 5,000 units of part is a total of P26.00 from the following: direct labor is P12.00; direct materials is P2.00; fixed factory overhead is P7.00 and variable factory overhead is P5.00. Company B offered company A 5,000 units for P27.00 per unit. If company A accepts some of its facilities presently used to manufacture the part could be used to help with the manufacture of part, thus saving P40,000.00 in relevant cost in its manufacture and eliminating P3.00 per unit of the fixed factory overhead. find the savings if any from buying instead of making.
The Universal Solutions Co. (USC) operates several plants that process raw material X and yield three outputs: rough nut, natural nut, and flexi nut. The first two outputs are solids, measured in tons, and the third is a liquid, also measured in tons. The company assumes for its costing purposes that all three outputs are jointly produced until a single split off point, at which each output appears separately and is then further processed individually. For April 2019, the following data apply: • Rough-150 tons produced and sold at $ 900 per ton. Separable costs beyond the split off point are S8,750. This produces Rough 1, used by the paper industry. • Natural-50 tons produced and sold at $ 7,500 per ton. Separable costs beyond the split off point are $5,250. This produces Natural 1, used by the construction industry. • Flexi-800 tons produced and sold at $65 per ton. Separable costs beyond the split off point are $10,500. This produces Flexi 1, used in the production of detergents. USC…
XYZ Motors Corporation has identified activity centers to which overhead costs are assigned. The cost pool amounts for these centers and their selected cost drivers for 2018 are as follows: Activity Center - Utilities: Cost - P600,000 Cost Driver - 30,000 machine hours Activity Center - Scheduling sand setups Cost - P546,000 Cost Driver - 390 setups Activity Center - Material handling Cost - P1,280,000 Cost Driver - 800,000 kilos of materials The company's products and other operating statistics are as follows: Product A: Direct costs - P40,000 Machine hours - 15,000 Number of setups - 65 Kilos of material - 250,000 Number of units produced - 20,000 Direct labor hours - 16,000 Product B: Direct costs - P40,000 Machine hours - 5,000 Number of setups - 190 Kilos of material - 150,000 Number of units produced - 10,000 Direct labor hours - 9,000 Product C: Direct costs - P45,000 Machine hours - 10,000 Number of setups - 135 Kilos of material - 400,000 Number of units produced -…
Superior Fender uses a standard cost system and provide the following information

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