Manufacturing/Materials costs $200,000 General/Administrative costs 50,000 Direct-labor costs Other overhead costs 170,000 60,000 Annual production demand 10,000 units
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A company produces several product lines. One of those lines generates the following annual cost and production data: The company adds 40% to its production cost in selling to the retailer.
The retailer in turn adds a 50% profit margin when selling to its customers. How much would it cost a retailer to buy 100 units of the product?
(a) $4800
(b) $6720
(c) $7200
(d) $1008
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- Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost ₱075,000 Selling expenses ₱316,000 Administrative expenses ₱314,000 What is the cost of direct materials? Show solution Group of answer choices ₱175,000 ₱193,750 ₱220,000 ₱150,000Conversion cost - br700,000 Direct material cost - 240,000 Factory overhead cost - 20% of total manufacturing cost Compute the amount of factory overhead cost, direct labor cost and prime costSales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit $30,000 $2.00 $45,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product X: O $20,000 Product X 400 $60,000 $50,000 $25,000 $15,000 $20,000 Product Y 600 $60,000 $15,000 $10,000 $35,000 Total 1,000 $120,000 $40,000 $25,000 $55,000 $50,000 $5,000
- Direct materials $ 78,000 Direct labor $ 40,000 Manufacturing overhead $ 18,000 Selling expenses $ 21,000 Administrative expenses $ 33,000 Calculate the following: Product cost = direct labor + direct material + factory overhead = 136,000 Period cost = Conversion cost Prime costSales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit Product A 400 $60,000 Product B 600 $60,000 $25,000 $15,000 $10,000 $15,000 Total 1,000 $120,000 $40,000 $25,000 $25,000 $30,000 $55,000 $50,000 $5,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product A:The following costs have been estimated based on sales of 30,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 300,000 100 % Direct labor 250,000 100 % Manufacturing overhead 250,000 50 % Selling and administrative 150,000 25 % What selling price (rounded to two decimal places) will yield a contribution margin of 40%? $43.75 $59.38 $39.58 $33.25
- Direct and Indirect Costs Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces andSells 20,000 units, its average costs per unit are as follows:Averagecost perUnitDirect Materials $ 7.00Direct Labor $ 4.00Variable manufacturing overhead $ 1.50Fixed manufacturing overhead $ 5.00Fixed selling expense $ 3.50Fixed administrative expense $ 2.50Sales commissions $ 1.00Variable administrative expense $ 0.501 Assume the cost object is units of productiona What is the total direct manufacturing cost incurred to make 20,000 units?b What is the total indirect manufacturing cost incurred to make 20,000 units.2 Assume the cost object is the Manufacturing Department and that its total output is 20,000 units.a How much total manufacturing cost is directly traceable to the Manufacturing Department?b How much total manufacturing cost is an indirect cost that cannot be easily traced to theManufacturing Department?3 Assume the cost object is the company's various…Total Manufacturing Costs ₱325,000 Applied Overhead Costs, 75% of direct labor cost ₱075,000 Selling expenses ₱316,000 Administrative expenses ₱314,000 What is the conversion cost? Show solution Group of answer choices ₱75,000 ₱100,000 ₱131,250 ₱175,000Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin Agency Line BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a 3 different complete service cost allocation report with details using the following methods: 1. Direct Method IT Services
- Direct materials per unit Direct labor per unit Variable overhead per unit Variable selling and administrative expenses $80 per unit $60 per unit $25 per unit $50 per unit $100,000 Fixed overheads Fixed selling and administrative expenses $300,000 If the company produced and sold 50,000 units of Product M during the year, then the total period cost under variable costing would be: a. $8,250,000 b. $2,900,000 c. $2,800,000 d. $2,750,000Identify the semi-variable costs: 10,000 units 18,000 units Materials $15,000 $27,000Labour $13,000 $19,400Rent $11,500 $11,500Selling overheads $30,000 $46,000 Question 2 options: 1) materials and labour 2) labour and rent 3) rent and selling overheads 4) labour and selling overheadsGiven the following information, determine the markup per unit. Direct materials $76,000 Direct labor $130,000 Factory overhead $56,500 Selling and administrative expenses $43,000 Estimated units to be produced and sold 15,000 Total assets $200,000 Desired rate of return 10% Normal selling price per unit $21.70