Question 5rame Limited makes three products: A, B and C.The budget for the following three months was as follows:Sales unitsSales price per unitVariable cost per unit10ABC1,0001,5002,000€31€20€10€10€8€4However, the machine which is used in the production of all three products has malfunctioned. A temporary repair job has been done, but thetotal machine hours available for the next three months (until the replacement machine arrives) has been reduced to 4,800 hours.Each unit of product A requires 3 machine hours, each unit of Product B requires 1 machine hour and each unit of Product C requires 0.75 hours.On this basis, for the next three months, the product that Frame Limited will prioritise in relation to production isProductUnder the revised plan, the production and sales of Product A will beunits.

The objective of the question is to determine which product Frame Limited should prioritize in…

Answered: Question 5 rame Limited makes three…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company manufactures one product (A) for which budgeted details for the forthcoming period are as follows: Product A £ per unit Materials Labour (£16 per hour) 6 32 Production overhead of £60,000 is absorbed on a labour-hour basis. The budgeted output is 8,000 units of product A. The company adds a mark up of 20% to total production cost in order to determine its unit selling prices. What is the selling price per unit of product A? OA £54.60 OB. £19.50 OC. £45.43 OD. £25.67
PROBLEM 7 (MAKE OR BUY) A company at present has been buying a component called X', used in its finished product. Purchasing cost of component X is Rs. 10 per unit. The company has a normal capacity of 40,000 machine hours, and the budgeted fixed cost for the period is Rs. 1,60,000. The sales price of finished product is Rs. 100 per unit. The detailed manufacturing cost of one unit of finished product at normal capacity is as under: Direct Material (Including Component x) Direct Labour (2 hrs. @ Rs. 8) Rs. 50.00 Rs. 16.00 Rs. 10.00 Rs. 76.00 Manufacturing Overhead Cost (1 Machine hr. @ Rs. 10) Total Direct material cost of the company includes cost of four units of component X used in the finished product. The company has been considering to manufacture its own component 'X'. The product designing department has prepared the following estimation of cost of producing one unit of component 'X'. Direct Material Rs.3.00 Direct Labour 0.25 DLH @ Rs. 8 Manufacturing Overhead 0.25 Machine…
Rockport Corporation uses the cost formula Y- $4,800+ $0.40X for the maintenance cost, where X is machine-hours. The August budget is based on 9,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: O $4,800 O $8,400 O $3,600 O $1,200
2.3 REQUIRED Use the information provided below to determine the optimum mix of products that should be produced by Volex Limited. Also indicate the total contribution that would be earned. INFORMATION Volex Limited has only 2 500 machine hours available to produce three products viz. Product A, Product B and Product C. The following budgeted information relates to the three products for January 2024: Product A Product B R60 R75 R36 R30 4 hours 5 hours 280 units 300 units Sales price per unit Variable costs per unit Machine hours required per unit Estimated sales demand Product C R90 R60 2.5 hours 320 units
QUESTION 1 Bradman Ltd has the following budgeted unit sales figures for the six months from July 2005: July 800 August 600 September 700 October 900 November 1,000 December 900 The company makes and sells one product only, the unit costs and selling price of which are: Selling price N$70 Material A 2 kilos at N$5 per kilo N$10 Material B 1.5 kilos at N$6 per kilo N$9 Labour 2 hours at $10 per hour N$20 Variable overhead $8 per hour N$16 The following information is also available: Customers are allowed one month’s credit. Production takes place in the month of sale. Closing stocks of finished product are equal to 10% of the next month’s sales. Materials are purchased in the month before use and are paid for two months after purchase. Wages and variable overhead are paid for in the month of production. Fixed overhead is N$3,000 per month (including depreciation of N$500) payable in the month incurred. The opening cash balance at 31 August is expected to be N$20,000 in…
B E F G H K N P Q Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August September 24,500 units 24,700 units October 24,600 units November 26,400 units December 24,500 units The company wants to maintain monthly ending inventories of Jurislon equal to 30% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $4.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The desired ending inventory of Jurislon for September is:
The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: Sales commissions Shipping Advertising Executive salaries Depreciation on office equipment Other Monthly Fixed Cost $50,700 $ 60,700 $ 20,700 $ 40,700 Variable Cost Per Deb Sold $ 0.97 $ 1.47 $ 0.27 All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the company has budgeted to sell 15,700 Debs in February, then the total budgeted fixed selling and administrative expenses for February is:
Question 1 QVC Company produces kitchen cabinets at its factory. The following relates to the production of the kitchen cabinets for the period ending December 2020. Production (units) Sales (units) Fixed production cost Fixed Selling overhead Budgeted Actual 75,000 80,000 72,500 77,500 $750,000 $781,250 $562,500 $562,500 The fixed production overhead was absorbed at a pre- determined rate per unit produced. Each kitchen cabinet was sold for $450. Required: At the beginning of January 2020, there was opening stock of 4,375 units valued at $262,500; this includes fixed production overhead of $43,750. c) Prepare the reconciliation statement as at December 31, 2020.
Task 6. The following are consumed for the production of one unit: ➤ 18 kg of material A (price 1 € / kg and 3 m²) material B (price 2 € / m²) Direct labour per unit of product Estimated (planned) variable overheads per year Responsibility centre 14,000, € 1: Direct labour 70,000 h ===== ===== Responsibility centre 21 000, € Responsibility centre 1: 20 hours; rate 0,30€/h Responsibility centre 2: 30 hours; rate 0,50€/h Calculates: 1. variable production costs per unit 2. unit cost of production 3. full cost of one unit 2: Direct labour 180 000 h Estimated (planned)fixed overheads and general operating expenses per year Production costs - 100,000 € Selling expenses -30 000 € Administration expenses -15 000 €
You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the just ended period, details of which follow below: K Materials 7kg at K35.00 245.00 Labour 20 hours at K12.00 240.00 Variable overheads 20 hours at K8.00 160.00 Fixed overheads 20 hours at K15.00 300.00 945.00 Selling price 1,500.00 Profit…
You have collected the standard cost card for one unit of the ‘Zeus’ which was in operation in the just ended period, details of which follow below: K Materials 7kg at K35.00 245.00 Labour 20 hours at K12.00 240.00 Variable overheads 20 hours at K8.00 160.00 Fixed overheads 20 hours at K15.00 300.00 945.00 Selling price 1,500.00 Profit…
Saved antcring overhead s budgeted to be $33,000 plus $6 per unit produced. What Is budgeted manufacturing overhead for AuguUst? 32 Sylerh tas brecast production for the next three months as follows: July 6,500 units, August 8,200 units, September 9,100 units. Monthly Mutole Choice S82.200 $I2.000 $9.200 SE7500

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS