FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Alpha Ltd has the following information relating to its production activity for the year: Direct labour costs -- $931,200 Prime costs -- 3.5 times of overhead costs Conversion costs -- 2.5 times of overhead costs Compute the overhead and direct material costs for the Alpha Ltd. Show all your workings.arrow_forwardThe accounting records of Tacoma Company revealed the following costs: direct materials used, $170,000; direct labor, $350,000; manufacturing overhead, $400,000; and selling and administrative expenses, $220,000. Tacoma's product costs total:arrow_forwardIn the manufacture of 9,700 units of a product, direct materials cost incurred was $172,400, direct labor cost incurred was $107,300, and applied factory overhead was $43,900. What is the total conversion cost? a. $172,400 b. $323,600 c. $43,900 Od. $151,200arrow_forward
- Here are selected basic data for Boston Bracing Company: Estimated manufacturing overhead $253,500 Factory utilities $31,000 Estimated labor hours 35,000 Indirect labor $23,000 Actual direct labor hours 36,000 Sales commissions $53,800 Estimated direct labor cost $325,000 Factory rent $48,300 Actual direct labor cost $320,000 Factory property taxes $28,900 Factory depreciation $66,800 Indirect materials $33,700 If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs? Question 42 options: $285,500 $228,800 $262,500 $231,700arrow_forwardThe accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000. Dixon's product costs total:arrow_forwardThe accounting records of Dixon Company revealed the following costs: direct materials used, $290,000; direct labor, $475,000; manufacturing overhead, $381,000; and selling and administrative expenses, $210,000. What is Dixon's product costs total?arrow_forward
- The cost breakdown details submitted by Rane Machine Works, a supplier for Caravan Engineering, is reproduced in the table given below. Cost Elements Rane Machine Works (amounts in $) Material 8.00 Direct Labor 8.00 Fixed Overhead (@ 150% of direct labor) Manufacturing Cost (material + direct labor + fixed overhead) General & Administrative Overhead (@ 10% of manufacturing cost) Total Cost (manufacturing cost + general & administrative overhead) Profit (@ 10% of Total Cost) Price (total cost + profit) The supply manager at Caravan Engineering has asked two of his supply analysts to estimate the cost details and the cost breakdown given by Rane Machine Works. Supply analyst 1 estimates what the supplier costs should be (using a “should-cost” model), and after analysis, recommends that the supply manager bargain for a price that is based on a 25% reduction in the direct labor cost. Supply analyst 2…arrow_forwardRLW-II Enterprises estimated that indirect manufacturing costs for the year would be $75 million and that 15,000 machine-hours would be used. (a) Compute the predetermined indirect cost application rate using machine hours as the burden vehicle. (b) Determine the total cost of production for a product with direct material costs of $2 million, direct-labor costs of $2.5 million, and 200 machine-hours.arrow_forwardIn Mordica Company, total materials costs are $ 33,000, and total conversion costs are $ 54,000. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ enter a dollar amount rounded to 2 decimal places Conversion cost per unit $ enter a dollar amount rounded to 2 decimal places Compute total manufacturing costs. (Round answer to 2 decimal places, e.g. 2.25.) Total manufacturing cost per unit $ enter the Total manufacturing cost per unit in dollars rounded to 2 decimal placesarrow_forward
- Wildhorse Company accumulated the following standard cost data concerning product I-Tal. Direct materials per unit: 2.50 pounds at $4.40 per pound Direct labor per unit: 0.40 hours at $16.00 per hour Manufacturing overhead: Allocated based on direct labor hours at a predetermined rate of $20.00 per direct labor hour Compute the standard cost of one unit of product I-Tal. (Round answer to two decimal places (e.g., 2.75).) Standard cost $arrow_forwardRose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average Cost per Unit $12 Direct materials Direct labor 10 Indirect materials Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions 4 3 8 25 Using the cost data from Rose Company, answer the following questions: 1. If 10,000 units are produced, what is the variable cost per unit? 2. If 18,000 units are produced, what is the variable cost per unit? 3. If 21,000 units are produced, what are the total variable costs? 4. If 11,000 units are produced, what are the total variable costs?arrow_forwardConversion cost per unit equals $11.00. Total materials costs are $80500. Equivalent units of production for materials are 40250. How much is the total manufacturing cost per unit? $2.00. $13.00. $9.00. $11.00.arrow_forward
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