Table shows information related to cost incurred to produce 500 units. (All values in OMR) Total Amount in OMR Direct Materials 6000 Insurance of factory building 1000 Salary of production manager 1500 Direct Labor 9000 Power 2500 Royalties 500 Rent of factory building 4000 Normal Spoilage 250 On the basis of above information, what will be the estimated cost to produce 2000 units? Select one: a. None of the option b. OMR 79500 c. OMR 90500 d. OMR 99000

Table shows information related to cost incurred to produce 500 units. (All values in OMR) Total Amount in OMR Direct Materials 6000 Insurance of factory building 1000 Salary of production manager 1500 Direct Labor 9000 Power 2500 Royalties 500 Rent of factory building 4000 Normal Spoilage 250 On the basis of above information, what will be the estimated cost to produce 2000 units? Select one: a. None of the option b. OMR 79500 c. OMR 90500 d. OMR 99000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 18E: A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price...

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X Ltd. wants to replace one of its old machines. Three alternative machines namely M1, M2 and M3 are under its consideration. The costs associated with these machines are as under: M, M2 M3 Direct material cost p.u. 50 100 150 Direct labour cost p.u. 40 70 200 Variable overhead p.u. 10 30 50 Fixed cost p.a. 2,50,000 1,50,000 70,000 Compute the cost indifference points for these altematives.
Which of the following is total fixed cost, if cost per unit is OMR 45, Total direct materials cost is OMR 20000, Direct Labor cost is OMR 30000, Royalties paid OMR 2000, Power used for OMR 5000 and total units produced is 1500. Select one: a. 10500 b. 37500 c. None of the options d. 22500
According to following information, Number of units produced is 20000. Variable Total Costs Fixed Costs Costs Material used ? in Production 48000 OMR 50000 Labor used in 2500 Production 47500 Production Facilities cost 18000 ? 25000 What will be the estimated cost of 10000 units? Select one: a. OMR 85000 O b. NONE OF THE OPTIONS O c. OMR 73750 O d. OMR 62500
The MNL Manufacturing Corp has two production cycles. Choosing Production cycle A involves P54/unit of materials and choosing Production cycle B involves P60/unit of materials. However whatever production cycle, the fixed cost will amount to P40,000.00. What is true regarding the above? A. P40,000 is relevant in production cycle A B. P56/unit of materials is relevant in production cycle A. C. P56/unit and P40,000 is relevant in production cycle B D. P56/unit and P40,000 is relevant in production cycle A
Table shows information related to cost incurred to produce 500 units. (All values in OMR) Total Amount in OMR Direct Materials 6000 Insurance of factory building 1000 Salary of production manager 1500 Direct Labor 9000 Power 2500 Royalties 500 Rent of factory building 4000 Normal Spoilage 250 On the basis of above information, what will be the estimated cost to produce 2000 units? Select one: a. None of the option O b. OMR 79500 O c. OMR 90500 O d. OMR 99000
Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information: • Direct material cost per unit Direct labor cost per unit • Variable manufacturing cost per unit Total fixed manufacturing costs.. • Variable selling and administration cost per unit Total fixed selling and administration costs.. .$3,000 .$2,250 ..S1,000 .S1,750,000 ..$1,250 .$550,000 If the company requires a rate of return 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage. c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $5,500 and the company investing $5,000,000 to purchase equipment needed produce 500…
A company is considering a special order for 1,000 units to be priced at 8.90 (the normal price would be 11.50). The order would require specialized materials costing 4.00 per unit. Direct labor and variable factory overhead would cost 2.15 per unit. Fixed factory overhead is 1.20 per unit. However, the company has excess capacity, and acceptance of the order would not raise total fixed factory overhead. The warehouse, however, would have to add capacity costing 1,300. Which of the following is relevant to the special order? a. 11.50 b. 1.20 c. 7.35 d. 8.90
The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments. Please answer question 2 thank you very much.
The internal manufacturing cost per unit of a component is as follows – Direct Material $5.00 Direct Labour $10.00 Fixed costs $15.00 Total costs $30.00 (a) Given the information above, if the company buys the component, it would however have to pay $17.00, but would still have to meet its fixed cost. Should the company make or buy the component? (b) Based on your answer in (a) above name two factors that can influence the company to buy the product. 2. (a) Describe two (2) methods for allocating support costs to departments. (b) Explain why support costs are allocated to departments.
Problem 6-18 (Algo) Relevant Cost Analysis in a Variety of Situations [LO6-2, LO6-3, LO6-4] Andretti Company has a single product called a Dak. The company normally produces and sells 87,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 7.50 8.00 2.90 5.00 ($435,000 total) 2.70 2.50 ($217,500 total) $28.60 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 113,100 Daks each year without any increase in fixed. manufacturing overhead costs. The company could increase its unit sales by 30% above the present 87,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What is the financial…
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $83,000 $42,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative $20,600 32,200 $52,800 $14,800 23,600 $38,400 $ 5,400 expense Fixed administrative expense Total administrative 27,800 $33,200 expense Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total…
akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Up eBook Show Me How Print Item High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) %24 per unit Total fixed cost b. Based on part (a), estimate the total cost for 115,000 units of production. Total cost for 115,000 units Check My Work 4 more Check My Work uses remaining. Previous Next