TotalAmountUnitsSalesVariable Costs:31,250Per Unit$445,313$14.25Direct Materials$125,0004.00=Direct Labor$28,0000.90=Variable Manufacturing Overhead$66,2502.12=Sales Commissions$15,6250.50=ShippingVariable BillingTotal Variable Costs$3,1250.10$3130.01$238,3137.63Contribution Margin$207,0006.62Fixed Costs:Fixed Manufacturing OverheadAdvertisingSales and Admin. SalariesFixed BillingTotal Fixed CostsNet Operating Income (Loss)40,00016,80087,30010,000154,100$52,900F. Using the budgeted contribution margin income statement in part E. above, calculate the following:a. Breakeven in units:b. Operating Leverage Multiplier:Given a sales volume increase of 8%, operating income will increase by:c. Percent:d. Dollars:#N/A#N/A#N/A#N/A

Name: TotalAmountUnitsSalesVariable Costs:31,250Per Unit$445,313$14.25Direc
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: TotalAmountUnitsSalesVariable Costs:31,250Per Unit$445,313$14.25Direct Materials$125,0004.00=Direct Labor$28,0000.90=Variable Manufacturing Overhead$66,2502.12=Sales Commissions$15,6250.50=ShippingVariable BillingTotal Variable Costs$3,1250.10$3130.

Break-even pointThe break-even point is the amount and units of sales which provided no profit or no…

Business

Accounting

Total Amount Units Sales Variable Costs: 31,250 Per Unit $ 445,313 $ 14.25 Direct Materials $ 125,000 4.00 Direct Labor $ 28,000 0.90 Variable Manufacturing Overhead $ 66,250 2.12 Sales Commissions $ 15,625 0.50 Shipping $ 3,125 0.10 Variable Billing $ 313 0.01 Total Variable Costs $ 238,313 7.63 Contribution Margin $ 207,000 6.62 Fixed Costs: Fixed Manufacturing Overhead 40,000 Advertising 16,800 Sales and Admin. Salaries 87,300 Fixed Billing 10,000 Total Fixed Costs 154,100 Net Operating Income (Loss) $ 52,900 Using the budgeted contribution margin income statement in part E. above, calculate the following: a. Breakeven in units: b. Operating Leverage Multiplier: Given a sales volume increase of 8%, operating income will increase by: c. Percent: d. Dollars: #N/A #N/A #N/A #N/A

Total Amount Units Sales Variable Costs: 31,250 Per Unit $ 445,313 $ 14.25 Direct Materials $ 125,000 4.00 Direct Labor $ 28,000 0.90 Variable Manufacturing Overhead $ 66,250 2.12 Sales Commissions $ 15,625 0.50 Shipping $ 3,125 0.10 Variable Billing $ 313 0.01 Total Variable Costs $ 238,313 7.63 Contribution Margin $ 207,000 6.62 Fixed Costs: Fixed Manufacturing Overhead 40,000 Advertising 16,800 Sales and Admin. Salaries 87,300 Fixed Billing 10,000 Total Fixed Costs 154,100 Net Operating Income (Loss) $ 52,900 Using the budgeted contribution margin income statement in part E. above, calculate the following: a. Breakeven in units: b. Operating Leverage Multiplier: Given a sales volume increase of 8%, operating income will increase by: c. Percent: d. Dollars: #N/A #N/A #N/A #N/A

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

See similar textbooks

Similar questions

Question Content Area Compute conversion costs given the following data: direct materials, $376,200; direct labor, $200,400; factory overhead, $179,400 and selling expenses, $48,400. a. $555,600 b. $131,000 c. $756,000 d. $379,800
Total product cost per unit under absorption costing = Units produced = 1000Direct Materials = $ 6Direct Labor = $10Fixed overhead =$ 6000Variable overhead = $ 6Fixed Selling & Admin = $ 2000Variable Selling & Admin $ 2
Sales 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
According to following information, which of the following is the total cost function in the form of Y = F+V*X? Number of units produced is 18,000. Fixed Variable Cost Cost Material used in Production 88,000 40,000 Labour used in Production 42,000 38,500 Production Facilities cost 37,000 29,500 TOTAL COST 167,000 108,0OC Select one: • a. Y = 167,000+V*6 Ob. Y 167,000+V*18 c. Y = 275,000+V*108 O d. Y = 108,000+V*275
Problem 7-16 (Algo) Comparing Traditional and Activity-Based Product Margins [LO7-1, L07-3, LO7-4, LO7-5] Hi-Tek Manufacturing, Inc., makes two types of industrial component parts-the B300 and the T500. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statement $ 1,657,500 1,224,620 432,880 620,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating loss $4 (187,120) Hi-Tek produced and sold 60,500 units of B3o0 at a price of $19 per unit and 12,700 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: в300 T500 Total Direct materials $ 400,600 $ 120,400 $ 162,700 $ 42,000 563,300 162,400 498,920 Direct labor Manufacturing overhead Cost of goods sold $…
Sales 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:
ing information: Cost per Cost per Unit Period Direct materials $ 4.80 $ 3.80 $ 1.50 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 10,800 Sales commissions $ 1.80 $ 0.60 Variable administrative expense Fixed selling and administrative expense $ 6,800 If 4,000 units are sold, the total variable cost is closest to:
Subject: Cost management & accounting Q.3 Compute Factory Cost:Direct Material = Rs. 50,000Conversion Cost = 150,000Prime Cost = 100,000 Q.4 Compute Factory Cost:Prime Cost = Rs. 250,000Direct Material = 100,000Conversion Cost = 380,000 Q.5 Compute: i) Prime Cost ii) Factory CostMaterial = Rs. 75,000 ( 80% Direct )Labour = 100,000 ( 20 % Indirect )Conversion Cost = 180,000 (Indirect Material and Labour are included)
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost per Unit $ 5.00 $ 2.90 $ 1.25 $1.00 $ 0.55 Cost per Period $21,000 $7,500 If 4,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Cost pool $58,200 $88,500 Total cost in cost pool O $7,200 pool 1 pool 2 pool 3 Compute allocated capacity costs for product Alpha. $18,000 $7,500 $63,000 $45,000 not enough information need to know the total number of cost driver units Number of cost driver units product Alpha 20 20 30 -- product Beta 30 5 12
P Flag question According to following information, which of the following is the total cost function in the form of Y = F+V*X ? Number of units produced is 16500. Fixed Variable Total Cost Cost Costs Material used in Production 87,000 57,000 144,000 Labour used in Production 60,000 59,500 119,500 102,500 367,000 Production Facilities cost 55,000 48,500 TOTAL COST 202,000 165,000 Select one: O a. Y = 202,000+V*16.5 O b. Y = 367,000+V*10 O c. Y = 367,000+v*16.5 O d. Y = 202,000+V*10
Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.