Total Production Costs $230,000 Level of Activity (Units Produced) Month July 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January o06 3,300 200,000 February 210,000 Мarch 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (ese o55.000 units )

Total Production Costs $230,000 Level of Activity (Units Produced) Month July 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January o06 3,300 200,000 February 210,000 Мarch 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (ese o55.000 units )

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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he following information relates to product A: Quantity Unit Price Cost Per Unit Material (kg) 5 £15 £75 Labour (hours) 4 £20 £80 Budgeted production 1250 Units Actual production 1000 Units Actual inputs were as follows: Material 6000 Kgs £100,000 Labour 3800 hours £70,000 A). Calculate Material Usage Variance. Choose one from the following: A. £10,000 Favourable B. £10,000 Unfavourable C. £15,000 Favourable D. £15,000 Unfavourable
Quantity 9,900 Revenue $ 1,615,000 Variable manufacturing cost 947,925 Variable Selling, General and Administrative cost 99,800 Contribution margin $ 567,275 Fixed manufacturing cost 237,600 Fixed Selling, General and Administrative cost 122,000 Operating profit $ 207,675 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) 11,300 Revenue $ 1,748,800 Variable manufacturing cost 1,157,572 Variable Selling, General and Administrative cost 112,840 Contribution margin $ 478,388 Fixed manufacturing cost 244,080 Fixed Selling, General and Administrative cost 168,000 Operating profit $ 66,308 Variable overhead is applied on the basis of machine-hours. The standard cost sheet follows: Standard production costs Direct materials 5.00 kilo grams @ $ 6.95 $ 34.750 Direct labor 0.50 direct labor-hours @ 39.50 19.750 Variable overhead…
Pendennis plc had the following budget and actual figures for Product ZN6 during April: Output Sales revenue Raw materials Labour Fixed overheads Profit Budget A. £12,500 favourable B. £13,000 adverse C. £13,000 favourable D. £12,500 adverse 2,200 units £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19,800 What is the direct labour rate variance for Product ZN6 for the month of April? Actual £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8,800 2,500 units
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Product Data Model A Model B Units produced per year 10,000 100,000 Prime costs $153,000 $1,530,000 Direct labor hours 143,000 310,000 Machine hours 21,000 196,000 Production runs 40 60 Inspection hours 900 1,300 Maintenance hours 8,000 92,000 Overhead costs: Setup costs $300,000 Inspection costs 209,000 Machining 318,200 Maintenance 260,000 Total $1,087,200 2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.) Model A: overhead cost per unit Model B: overhead cost per unit Note: Be sure to complete both tables below. Activity Driver Activity Rate Setups Production runs per run Inspections Inspection hours per hour Machining Machine hours per hour Maintenance Maintenance hours per hour Overhead assignment Model A Model B Setups Inspections Machining…
10 In July, TPM Co. incurred total costs of $60,000 and made 6000 units. In December it produced 4000 units and total costs were $40,000. What is the variable cost per unit? a. S12.00 b. $15.00 c. S10.00 d. $8.00
During January 2021, XYZ Corp. produced 100,000 units of Product A with costs as follows: Materials P 6,000,000 Labor 3,300,000 Variable factory overhead 2,500,000 Fixed factory overhead 1,500,000 Total manufacturing costs 13,300,000 Selling and administrative costs incurred during the month were: Variable selling and administrative 3,000,000 Fixed selling and administrative 2,000,000 5,000,000 Selling price P200 per unit XYZ Corp. uses the JIT system. It does not keep inventories in stock. What amount should be considered product cost per unit under variable costing? Group of answer choices P 118 P 133 P 148 P 183
Difference A company has numerous products and currently absorbs its production overheads based on labour hours; it has the following information: G H All products Budget (units) 2,400 3,000 Labour hours (£10/ hour) 1 hour 0.2 hours 1,000,000 Material cost / unit £2.00 £3.50 Material requisitions 4 8 4,000 Number of batches 6 3 10,000 Overheads are budgeted as £2,500,000 for production set-up related and £1,200,000 for materials handling and storage related. Required: Calculate the unit cost for products G and H if the company was to adopt activity based costing and comment on the difference.
The Cincinnati power plant that services all manufacturing departments of Eastern Mountain Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms: (Click the icon to view the budgeted data.) The expected monthly costs for operating the power plant during the budget year are $20,000: $8,000 variable and $12,000 fixed. Read the requirements. Requirement 1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if (a) the rate is calculated based on practical capacity and costs are allocated based on practical capacity and (b) the rate is calculated based on expected monthly usage and costs are allocated based on expected monthly usage? (Round the budgeted rate to the nearest cent.) Budgeted rate per hour: Loretta Bentley Melboum Eastmoreland Total (a) C… Requirements 1. Assume that a single cost pool is used for the power plant costs. What budgeted…
32.This is Cost Accounting. Explain briefly and answer. The following information pertains to Lannister Manufacturing Corporation’s Product Y: Annual Demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning Inventory of Product Y - 0 - At present, the company produces 2,250 units of Product X per production run, for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product Y If the EOQ model is used, what should be the number of production runs? (round to whole number)
Sales (17,500 units) $1,750,000 Production costs (23,000 units): Direct materials $851,000 Direct labor 409,400 Variable factory overhead 204,700 Fixed factory overhead 135,700 1,600,800 Selling and administrative expenses: Variable selling and administrative expenses $248,100 Fixed selling and administrative expenses 96,000 344,100 If required, round interim per-unit calculations to the nearest cent. *** I only need assistance with the ones that are blank. Could you also leave the steps on how to solve it, please? a. Prepare an income statement according to the absorption costing concept. Shawnee Motors Inc. Absorption Costing Income Statement For the Month Ended August 31 Sales $1750000 Cost of goods sold Gross profit $ Selling and administrative expenses 344100 Income from operations $ b. Prepare an income statement according to the variable costing concept. Shawnee Motors Inc.…