Total production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and 60, 0 units of budgeted output, respectively. Because of the need for additional facilities , budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed costs for 50,000 units. How much is Jordan's budgeted variable cost per unit of output?

Total production costs for Jordan, Inc. are budgeted at P2,300,000 and P2,800,000 for 50,000 and 60, 0 units of budgeted output, respectively. Because of the need for additional facilities , budgeted fixed costs for 60,000 units are 25 percent more than budgeted fixed costs for 50,000 units. How much is Jordan's budgeted variable cost per unit of output?

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

Oathall Ltd, which manufactures a single product, is considering whether to use marginal or absorption costing to report its budgeted profit in its management accounts. The following information is available: £/unit Direct materials 4 Direct labour 15 19 Selling price 50 Fixed production overheads are budgeted to be £300,000 per month and are absorbed on an activity level of 100,000 units per month. For the month in question, sales are expected to be 100,000 units although production units will be 120,000 units. Fixed selling costs of £150,000 per month will need to be included in the budget as will the variable selling costs of £2 per unit. There are no opening stocks. Required: Prepare the budgeted profit and loss account for a month for Oathall Ltd using absorption costing. Clearly show…
The data to the right pertain to the operating budget of a manufacturing company. Compute the following. (a) contribution margin (b) contribution rate (c) break-even point in sales dollars --- Sales Fixed cost $115,000 Total variable cost $1,039,600 Total cost Net income (a) The contribution margin is $ (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) $2,260,000 (c) The break-even point in sales dollars is $ (Round to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) $1,154,600 $1,105,400 %. (b) The contribution rate is (Round to the nearest whole number as needed. Round all intermediate values to six decimal places as needed.)
Abernathy Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit. Actual Variable Cost is $450,800 and Budgeted Variable is $432,000. What is the Static Budget Variance of Variable Cost? Question 27 options: $18,800 F $18,800 U None of the above
A company’s flexible budget for 19,000 units of production showed sales, $87,400; variable costs, $43,700; and fixed costs, $24,000. The variable costs expected if the company produces and sells 24,000 units is?
5. A company is at present working at 90% of its capacity and producing 13,500 units per annum. It operates a flexible budgetary control system. The following figures (excluding material and labour cost) are obtained from its budget : 90% 100% (a) Sales 15,00,000 3,00,500 16,00,000 (b) Fixed expenses (c) Semi-fixed expenses (d) Variable expenses Material and labour cost per unit are constant under present conditions. Profit margin is 10% at 90% 3,00,500 1,00,500 1,49,500 97,500 1,42,000 сaрacity. (i) You are required to determine the cost of producing an additional 1,500 units. (ii) What would you recommend for an export price for these 1,500 units taking into account that overseas prices are much lower than indigenous prices ? [ICWA, Inter.]
The following data have been extracted from the budgets of Kelvin Ltd,a company that manufacture and sells a single product $per unit Selling price Direct material cost Direct wages Variable overhead Fixed overhead 45 10 4 2.50 1.50 Fixed production overhead costs are budgeted at $400,000 per annum. Normal production levels are expected to be 200,000 units per annum. Actual Fixed Production overheads are $120,000 Budgeted administration costs are $120,000 per annum. The following pattern of sales and production is expected during 2003: Sales (units) Production (units) 60,000 70,000 You are required a. To prepare budgeted profit statements for the year using (i) (ii) Marginal Costing Absorption Costing b. To reconcile the profits for the year
2) Conner Hardware, Inc's static budget for the year is shown below: Sales (25,000 units) Cost of Goods Sold: Direct Material Direct Labor Overhead (includes $4 per unit Variable cost) Gross Profit Selling Expenses Sales Commissions (Variable) Rent (Fixed) Insurance (Fixed) General and administrative expenses Salaries (fixed) Rent (Fixed) Depreciation (Fixed) Sales Variable Cost: Direct Materials Direct Labor Variable OH Sales Commission Total Variable Cost Contribution Margin Fixed Cost: Fixed OH Rent Expense-Selling Insurance Expense Salaries Expense Rent Expense-General Prepare a flexible budget for Connor Hardware Inc. that shows a detailed budget for its static budget and its actual sales volume of 40,000 units. Use the contribution margin approach. Depreciation Expense Total Fixed Cost Income from Operations $150,000 300,000 175,000 25,000 units 50,000 90,000 35,000 100,000 40,000 60,000 $1,200,000 625,000 575,000 375,000 $ 200,000 40,000 units
The following details relates to the operations of a company for budgeted output of 10000units; selling price- GHC100, total variable cost- GH¢200000, and total fixed cost- GHC400000. At what quantity and value will the company breakeven? A. 5000units and GHC50000 B. 5000units and GHC5300 OC. 4500units and GHC45000 D. 4000unit and GHC40000
Your answer is partially correct. Indigo Company uses a flexible budget for manufacturing overhead based on direct labor hours. Budgeted variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.10 0.80 0.50 Budgeted fixed overhead costs per month are Supervision $4,800, Depreciation $1,440, and Property Taxes $960. The company believes it will normally operate in a range of 8,400-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2022 for the expected range of activity, using increments of 1,200 direct labor hours. (List variable costs before fixed costs.)
Vaughn Manufacturing produced 290000 units in 135000 direct labor hours. Production for the period was estimated at 300000 units and 150000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at O 145000 hours and 135000 hours O 135000 hours and 135000 hours O 145000 hours and 150000 hours O 150000 hours and 135000 hours
or the current year, Power Cords Corp. expected to sell 42,300 industrial power cords. Fixed costs were expected to total $1,651,500; unit sales price was expected to be $3,900; and unit variable costs were budgeted at $2,400.Power Cords Corp.'s margin of safety (MOS) in units is: Multiple Choice 49,099. 39,299. 41,199. 36,399. 32,799.
Please help me. Thankyou.