what is the impact on the companies overall net operating income?
Q: A business is operating at 90% capacity and is currently purchasing a part which is being used in…
A: Number of units required = 30,000 Cost of purchasing per unit = 15 Variable cost of manufacturing…
Q: The Wood Division of Wildhorse Products Inc. manufactures wood mouldings and sells them externally…
A: Formula: Minimum transfer price = Variable cost + ( External selling price - variable cost )
Q: Falcon Co. produces a single product. Its normal selling price is $26 per unit. The variable costs…
A: Special offer does not affect the fixed cost if the special order is under the capacity. So…
Q: What is the net advantage (disadvantage) of purchasing the part rather than making it? Ahringer…
A: Answer- P 20,000 Working Making Cost per unit Direct Material 19.10 Direct Labour…
Q: Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000…
A: Operating income is the income generated by the company through its daily operating activities. It…
Q: Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: In decision making, lower costs are preferred as in this case, making is cost-efficient. Fixed costs…
Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…
A: Solution a: A differential analysis is based on comparing the relevant cost of making the product…
Q: Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable costs…
A: Incremental analysis: Incremental analysis refers to the analysis of differential revenue that…
Q: A customer has requested that Lewelling Corporation fill a special order for 3,200 units of product…
A: Incremental revenue=Special order units×Price per unit=3,200×$28=$89,600
Q: manufacturing overhead costs. if the special order is accepted, variable selling costs would…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: EA customer has requested that Lewelling Corporation fill a special order for 2100 units of product…
A: Accepting or rejecting a special order is the part of management accounting which determine the…
Q: A company is considering a special order for 1,000 units to be priced at $8.90 (the normal…
A: Relevant costs and Relevant revenues of the special order are the costs that are to be incurred for…
Q: Wehrs Corporation has received a request for a special order of 8,300 units of product K19 for…
A: Solution: Revenue from special order = 8300*$45.20= $375,160 Variable cost of special order = 8300 *…
Q: A company receives a special one-time order for 3,000 units of its product at $15 per unit. The…
A: Given: One time order = 3,000 Order for = $15 Unit selling price = $20 Production cost = $13.50…
Q: ABC Company has received a request for a special order of 6,000 units of product A for $21.20 each.…
A: Increase (decrease) in operating income if special order is accepted = (Sales price per unit -…
Q: A company has already incurred $5,000 of costs in producing 6,000 units of Product XY. Product XY…
A: Given: Current selling price = $15 Further processing cost = $8 Selling price after further…
Q: Luca Inc. has received a special order for 2,000 units of its product at a special price of $75. The…
A: Management accounting is widely used by managers to determine the differential costs of the product…
Q: Roger Corp., which has experienced excess production capacity, received a special offer for its…
A: Answer - Calculation of Profit / Loss when company accept the special offer : Particulars…
Q: If the special order is excepted what is the impact on the companies overall net operating income?
A: An entity having spare capacity can accept special order at a price that is greater than the…
Q: The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for…
A: Given, Variable cost is = $ 25 per unit Fixed cost is = $ 8 per unit Division to transfer = 4300…
Q: A company receives a special order for 200 units that requires stamping the buyer’s name on each…
A: Given information is: A company receives a special order for 200 units that requires stamping the…
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: Variable factory overhead costs per unit = Direct labor costs x 16% Fixed factory overhead per unit…
Q: Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Vak Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using…
A: Minimum price = Total avoidable fixed cost + Variable costs Total avoidable fixed cost = $37,400 -…
Q: Helix Company has been approached by a new customer to provide 2,000 units of its regular product at…
A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…
Q: Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for…
A: In special order decision making we should not consider Fixed cost that remains constant.
Q: Almond has received a special order for 11,000 units of its product at a special price of $60. The…
A:
Q: Holly Corp. has received a request for a special order of 9,000 units of product Z74 for $46.50…
A: We should follow incremental approach
Q: Mooran Corporation has been asked by a customer to fill a special order for 9,000 units of product…
A: Cost volume profit analysis is used by the management for decision-making. The methods include…
Q: Sunshine's Surfboards usually sells the Beach Sunnies for $100. The variable production cost is $50,…
A: Corporations must constantly make short-term decisions such as whether or not to approve special…
Q: Helix Company has been approached by a new customer to provide 3,200 units of its regular product at…
A:
Q: Ross has received a special order for 10,000 units of its product at a special price of $15. The…
A: Contribution margin income statement: It is a kind of income statement which reports the sales,…
Q: Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable costs…
A: Relevant cost per unit = Total variable cost - variable selling cost = $16 - $2 = $14 per unit
Q: A customer has requested that Lewelling Corporation fill a special order for 2,700 units of product…
A: Given that: Special order units = 2700 units Price per unit = $33 per unit
Q: CM Manufacturing has provided the following unit costs pertaining to a component they manufacture…
A: The fixed manufacturing overhead is unavoidable. Therefore, it should not consider for the Make or…
Q: You are the Sales Manager for your company and you are evaluating orders from two customers but can…
A: Total Contribution margin on first order = No. of units x selling price x contribution margin ratio…
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: Make or buy Decision The act of making a strategic decision between producing an item internally or…
Q: Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of…
A: Relevant income of the special order is calculated by reducing relevant expenses from the relevant…
Q: John has received a special order for 100 units of its product at a special price of $2,100. The…
A: Special orders are usually one-time and do not attract a fixed cost. So, if the firm has the…
Q: Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs…
A: Impact on net income is the difference between the Incremental revenue and incremental variable…
Q: A company contemplating the acceptance of a special order has the following unit cost behavior,…
A: Fixed cost for special order is irrelevant because fixed cost will not change with the special…
Q: Wehrs Corporation has received a request for a special order of 9,800 units of product K19 for…
A: There are two types of costs incurred in business. One is fixed costs, which do not change with…
Q: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of…
A: Note: In the special order question, firstly the relevant cost for the special order is calculated.…
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- Average Cost per UnitDirect materials . . . . . . . . . . . . . . . . . . . . . . . . . $7.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00Variable manufacturing overhead . . . . . . . . . $1.50Fixed manufacturing overhead . . . . . . . . . . . $5.00Fixed selling expense . . . . . . . . . . . . . . . . . . . $3.50Fixed administrative expense . . . . . . . . . . . . . $2.50Sales commissions . . . . . . . . . . . . . . . . . . . . . . $1.00Variable administrative expense . . . . . . . . . . $0.50 Answer all questions independently.Required:1. For financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units?2. For financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units?3. For financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units?4. For financial accounting…1. Supply the missing data in the following cases, each case is independent of the others. Schedule of Cost of Goods ManufacturedDirect materials . . . . . . . . . . . . . . . . . . . . . .P 4,500Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . ?Manufacturing overhead . . . . . . . . . . . . . . . 5,000Total manufacturing costs . . . . . . . . . . . . . . 18,500Beginning work in process inventory . . . . . 2,500Ending work in process inventory . . . . . . . . ?Cost of goods manufactured . . . . . . . . . . . 18,000 Income StatementSales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P 30,000Beginning finished goods inventory . . . . . 1,000Cost of goods manufactured . . . . . . . . . . . 18,000Goods available for sale . . . . . . . . . . . . . . . ?Ending finished goods inventory . . . . . . . . ?Cost of goods sold . . . . . . . . . . . . . . . . . . . . 17,000Gross margin . . . . . . . . . . . . . . . . . . . . . . . . 13,000Selling and administrative…Yates Manufacturing Company incurs the following manufacturing costs and expenses during the month of May. 1. Assembly line wages 2. Raw materials used directly in product 3. Depreciation on office equipment 4. Property taxes on factory building 5. Rent on factory building 6. Sales commissions 7. Depreciation on factory equipment 8. Factory utilities 9. Wages for factory maintenance workers 10. Advertising 11. Indirect materials used in production 12. Factory manager's salary Complete the following matrix by placing an X markunder the appropriate headings. Cost Direct Direct Manufacturing Period Item Materials Labor Overhead Costs 1. 2.
- 20. Direct material is a ________. a. Selling and distribution cost b. Manufacturing cost c. Administration cost d. Factory overhead-S average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $7.10 $4.10 $ 1.60 $ 5.10 $ 3.60 $ 2.60 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $ 1.10 $ 0.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-- Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 11,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 11,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 12,000 units? 4. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (For all…Edney Company employs standard absorption system for product costing. The standard cost of its product is as follows: Raw materials ........................................................P14.50 Direct labor (2 DLH x P8)..................................... 16.00 Manufacturing overhead (2 DLH x P11) .........22.00 The manufacturing overhead rate is based upon a normal activity level of 600,000 direct labor hours. Edney planned to produce 25,000 units each month during the year. The budgeted annual manufacturing overhead is Variable................... P3,600,000 Fixed.......................... 3,000,000 During November, Edney produced 26,000 units. Edney used 53,500 direct labor hours in November at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during November was P572,000. What are the variable manufacturing overhead variances for November?
- A Cothing Manufacturing Company provides the following unit costs associated with one of its products: Direct materials. Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Operating costs Total $160 50 55 32 30 $327 What are the period costs per unit associated with the Product? O A $30 O B. $33 OC. $100 O D. $17Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period= Activity Cost Pool Activity Cost Activity Cost Driver Machine setup $900,000 2,500 setup hours Material handling 820,000 4,000 material moves Machine operation 400,000 20,000 machine hours The following data are for the production of single batches of two products, Mirlite and Subdue: Mirlite Subdue 60,000 25,000 400 250 800 250 Gallons produced Direct labor hours Machine hours Direct labor cost Direct materials cost Setup hours Material moves $10,000 $7,500 $360,000 $150,000 Direct materials Direct labor Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. Round cost per gallon to two decimal places. Product Costs $ 15 60 Manufacturing overhead: Machine setups Material handling Mirlite 12 35 0 x $ 0 x 0 x 0 x Subdue 0 x 0x 0x 0xIf the prime cost 35 350 ID., Manufacturing overhead 6 000 ID., beginning finished goods inventory 25 500 ID .ending finished goods inventory 25 000 ID., beginning work in process inventory 2 000 ID., ending work in process inventory 3 000 ID., the manufactured cost are
- If the prime cost 35 350 ID., Manufacturing overhead 6 000 ID,beginning finished goods inventory 25 500 ID .ending finished goods inventory 25 000 ID.,beginning work inproces inventory 2 000 ID., ending work inproces inventory 3 000 ID.,the manufactured cost areVariable costs: Direct materials $0.15 Direct labor 0.06 Variable overhead 0.11 Fixed overhead 0.30 Total cost $0.62You have the following data: Cost of goods sold Direct labour Direct materials Cost of goods manufactured Work-in-process ending Finished goods ending Manufacturing overhead Which of the following represents the beginning work-in-process inventory? O $25. $15. O $20. $55. $70 $20 $15 $80 $10 $15 $30