Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 10, Problem 10.26E
Account analysis method. Gower, Inc., a manufacturer of plastic products, reports the following
| Account | Classification | Amount |
| Direct materials | All variable | $300,000 |
| Direct manufacturing labor | All variable | 225,000 |
| Power | All variable | 37,500 |
| Supervision labor | 20% variable | 56,250 |
| Materials-handling labor | 50% variable | 60,000 |
| Maintenance labor | 40% variable | 75,000 |
| Depreciation | 0% variable | 95,000 |
| Rent, property taxes, and administration | 0% variable | 100,000 |
Gower, Inc., produced 75,000 units of product in 2017. Gower’s management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018.
- a. Direct materials prices in 2018 are expected to increase by 5% compared with 2017.
- b. Under the terms of the labor contract, direct manufacturing labor wage rates are expected to increase by 10% in 2018 compared with 2017.
- c. Power rates and wage rates for supervision, materials handling, and maintenance are not expected to change from 2017 to 2018.
- d. Depreciation costs are expected to increase by 5%, and rent, property taxes, and administration costs are expected to increase by 7%.
- e. Gower expects to manufacture and sell 80,000 units in 2018.
- 1. Prepare a schedule of variable, fixed, and total manufacturing costs for each account category in 2018. Estimate total manufacturing costs for 2018.
Required
- 2. Calculate Gower’s total manufacturing cost per unit in 2017, and estimate total manufacturing cost per unit in 2018.
- 3. How can you obtain better estimates of fixed and variable costs? Why would these better estimates be useful to Gower?
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Cost of goods manufactured, income statement, manufacturing company. Consider the following
account balances (in thousands) for the Peterson Company:
Beginning of
2017
End of
2017
Peterson Company
Direct materials inventory
Work-in-process inventory
Finished-goods inventory
Purchases of direct materials
23,000
21,000
26,000
25,000
13,000
20,000
74,000
Direct manufacturing labor
Indirect manufacturing labor
Plant insurance
22,000
17,000
7,000
11,000
Depreciation-plant, building, and equipment
Repairs and maintenance-plant
Marketing, distribution, and customer-service costs
General and administrative costs
3,000
91,000
24,000
1. Prepare a schedule for the cost of goods manufactured for 2017.
2. Revenues for 2017 were $310 million. Prepare the income statement for 2017.
The following cost incurred by Lucky corporation for October 2019 were as follows: Direct Materials used, P20,000 Indirect materials used, P1,000 Direct labor, P9,000 Indirect labor, P5,000 Other factory cost, P5,000 Selling expenses,P10,000 Administrative expenses, P12,000 Question: How much is the total product cost?
a. P62,000
b. P50,000
c. P29,000
d. P40,000
Plz answer fast without plagiarism and don't copy answer plz
Chapter 10 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 10 - What two assumptions are frequently made when...Ch. 10 - Describe three alternative linear cost functions.Ch. 10 - What is the difference between a linear and a...Ch. 10 - High correlation between two variables means that...Ch. 10 - Name four approaches to estimating a cost...Ch. 10 - Describe the conference method for estimating a...Ch. 10 - Describe the account analysis method for...Ch. 10 - List the six steps in estimating a cost function...Ch. 10 - When using the high-low method, should you base...Ch. 10 - Describe three criteria for evaluating cost...
Ch. 10 - Define learning curve. Outline two models that can...Ch. 10 - Discuss four frequently encountered problems when...Ch. 10 - Prob. 10.13QCh. 10 - All the independent variables in a cost function...Ch. 10 - Multicollinearity exists when the dependent...Ch. 10 - HL Co. uses the high-low method to derive a total...Ch. 10 - A firm uses simple linear regression to forecast...Ch. 10 - In regression analysis, the coefficient of...Ch. 10 - A regression equation is set up, where the...Ch. 10 - What would be the approximate value of the...Ch. 10 - Estimating a cost function. The controller of the...Ch. 10 - Identifying variable-, fixed-, and mixed-cost...Ch. 10 - Various cost-behavior patterns. (CPA, adapted)....Ch. 10 - Matching graphs with descriptions of cost and...Ch. 10 - Account analysis, high-low. Stein Corporation...Ch. 10 - Account analysis method. Gower, Inc., a...Ch. 10 - Prob. 10.27ECh. 10 - Estimating a cost function, high-low method. Lacy...Ch. 10 - Linear cost approximation. Dr. Young, of Young and...Ch. 10 - Cost-volume-profit and regression analysis....Ch. 10 - Regression analysis, service company. (CMA,...Ch. 10 - High-low, regression. May Blackwell is the new...Ch. 10 - Learning curve, cumulative average-time learning...Ch. 10 - Learning curve, incremental unit-time learning...Ch. 10 - High-low method. Wayne Mueller financial analyst...Ch. 10 - High-low method and regression analysis. Market...Ch. 10 - High-low method; regression analysis. (CIMA,...Ch. 10 - Regression, activity-based costing, choosing cost...Ch. 10 - Interpreting regression results. Spirit...Ch. 10 - Cost estimation, cumulative average-time learning...Ch. 10 - Cost estimation, incremental unit-time learning...Ch. 10 - Regression; choosing among models. Apollo Hospital...Ch. 10 - Multiple regression (continuation of 10-42). After...Ch. 10 - Cost estimation. Hankuk Electronics started...Ch. 10 - Prob. 10.45PCh. 10 - Interpreting regression results, matching time...Ch. 10 - Purchasing department cost drivers, activity-based...Ch. 10 - Purchasing department cost drivers, multiple...
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