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 2, Problem 2.21E
Computing and interpreting manufacturing unit costs. Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification for its
- 1. Compute the manufacturing cost per unit for each product produced in July 2017.
Required
- 2. Suppose that, in August 2017, production was 150 million units of Supreme, 190 million units of Deluxe, and 220 million units of Regular. Why might the July 2017 information on manufacturing cost per unit be misleading when predicting total manufacturing costs in August 2017?
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Students have asked these similar questions
Minnesota Office Products (MOP) produces three different paper products at its Vaasa
lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated
production line at the plant. It currently uses the following three-part classification for its
manufacturing costs: direct materials, direct manufacturing labor, and manufacturing
overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $150
million ($15 million of which are fixed). This total amount is allocated to each product line on
the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for
July 2017 are as follows:
Supreme
89
16
48
125
Answer:
Deluxe
57
26
78
150
Regular
60
8
24
140
Total
206
50
150
415
Direct material costs
Direct manufacturing labor costs
Manufacturing overhead costs
Units produced
What are the total variable manufacturing costs of the Deluxe paper product?
Minnesota Office Products (MOP) produces three different paper products at its Vaasa
lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated
production line at the plant. It currently uses the following three-part classification for its
manufacturing costs: direct materials, direct manufacturing labor, and manufacturing
overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $150
million ($15 million of which are fixed). This total amount is allocated to each product line on
the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for
July 2017 are as follows:
Supreme
89
16
48
125
Answer:
Deluxe
57
26
78
150
Regular
60
8
24
140
Direct material costs
Direct manufacturing labor costs
Manufacturing overhead costs
Units produced
What are the total manufacturing costs of the Regular paper product?
Total
206
50
150
415
Minnesota Office Products (MOP) produces three different paper products at its Vaasa
lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated
production line at the plant. It currently uses the following three-part classification for its
manufacturing costs: direct materials, direct manufacturing labor, and manufacturing
overhead costs. Total manufacturing overhead costs of the plant in July 2017 are $150
million ($15 million of which are fixed). This total amount is allocated to each product line on
the basis of the direct manufacturing labor costs of each line. Summary data (in millions) for
July 2017 are as follows:
Direct material costs
Direct manufacturing labor costs
Manufacturing overhead costs
Units produced
Supreme
89
16
48
125
Answer:
Deluxe
57
26
78
150
Regular
60
8
24
140
What is the manufacturing cost per unit of the Supreme paper product?
Total
206
50
150
415
Chapter 2 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3QCh. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9QCh. 2 - What are three different types of inventory that...
Ch. 2 - Distinguish between inventoriable costs and period...Ch. 2 - Define the following: direct material costs,...Ch. 2 - Describe the overtime-premium and idle-time...Ch. 2 - Define product cost. Describe three different...Ch. 2 - What are three common features of cost accounting...Ch. 2 - Prob. 2.16MCQCh. 2 - Comprehensive Care Nursing Home is required by...Ch. 2 - Frisco Corporation is analyzing its fixed and...Ch. 2 - Year 1 financial data for the ABC Company is as...Ch. 2 - The following information was extracted from the...Ch. 2 - Computing and interpreting manufacturing unit...Ch. 2 - Direct, indirect, fixed, and variable costs....Ch. 2 - Classification of costs, service sector. Market...Ch. 2 - Classification of costs, merchandising sector....Ch. 2 - Classification of costs, manufacturing sector. The...Ch. 2 - Variable costs, fixed costs, total costs. Bridget...Ch. 2 - Variable and Fixed Costs. Consolidated Motors...Ch. 2 - Variable costs, fixed costs, relevant range. Gummy...Ch. 2 - Prob. 2.29ECh. 2 - Cost drivers and functions. The representative...Ch. 2 - Total costs and unit costs, service setting....Ch. 2 - Total and unit cost, decision making. Gayles...Ch. 2 - Inventoriable costs versus period costs. Each of...Ch. 2 - Computing cost of goods purchased and cost of...Ch. 2 - Cost of goods purchased, cost of goods sold, and...Ch. 2 - Flow of Inventoriable Costs. Renkas Heaters...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Cost of goods manufactured, income statement,...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Interpretation of statements (continuation of...Ch. 2 - Income statement and schedule of cost of goods...Ch. 2 - Terminology, interpretation of statements...Ch. 2 - Labor cost, overtime, and idle time. David...Ch. 2 - Missing records, computing inventory costs. Ron...Ch. 2 - Comprehensive problem on unit costs, product...Ch. 2 - Prob. 2.46PCh. 2 - Cost classification; ethics. Paul Howard, the new...Ch. 2 - Prob. 2.48P
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