(See attached file for full problem description) --- Exercise 3-26 Health Foods Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information pertains to the blending department for January.
Which of the following is not a cost-based transfer price? A) Standard unit-level cost B) Actual cost C) Standard unit-level cost plus a markup D) Full cost (the product's unit-level cost plus an assigned portion of the higher-level costs)
Pohl Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: Variable overhead c
Dexter Company uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Company's manufacturing overhead costs for last period is given below: Actual hours worked 40,000 DLHs Standard hours allowed for actual produc
Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company had budgeted its fixed manufacturing overhead cost at 62,100 for the month and its level of activity at 3,200 MHs. The actual total fixed manufacturing overh
Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Standard Price Standard Quantity or Rate Cost Direct materials
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 3.2 hours Standard variable overhead rate $12.70 per hour The following data pertain to operations for the last month: Actual hours 1,600 hours Ac
The following materials standards have been established for a particular product: Standard quantity per unit of output 9.6 meters Standard price $14.80 per meter The following data pertain to operations concerning the product for the last month: Actual materials purchased 2,600 meters Actual cost of mate
Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Standard Price Standard Quantity or Rate Cost Direct materi
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52. Reference: 10-11
I am having trouble calculating variable cost per unit. For example if I am selling hamburgers. My raw materials cost on an annual basis is $650 per 1000 units sold annually. What i am having trouble with is if my annual units rise to 6000 units per year sold, how can I accurately calculate my variable cost. I know my costs will
Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is 3.00 per direct labor-hour; the budgeted fixed factory overhead is 66,000 per month, of which 10,000 is factory depreciation. Reference: 9-14 If the budgeted direct labor time
Sparks Company has a cash balance of 7,500 on April 1. The company must maintain a minimum cash balance of 6,000. During April, cash receipts of 48,000 are planned. Cash disbursements during the month are expected to total 52,000. Ignoring interest payments, during April the company will need to borrow: 6,000 4,000
Within the relevant range, the amount of variable cost per unit: a. differs at each activity level b. remains constant at each activity level c. increases as activity increases d. decreases as activity increases
Carter Company has projected sales and production in units for the second quarter of next year as follows: April May June Sales 60,000 40,000 50,000 Production 50,000 50,000 60,000 Required: a. Cash production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the
The Fisheries company shipped 6,000 tons of halibut at a cost of $5,800 in March, and 9,000 tons for $8,200 in April. Assuming that this activity is within the relevant range, the expected shipping cost for shipping 7,800 tons would be: (Points: 15) a. $6,510 b. $9,750 c. $6,460 d. $6,420
I need to determine what is the contribution margin of Managerial Accounting and what is the difference between the contribution approach to the income statement and the traditional approach to the income statement?
Define the purpose of working capital. How does extending credit affect working capital requirements and the cash conversion period (cycle)? Evaluate the consequences of inventory costs on Working Capital needs and the Cash Conversion Period.
Managerial accounting Absorption and Variable Costing; Production Constant, sales fluctuate: Sandi Scott obtained a patent on a small electronic device and organized Scott Products, Inc. in order to produce and sell the device. During the first month of operations, the device was very well received on the market, so Ms.
BYP 9-2 Prasad & Green Inc. manufactures ergonomic devices for computer users. Some of their more popular products include glare screens (for computer monitors), keyboard stands with wrist rests, and carousels that allow easy access to magnetic disks. Over the past 5 years, they experienced rapid growth, with sales of all produc
Adsorption and Varible Costing; Production Constant, sales fluctuate: Sandi Scott obtained a patent on a small electronic device and organized scott products, Inc. in order to produce and sell the device. During the first month of operations, the device was very well received on the market, so Ms. Scott looked forward to a he
A company that makes organic fertilizer has supplied the following data: Bags produced and sold 240,000 Sales revenue 1,896,000 Variable manufacturing expense 804,000 Fixed manufacturing expense 520,000 Variable selling and administrative expense 180,000 Fixed selling and administrative expense 270,000
Black Company's sales are 600,000, its fixed expenses are 150,000, and its variable expenses are 60% of sales. Based on this information, the margin of safety is: 90,000 225,000 190,000 240,000
Given the following data: Selling price per unit 1.8 Variable production cost per unit 0.2 Fixed production cost 2,660 Sales commission per unit 0.2 Fixed selling expenses 1,260 The break-even point in dollars is: 2,800 5,040 3,920 3,420
Carsten Wedding Fantasy Company makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related 0.75 per guest Complexity-related 33.44 per tier Order-related 8
The following costs were incurred in January: Direct materials 33,000 Direct labor 27,000 Manufacturing overhead 73,000 Selling expenses 13,000 Administrative expenses 21,000 Conversion costs during the month totaled: 167,000 100,000 60,000 133,000
A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold 280,000 Sales revenue 2,072,000 Variable manufacturing expense 1,134,000 Fixed manufacturing expense 436,000 Variable selling and administrative expense 238,000 Fixed selling and administrative exp
Dukes Company used a predetermined overhead rate this year of 1.7 per direct labor hour, based on an estimate of 22,000 direct labor hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred 36,150 Actual direct labor hours worked 20,500 The und
Eakle Company's quality cost report is to be based on the following data: Supervision of testing and inspection activities 29,000 Warranty repairs and replacements 11,000 Net cost of scrap 55,000 Test and inspection of incoming materials 25,000 Technical support provided to suppliers 67,000 Disposal
Esmail Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs: Wages and salaries 370,000 Other expenses 230,000 Total 600,000