15. When producing tables, a company incurs the following costs: $30 for screws, $6,500 for wood, $80 for wood stain, $5,000 paid to janitors who clean the production facilities, $2,100 paid to employees who saw and prepare wood for production, and $1,600 for depreciation on equipment. How much factory overhead cost would need to be allocated to the tables produced?
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- The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
- Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $555,000; assembly-line workers, $187,000; security guards, $55,000; and plant supervisor, $137,000. What is the total of Guaranteed’s direct labor cost?4. Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Costs Variable / Fixed Product / Period Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)Jensen Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs $5.25 $12.00 $2.75 $6.00 $26.00 $2,500 of the fixed factory overhead costs associated with the production of this product are common fixed costs. Wells Company has offered to sell 1,000 units of the same part to Jensen Corporation for $21 per unit. Jensen should: Select one: O a. Buy the part, because this would save the company $5.00 per unit. O b. Make the part, because this would save the company $1.00 per unit. O c. Make the part, because this would save the company $2,500 annually. O d. Buy the part, because this would save the company $2,500 annually.
- Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs: Direct material ______$5/kg Direct labor_________$10/hour Total Manufacturing overhead __________________$30000 The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost). 1.Describe the basic financial statements , their purpose and their importance to various internal and external users. Clearly discuss which users are most interested in which financial statement and why. 2. Form question one above considering all the manufacturing costs are fixed calculate the Breakeven point both in unit and quantity using the contribution and equation approach. How many units is the company…Simplex Company has the following estimated costs for next year: Direct materials $15,000 Direct labor $55,000 Sales commissions $75,000 Salary of production supervisor $35,000 Indirect materials $5,000 Advertising expense $11,000 Rent of factory equipment $16,000 Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year. If overhead in applied on the basis of machine hours, the overhead rate per hour will be:Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. A. Lumber used to construct decks ($12.00 per square foot) B. Carpenter labor used to construct decks ($10 per hour) C. Construction supervisor salary ($45,000 per year) D. Depreciation on tools and equipment ($6,000 per year) E. Selling and administrative expenses ($35,000 per year) F. Rent on corporate office space ($34,000 per year) G. Nails, glue, and other materials required to construct deck (varies per job)
- ABC, Inc. has the following information available regarding costs at various levels of monthly production: Production volume 8,000 12,000 Direct materials $75,000 $70,000 Direct labor 56,000 80,000 Packaging materials 22,000 30,000 Supervisors' salaries 14,000 14,000 Depreciation on plant and equipment 11,000 11,000 Maintenance 31,000 45,000 Utilities 15,000 21,000 Insurance on plant and equipment 2,600 2,600 Property taxes on plant and equipment…The materials handling charge for ABC Corp. is $0.50 per pound of finished product. What is the materials handling charge for a job that produced 10,000 units at a weight of 6 pounds per unit?XYZ Corporation uses ABC costing to allocate the overhead costs and these are the rates for each activity. $15 per batch for Setup: $50 per hour for Engineering and $10 per direct labor hour for Maintenance. Expected batches are 300, machine hours are 250, engineering hours are 1,000, and direct labor hours are 1,200. Given the information above, what is the total overhead cost that is allocated for Job 1? O $114,500 O $126,500 O $139,000 O $100,000