Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,900 units. Per Unit Total Direct materials $16 Direct labor $8 Variable manufacturing overhead $14 Fixed manufacturing overhead $414,400 Variable selling and administrative expenses $7 Fixed selling and administrative expenses $51,800 The company uses a 44% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,900 units. Per Unit Total Direct materials $16 Direct labor $8 Variable manufacturing overhead $14 Fixed manufacturing overhead $414,400 Variable selling and administrative expenses $7 Fixed selling and administrative expenses $51,800 The company uses a 44% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...

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Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
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; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per unit): ProductABCSelling price$ 80$ 56$ 70Variable expenses: Direct materials24159Other variable expenses242740Total variable expenses484249 Contribution margin$ 32$ 14$ 21 Contribution margin ratio40 % 25% 30% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required:1. Calculate the contribution margin per pound of the constraining resource for each product.2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third?3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials?
Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,400 units of Product F and 1,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year. Estimated Overhead Activity Cost Pool Machine setups Purchase orders Order size Cost $ 13,200 $ 85,680 $ 26,840 Overhead cost per unit Product F Product F 120 setups 882 orders 1,270 hours Product G Expected Activity Product G Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.) 80 setups 1,638 orders 1,170 hours Total 208 setups 2,520 orders 2,448 hours
Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint Corporation's anticipated annual volume of 26,500 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $8 Fixed selling and administrative expenses (a) Per Unit The company uses a 40% markup percentage on total cost. Compute the total unit cost. $14 $6 $10 Total cost per unit $ Total $291,500 $159,000
Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint Corporation's anticipated annual volume of 26,500 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $8 Fixed selling and administrative expenses The company uses a 40% markup percentage on total cost. (a) Your answer is correct. Compute the total unit cost. Total cost per unit $ (b) eTextbook and Media Per Unit $14 $6 $10 Compute the target selling price. Target selling price $ 55 Total $291,500 $159,000 Attempts: 1 of 5 used
Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat mat is follows: Production Information for Standard Heat Mat Production Information Amount Monthly production capacity 25,000 units Current level of production 18,000 units Normal selling price per unit $23 per unit Variable manufacturing costs $5 per unit Variable selling and administrative expenses $2 per unit Fixed manufacturing costs (allocated) $4 per unit Fixed selling and administrative expenses (allocated) $2 per unit During current month, the company received an offer to sell 5,000 lights to an exporter for $13 per unit. The variable selling and administrative expenses per unit will be reduced by $1 as this is a one-off offer and some of the selling expenses would not be payable on this offer. Acceptance of this order does not affect the pricing policy in the domestic market. How much would be the profit or loss from the acceptance of this offer? Group…
Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat mat is follows: Production Information for Standard Heat Mat Production Info Amount Monthly production capacity 20,000 units Current level of production 15,000 units Normal selling price per unit $25 per unit Variable manufacturing costs $5 per unit Variable selling and administrative expenses $3 per unit Fixed manufacturing costs (allocated) $4 per unit Fixed selling and administrative expenses (allocated) $2 per unit During current month, the company received an offer to sell 4,000 lights to an exporter for $15 per unit. The variable selling and administrative expenses per unit will be reduced by $1 as this is a one-off offer and some of the selling expenses would not be payable on this offer. Acceptance of this order does not affect the pricing policy in the domestic market. How much would be the profit or loss from the acceptance of this offer? Group of…
Tiara Corporation manufactures and sells scarfs. Price and cost data for the company are provided below:Selling price per unit$50Variable costs per unitManufacturing costsDirect material15Direct labour8Variable manufacturing overhead12Variable selling and administrative costs3Annual fixed costsFixed manufacturing overhead$2,640,000Fixed selling and administrative costs$1,560,000Forecasted annual sales (units)500,000Required:(a)What is Tiara Corporation’s break-even point in dollars? (b)How many units would Tiara Corporation have to sell in order to earn a before tax profit of $480,000? (c)What is the company’s margin of safety (in dollars)?(d)If the company’s direct material costs increase by 20 percent and the fixed selling and administrative costs decrease by 20 percent, how many units will the company have to sell next year to reach its break-even point
Daston Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,600 units of Product Fand 3,000 units of Product G during the current year. Data relating to the company's three activity cost pools are given below for the current year. Activity Cost Pools Total Cost Total Activity Product F Product G Total Machine setups $ 14,960 130 setups 90 220 setups Purchase orders $ 63,360 650 orders 1,110 orders 1,760 orders Order size $ 32,240 1,280 hours 1,200 hours 2,480 Required: Using the activity-based costing approach, determine the overhead cost per unit for each product
The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.75 Units Produced 39,000 Units Sold 35,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $20,000 Question Content Area Prepare an income statement under variable costing method. Appliance AppsIncome Statement $- Select - - Select - $- Select - - Select - $- Select - - Select - - Select - $- Select - Question Content Area Prepare a reconciliation to the income under the absorption method. Appliance AppsReconciliation $- Select - - Select - $- Select -