Kindly help me with the attached image. Thank you Activity Sheet 05Name: Maria Angelica MallariRating:Course / Year / Section: BSBAMM, 2-3The following are the unit costs of making and selling an item at a volume of 30,000 units per month(which represents the company's capacity):Manufacturing:Direct MaterialsP6Direct Labor12Variable Overhead2Fixed Overhead4Selling and administrative:8VariableFixed10Assume the company has 300 units left over from last year which have small defects. Theseunits will have to be sold at a reduced price as scrap or thrown away. This would have no effecton the company's other sales. The variable selling and administrative costs would have to beincurred to sell the defective units.Required:Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify whichdecision is more favorable.

To analyze the result of the change in any activity or process by the management a differential cost…

The following are the unit costs of making and selling an item at a volume of 30,000 units per month (which represents the company's capacity): Manufacturing: Direct Materials P 6 Direct Labor 12 Variable Overhead 2 Fixed Overhead 4 Selling and administrative: Variable Fixed Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. Required: Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify which decision is more favorable. 800⁰ 10

The following are the unit costs of making and selling an item at a volume of 30,000 units per month (which represents the company's capacity): Manufacturing: Direct Materials P 6 Direct Labor 12 Variable Overhead 2 Fixed Overhead 4 Selling and administrative: Variable Fixed Assume the company has 300 units left over from last year which have small defects. These units will have to be sold at a reduced price as scrap or thrown away. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. Required: Prepare a Differential Cost Analysis (Refer to Slide 13 of Lecture) then justify which decision is more favorable. 800⁰ 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead Units manufactured Standard Quantity and Cost 7 pounds @ $9 per pound 3 DLH @ $17 per DLH 3 DLH @ $13 per DLH Actual Results 59,200 pounds @ $9.10 per pound 25,000 hours @ $17.60 per hour $ 334,000 8,400 units Exercise 21-8 (Algo) Standard cost per unit, total budgeted and actual costs, and total cost variance LO P2 (1) Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for June production. (3) Compute total actual cost for June production. (4) Compute total cost variance for June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute total budgeted cost for June production. Total budgeted (standard) cost
2. A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total number Output (units) machine of purchase of set ups hours orders A 100 500 50 5 B 75 700 40 10 175 1200 90 15 The annual overheads are as under: Volume related activity costs RO 20000 Set up related costs RO 15000 Purchase related costs RO 35000 Total RO 70000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method 本本本本本本**本本本本本本本*
Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $144,000 Number of setups 120 Ordering materials 14,400 Number of orders 900 Machining 103,950 Machine hours 9,450 Receiving 22,770 Receiving hours 1,035 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 5,600 11,200 Number of setups 80 40 Number of orders 300 600 Machine hours 5,400 4,050 Receiving hours 345 690 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned Model X $fill in the blank 1 Model Y $fill in the blank 2 2. Determine the total overhead assigned to each model using…
Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $147,000 Number of setups 120 Ordering materials 12,000 Number of orders 600 Machining 109,200 Machine hours 9,100 Receiving 31,680 Receiving hours 1,320 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 4,200 8,400 Number of setups 80 40 Number of orders 200 400 Machine hours 5,200 3,900 Receiving hours 440 880 REQUIRED:- 2. Determine the total overhead assigned to each model using the two most expensive activities. The costs of the two relatively inexpensive activities are allocated to the two expensive activities in proportion to their costs. Round interim…
1. Allocating activity cost pools to products Burgandy Corporation makes plastic and wooden picture frames. The company has assigned $107,000 in monthly manufacturing overhead costs to two cost pools as follows: $67,000 to power costs, and $40,000 to production set-up costs. Additional monthly data are provided below: Sales revenue Direct materials.. Direct labor.... Machine hours.. Production runs Units produced and sold. Plastic Wooden Frames Frames $254,000 $179,000 $101,000 $38,360 $53,360 $92,720 107,420 7,580 35 29,000 65 59,000 Power costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires. (a) Allocate manufacturing overhead from the activity cost pools to each product line. (b) Compare the total per-unit cost of manufacturing plastic frames and wooden frames. (c) On a per-unit basis, which product line appears to be most profitable?
Approximately Relevant ABC Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $132,000 Number of setups 120 Ordering materials 19,800 Number of orders 900 Machining 115,500 Machine hours 10,500 Receiving 26,400 Receiving hours 1,200 Silven produces two models of cell phones with the following expected activity demands: Model X Model Y Units completed 4,000 8,000 Number of setups 80 40 Number of orders 300 600 Machine hours 6,000 4,500 Receiving hours 400 800 Required: 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned Model X Model Y 2. Determine the total overhead assigned to each model using the two most expensive activities. The…
A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total Output (units) of purchase orders machine number of hours set ups A 750 1200 85 15 B 450 800 115 10 1200 2000 200 25 The annual overheads are as under: Volume related activity costs RO 55000 Set up related costs RO 120000 Purchase related costs RO 85000 Total RO 260000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method
Cost per Unit Direct materials. Direct labor Shakti Company budgets overhead cost of $108,000 for the year. The company reports the following for its standard and deluxe models. Standard $ 14 20 Deluxe $ 25 29 Required 1 Required 2 Saved Complete this question by entering your answers in the tabs below. 1. Compute a single plantwide overhead rate assuming the company allocates overhead cost based on 7,200 direct labor hours. 2. The standard model uses 2 direct labor hours per unit and the deluxe model uses 3 direct labor hours per unit. Compute overhead cost per unit for each model. 3. Compute the total product cost per unit for both models. Required 3 >
Cost of Goods Manufactured Refer to Brief Exercise 2-1. For next year, Bob’s Bistro predicts that 50,000 units will be produced with the following total costs: Direct materials ? Direct labor Variable overhead Fixed overhead $ 100,000 60,000 260,000 Next year, Bob’s Bistro expects to purchase $195,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Beginning Ending Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials decreased by $3,000? Which line items on the statement of cost of goods manufactured would be affected and in what direction (increase or decrease)? Direct Materials Inventory $9,500 5,000 Work-in-Process Inventory $4,500 .
Cornerstones of Cost Management 4th Ed. - Chapter 4 Scenario IV: Goodmark Company produces two types of birthday cards: scented and regular. Expected product data for the coming year are given below. Overhead costs are identified by activity. Scented Cards Regular Cards Total Units produced 20,000 200,000 - Prime costs $160,000 $1,500,000 $1,660,000 Direct labor hours 20,000 160,000 180,000 Number of setups 60 40 100 Machine hours 10,000 80,000 90,000 Inspection hours 2,000 16,000 18,000 Number of moves 180 120 300 Overhead costs: Setting up equipment $240,000 Moving materials 120,000 Machining 200,000 Inspecting products 160,000 Required: 1. Answer the following questions: a. Calculate the activity consumption ratios for Scented cards (round to two decimal places). Setups: Moving materials: Machining: Inspection: b. If only one rate based on direct labor hours were used to assign overhead, Scented Cards would receive…
Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow: Numbers of employees Production capacity (units) Space occupied (square feet) Five-year average of $1's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ P1 P2 $ 2. Production capacity in units 3. Space occupied 4. Five-year average of $1 service used 627,450✔ 845,550✔ 5. Estimated direct overhead costs
Task 6. The following are consumed for the production of one unit: ➤18 kg of material A (price 1 € / kg and 3 m²) material B (price 2 € / m²) Direct labour per unit of product Responsibility centre 1: 20 hours; rate 0,30€/h ==== Responsibility centre 2: 30 hours; rate 0,50€/h Calculates: Estimated (planned) variable overheads per year Responsibility centre 1: 14,000, € Direct labour 70,000 h Responsibility centre 2: 21 000, € Direct labour 180 000 h 1. variable production costs per unit 2. unit cost of production 3. full cost of one unit Estimated (planned) fixed overheads and general operating expenses per year Production costs - 100,000 € Selling expenses -30 000 € Administration expenses -15 000 €