Homework Answers
1.
The activity base for service industries is most likely to be direct labor hours.
Correct option is (C)
2.
Factory depreciation expense is a conversion cost.
Correct option is (D)
3.
Direct labor is a prime cost.
Correct option is (B)
4.
Assigning indirect costs to specific jobs is completed by using the predetermined overhead rate.
Correct option is (C)
5.
Degree of operating leverage = Contribution margin/Net income
= 58,560/24,400
= 2.4
Increase in operating income = Increase in sales x Degree of operating leverage
= 5 x 2.4
= 12%
Correct option is (B)
6.
When fixed costs increase and all other variables remain unchanged, the contribution margin will remain unchanged.
Correct option is (D)
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.
Add Answer to:
Explanation not necessary The activity base for service industries is most likely to be A direct...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor,...
ncome Statements under The reporting of the costs of manufactured products, normally direct materials, direct labor, and factory overhead, as product costs.Absorption Costing and The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated...
28. Western Industries pays employees on a weekly basis on Tuesday for the week ended the...
28. Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employee's compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May follow: Non factory Sales $5,000 Administrative 10.000 Factory Direct Labor $25,000 Overtime premium 2,500 Indirect Labor 15,000 Excluding payroll taxes, how much of the accrued payroll on April 30 should be charged to Factory Overhead? a....
Which of the following is a likely advantage in activity-based costing (ABC)? An increase in the...
Which of the following is a likely advantage in activity-based costing (ABC)? An increase in the cost of accumulating, tracking, and assigning costs to products and services. An increase in the ability to trace indirect costs to specific activities. A decrease in the need to maintain accurate cost driver information. A decrease in the need to maintain accurate overhead cost information. Which of the following is true regarding activity-based costing (ABC)? Companies with a high proportion of non-unit-level costs should...
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect...
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect labor Factory depreciation $16,000 4,000 8,500 12,800 37,000 Direct labor Using the above information, total factory A) $53,000. B) $25,300. e above information total factory overhead costs would be: C) $78,300. D) $16,800. E) $12,800 ne overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Work in Process Inventory. B) Cost...
The following information is available for Rodriguez Industries: Direct labor $ 84,000 Total current manufacturing costs...
The following information is available for Rodriguez Industries: Direct labor $ 84,000 Total current manufacturing costs 385,000 Manufacturing overhead is applied to production at 150 percent of direct labor cost. Determine the amount of direct materials used in production. Job 31 has a direct materials cost of $280 and a total manufacturing cost of $820. Overhead is applied to jobs at a rate of 200 percent of direct labor cost. Use the relationships among total manufacturing costs, conversion cost, and...
The following data are for the current year: Sales $700,000 Direct materials 250,000 Direct labor cost...
The following data are for the current year: Sales $700,000 Direct materials 250,000 Direct labor cost 90,000 Variable manufacturing overhead 30,000 Fixed direct manufacturing overhead 38,000 Variable selling and admin expenses 40,000 Fixed indirect selling and admin expenses 130,000 All variable costs are direct costs. Prepare an income statement showing contribution margin, contribution to indirect expenses and net income.
Sandhill Industries carries no inventories. Its product is manufactured only when a customer’s order is received....
Sandhill Industries carries no inventories. Its product is
manufactured only when a customer’s order is received. It is then
shipped immediately after it is made. For its fiscal year ended
October 31, 2020, Sandhill’s break-even point was $1.35 million. On
sales of $1.19 million, its income statement showed a gross profit
of $202,600, direct materials cost of $405,000, and direct labor
costs of $505,000. The contribution margin was $166,600, and
variable manufacturing overhead was $51,000.
Calculate the following:
1.
Variable...
Corcovado Industries makes specialized clothing for businesses in the food and beverage 4. ag Sepkeions SeptDirect materials costing $60,000 were purchased on account. Direct materials costing $3...
Corcovado Industries makes specialized clothing for businesses in the food and beverage 4. ag Sepkeions SeptDirect materials costing $60,000 were purchased on account. Direct materials costing $32,850 were requested into production (all were Job A). used on 3 4 Indirect materials were purchased for cash, $32,830 8 The company issued checks for the following factory overhead costs: Utilities, S3,210; manufacturing insurance, $4,025: and repairs, $4,640 Direct materials costing $34,510 (all used on Job A) and indirect materials costing $6,480 were...
8) 8) Johansen Corporation uses a predetennined overhead rate based on direct labor-hours to apply manufacturing...
8) 8) Johansen Corporation uses a predetennined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary $ $ $ $ $ $ $ 6,000 20,000 15,000 25,000 8,000 12,000 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate...
20. Costs other than direct materials cost and direct labor cost incurred in the manufacturing process...
20. Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as a. factory overhead cost b. miscellaneous expense c. product costs d. period cost 21. Which of the following is an example of a factory overhead cost? a. repair and maintenance cost on the administrative building b. factory heating and lighting cost e. insurance premiums on salespersons' automobiles d. president's salary 22. Prime costs are a direct materials and factory overhead b....
28. Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employee's compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May follow: Non factory Sales $5,000 Administrative 10.000 Factory Direct Labor $25,000 Overtime premium 2,500 Indirect Labor 15,000 Excluding payroll taxes, how much of the accrued payroll on April 30 should be charged to Factory Overhead? a....
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect labor Factory depreciation $16,000 4,000 8,500 12,800 37,000 Direct labor Using the above information, total factory A) $53,000. B) $25,300. e above information total factory overhead costs would be: C) $78,300. D) $16,800. E) $12,800 ne overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Work in Process Inventory. B) Cost...
The following data are for the current year: Sales $700,000 Direct materials 250,000 Direct labor cost 90,000 Variable manufacturing overhead 30,000 Fixed direct manufacturing overhead 38,000 Variable selling and admin expenses 40,000 Fixed indirect selling and admin expenses 130,000 All variable costs are direct costs. Prepare an income statement showing contribution margin, contribution to indirect expenses and net income.
Sandhill Industries carries no inventories. Its product is
manufactured only when a customer’s order is received. It is then
shipped immediately after it is made. For its fiscal year ended
October 31, 2020, Sandhill’s break-even point was $1.35 million. On
sales of $1.19 million, its income statement showed a gross profit
of $202,600, direct materials cost of $405,000, and direct labor
costs of $505,000. The contribution margin was $166,600, and
variable manufacturing overhead was $51,000.
Calculate the following:
1.
Variable...
Corcovado Industries makes specialized clothing for businesses in the food and beverage 4. ag Sepkeions SeptDirect materials costing $60,000 were purchased on account. Direct materials costing $32,850 were requested into production (all were Job A). used on 3 4 Indirect materials were purchased for cash, $32,830 8 The company issued checks for the following factory overhead costs: Utilities, S3,210; manufacturing insurance, $4,025: and repairs, $4,640 Direct materials costing $34,510 (all used on Job A) and indirect materials costing $6,480 were...
8) 8) Johansen Corporation uses a predetennined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary $ $ $ $ $ $ $ 6,000 20,000 15,000 25,000 8,000 12,000 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate...
20. Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as a. factory overhead cost b. miscellaneous expense c. product costs d. period cost 21. Which of the following is an example of a factory overhead cost? a. repair and maintenance cost on the administrative building b. factory heating and lighting cost e. insurance premiums on salespersons' automobiles d. president's salary 22. Prime costs are a direct materials and factory overhead b....
Most questions answered within 3 hours.
-
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 24 minutes ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 23 minutes ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 2 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 2 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 3 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 3 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 4 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 4 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 4 hours ago -
1.
What is the minimum volume to use in the Spec 20 cuvette in order
to...
asked 4 hours ago -
A builder wants to install wall-to-wall carpeting in a living
room of length 8.87 m and...
asked 4 hours ago -
Organizational change can produce anxiety in those affected by
the change. In what ways can change...
asked 4 hours ago