Answer with working is given below
3. The company manufactures two products - A and B. Item name Direct material costs (euro...
1. The company manufactures products in Z, the variable costs is euro 6 per 1 unit, selling price - 9 euro. Month of the product output was 20 000 units. Fixed costs (production, administration, cost of sales) the total amount per month 47 000 euro, variable costs 120 000 euro. What could be contribution margin and profit in month, if the sales volume would be 10 000 units? What will be the profit if sold 17 000 units
Albany Machinery manufactures two products, Basic and Superior, and applies overhead on the basis of direct labour hours. Anticipated (budgeted) overhead and direct labour time for the upcoming accounting period are $1,510,000 and 37,600 hours, respectively. Information about the company’s products follows: Basic: Estimated product volume 4 800 units Direct material cost $26 per unit Direct labour per unit 3 hours at $13 per hour Superior: Estimated product volume 5 800 units Direct material cost $62 per unit Direct labour...
i) Origin Company manufactures two products, Product A and Product B. Product B is a fairly new product and is the more complex of the two products, requiring 3 hours of direct labour time per unit to manufacture compared to the 2 hours of direct labour time required for Product A. The company estimated it would incur $870,000 in manufacturing overhead costs and produce 15,000 units of Product B and 50,000 units of Product A during the current year. Unit...
Chargeit Corporation This company manufactures two types of products. Each unit of each type receives an overhead charge. Currently, the company charges overheads using total forecast annual direct manufacturing labour hours using the total forecast manufacturing overheads for the year. The management accountant has recently suggested dividing the total overheads into two categories: machining overheads and general overheads. If overheads were to be charged using the proposed two categories, machining overheads would be charged in using machine hours per unit,...
The Gadget Co produces three products, A, B and C, all made from the same material. Until now, it has used traditional absorption costing to allocate overheads to its products. The company is now considering an activity-based costing system in the hope that it will improve profitability. Information for the three products for the last year is as follows: A B C Production and sales volumes (units) 15,000 12,000 18,000 Selling price per unit $7.50 $12 $13 Raw material usage...
Lee Company manufactures a product for which the following direct material standards have been set: 3 feet per unit at a standard unit cost of $15. During October, the company purchased direct materials at a cost of $55,650, all of which were used in the production of 3,200 units of product. In addition, 4,900 hours of direct labor were logged during the month. The cost of labor time was $36,750. For the month, the direct materials quantity variance was an...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit Direct Labor per unit,...
Nyundo Ltd manufactures a product whose standard variable cost is given below: Direct materials (2 kg @ Sh 3) Direct labour (0.75 hours @ Sh 4) Variable overheads The company treats fixed costs as period costs and therefore they are not charged to products. The following information relates to the month of March 2001. 1/10/2019 31/10/2019 Sh Sh Stocks (all at standard cost) Raw materials 12,000 6,000 Finished goods 36,000 42,500 The following information is available for the month of...
Gwalior Sports Goods manufactures two different types of tennis tables (A & B). Cost and other details of these two products are given below: (i) Cost details of Product A and B Information Product A Product B Direct Costs Materials Units Cost per unit of material Units Cost per unit of materials Material X 20 units $ 8 per unit of material 40 $ 10 per unit of material Material Y 40 units $ 10 per unit of material 20...
Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct-labor hours. Anticipated overhead and direct-labor time for the upcoming accounting period are $800,000 and 25,000 hours, respectively. Information about the company’s products follows. Standard: Est. production volume, 3000 units Direct-material cost, $25 per Unit Direct Labor per unit, 3 hrs at $12 per hr Enhanced: Est. production volume, 4000 units Direct material cost, $40 per Unit ...