Question

24. Andrei Inc. have the following budgeted costs for a manufacturing plant producing custom products: Materials (70% direct and 30% indirect) $15,000 Labour (60% direct and 40% indirect) $12,000 Supervision $5,000 Amortization $10,000 Utilities $4,860 Total $46,860 The company uses a normal costing system and overhead is allocated on the basis of direct labour cost. If actual direct labour cost was $7,500, the applied overhead was: a. $29,160 b. $20,688 c. $30,375 d. $48,813 e. None of the above 25. Libasci Ltd. began the period with no units in process and 80,000 units in finished goods inventory. During the period they sold 280,000 units and also had the following at the end of the period: Finished goods (units) Work in process (50% conversion complete) 40,000 12,000 Equivalent units of Conversion for the period totaled a. 314,000 b. 280,000 c. 240,000 d. 246,000 e. None of the above 26. At May 1, 2019, Dupuis Inc. has $4,500 in beginning raw materials, $6,000 of direct labour. If manufacturing overhead was $10,500, total manufacturing costs was $50,500 and total raw material purchases were $36,000, how much is ending amount of raw materials? a. $36,000 b. $12,000 c. $40,500 d. $6,500 e. None of the above

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 24
Andrei Inc.
Calculation of estimated overhead	Amount $	Note
30% of materials cost	4,500.00
40% of labor cost	4,800.00
Supervision	5,000.00
Amortization	10,000.00
Utilities	4,860.00
Estimated overhead	29,160.00	A
Direct labor cost (60% of labor cost)	7,200.00	B
Overhead application rate	405.00%	C=A/B
Actual Direct labor cost	$    7,500.00	D
Overhead applied	$ 30,375.00	E=C*D
So answer is option C. $ 30,375.
Answer 25
Libasci Ltd.
Units manufactured during the period	Figures
Units sold	280,000.00
Add: Closing units	40,000.00
Less: Opening units	80,000.00
Units manufactured during the period	240,000.00	F
Calculation of equivalent units of conversion	See F	G	H=F*G
Description	Physical units	% completed	Equivalent units
Units manufactured during the period	240,000.00	100%	240,000.00
Work in process	12,000.00	50%	6,000.00
Equivalent units of conversion			246,000.00
So answer is option D. 246,000 units.
Answer 26
Dupuis Inc.
Calculation of Raw materials used	Amount $
Total manufacturing costs	50,500.00
Less: Direct labor	6,000.00
Less: Manufacturing Overhead	10,500.00
Raw materials used	34,000.00	I
Calculation of ending Raw materials	Amount $
Opening Raw materials	4,500.00	See I
Add: Purchases during the year	36,000.00
Less: Raw materials used	34,000.00
Ending Raw materials	6,500.00
So answer is option D. $ 6,500.
Answer 27
Afridi Designs	J	K	L=J*K
Description	Contribution margin	Weight %	Weighted Contribution margin	Note
Slides	15.00	80%	12.00
Pumps	24.00	20%	4.80
Contribution margin per unit			16.80	M
Fixed costs			99,000.00	N
Breakeven point			5,892.86	O=N/M
Weight % of pumps			20%	P
Breakeven Units of pumps			1,178.57	Q=O*P
So answer is option E. None of the above.
Answer 28
Nahas Tech.	R	S	T=R*S
Description	Contribution margin	Weight %	Weighted Contribution margin	Note
X-210	15.00	80%	12.00
Y-350	24.00	20%	4.80
Contribution margin per unit			16.80	U
Fixed costs			168,000.00
Add: Desired Income			33,600.00
Target Contribution			201,600.00	V
Units to be sold			12,000.00	W=V/U
Weight % of X-210			80%	X
Units to be sold of X-210			9,600.00	Y=W*X
So answer is option B. 9,600 units.