Homework Answers
Solution:
Percentage increase in total variable cost of company A = % increase in labor * ratio of labor to variable cost + % increase in fuel * Ratio of fuel to variable cost
= 10%*50% + 6%*50% = 8%
Percentage increase in total variable cost of company B = % increase in labor * ratio of labor to variable cost + % increase in fuel * Ratio of fuel to variable cost
= 10%*10% + 6%*90% = 6.4%
Add Answer to:
Company A has 50% of its total variable manufacturing cost in labor and the other 50%...
Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of...
Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company? a. 250 units b. 3,600 units c. 375 units d. 2,400 units 8. Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 55 percent and total fixed costs of $6,875. How many units must be sold in order to...
For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10,...
For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed cost per unit as a percentage of unit sales 1. increase 2. decrease 3. remain constants 4. we cannot find, we need more information
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Mohave has...
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 75 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be a. $(46,000). b. $6,000. c. $(40,000). d. $10,000. Chapman Company manufactures widgets. Embree Company has...
Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $...
Average Cost per Unit Direct materials $ 9.00 Direct labor $ 6.00 Variable manufacturing overhead $ 3.50 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 5.50 Fixed administrative expense $ 4.50 Sales commissions $ 3.00 Variable administrative expense $ 2.50 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 32,500 units? b. What is the total indirect manufacturing cost incurred to make 32,500 units? 2. Assume the...
Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead...
Mason Company has two manufacturing departments—Machining and
Assembly. The company considers all of its manufacturing overhead
costs to be fixed costs. It provided the following estimates at the
beginning of the year as well as the following information with
respect to Jobs A and B:
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as...
Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing...
Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $240,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Assembly setups $63,000 Setup hours Materials handling 33,000 Number of moves Assembly 120,000 Assembly hours Maintenance 24,000 Maintenance hours Total $240,000 Activity Level 1,500 300 12,000 1,200 Total direct labor hours used during the month were 8,000....
Average Cost per Unit Direct Materials $12 Direct Labor Indirect Materials Fixed manufacturing overhead Variable manufacturing...
Average Cost per Unit Direct Materials $12 Direct Labor Indirect Materials Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions E. IF 19,000 units are produced, what are the total manufacturing overhead costs incurred? Total manufacturing overhead costs $ F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred? Total manufacturing overhead costs $ G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required,...
Total direct labor-hours:101,000 Total fixed manufacturing overhead cost: $595,900 Variable manufacturing overhead per direct labor-hour: $3.00...
Total direct labor-hours:101,000 Total fixed manufacturing
overhead cost: $595,900 Variable manufacturing overhead per direct
labor-hour: $3.00
loughamy waketech edu My Turbo Tax Login Signint x f Me 2019 Connect Required: Ch 2 Quiz Saved Help Save & Exit Submit Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: points Total direct labor-hours Total fixed manufacturing overhead...
Prepare a production budget and a direct manufacturing labor cost budget for PetersonPeterson Company by month...
Prepare a production budget and a direct manufacturing labor cost budget for PetersonPeterson Company by month and for the first quarter of 20182018. You may combine both budgets in one schedule. The direct manufacturing labor cost budget should include labor-hours and show the details for each labor cost category. Start the schedule by preparing the production budget and calculating the total hours of direct manufacturing labor time needed for the three months in the quarter, then calculate the values for...
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 75 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental...
ত S Able Company's unit manufacturing cost is: Variable Costs Fixed Costs $50 25 A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be a. $(46,000). b. $6,000. c. $(40,000). d. $10,000. Chapman Company manufactures widgets. Embree Company has...
Mason Company has two manufacturing departments—Machining and
Assembly. The company considers all of its manufacturing overhead
costs to be fixed costs. It provided the following estimates at the
beginning of the year as well as the following information with
respect to Jobs A and B:
Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as...
Traditional Product Costing Versus Activity-Based Costing Assume that Panasonic Company has determined its estimated total manufacturing overhead cost for one of its plants to be $240,000, consisting of the following activity cost pools for the current month: Activity Centers Activity Costs Cost Drivers Assembly setups $63,000 Setup hours Materials handling 33,000 Number of moves Assembly 120,000 Assembly hours Maintenance 24,000 Maintenance hours Total $240,000 Activity Level 1,500 300 12,000 1,200 Total direct labor hours used during the month were 8,000....
Average Cost per Unit Direct Materials $12 Direct Labor Indirect Materials Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses Variable sales commissions E. IF 19,000 units are produced, what are the total manufacturing overhead costs incurred? Total manufacturing overhead costs $ F. If 24,000 units are produced, what are the total manufacturing overhead costs incurred? Total manufacturing overhead costs $ G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If required,...
Total direct labor-hours:101,000 Total fixed manufacturing
overhead cost: $595,900 Variable manufacturing overhead per direct
labor-hour: $3.00
loughamy waketech edu My Turbo Tax Login Signint x f Me 2019 Connect Required: Ch 2 Quiz Saved Help Save & Exit Submit Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: points Total direct labor-hours Total fixed manufacturing overhead...
Most questions answered within 3 hours.
-
The random variable X is exponentially distributed, where X
represents the time it takes for a...
asked 11 minutes ago -
a) Write a verilog module for 1:4 Demultiplexer using verilog
primitives.
b) Design 1-to-4 DEMUX using...
asked 6 minutes ago -
MATLAB
write a MATLAB function (1) output a third-order polynomial
function with the coefficients as the...
asked 19 minutes ago -
A z-score
communicates a raw score’s "relative standing"
under the normal curve in relation to:
asked 27 minutes ago -
An object is vibrating on a spring with the following equation
of motion:
?=(30 ??)cos((2?)/(160)?)
a)...
asked 27 minutes ago -
Vulcan Flyovers offers scenic overflights of Mount St. Helens,
the volcano in Washington State that explosively...
asked 29 minutes ago -
If organizations do not adapt fast enough and move incrementally
from the twentieth-century model to the...
asked 30 minutes ago -
A helium balloon with 2.5L of gas has a gauge pressure of 10,000
Pa. The balloon...
asked 34 minutes ago -
What is responsible for Jupiter's enormous magnetic field?
asked 49 minutes ago -
At the end of the year, a company offered to buy 5,000 units of
a product...
asked 51 minutes ago -
Implement C++ program for each of the following.
Let D = [-48, -14, -8, 0, 1,...
asked 1 hour ago -
Consider a labor market in which LD = 400 – 4W and LS = 250 +...
asked 1 hour ago