The following information applies to the questions displayed below Petro Motors, Inc. (PMI), produces small gasoline-powered...
Question 1 Accounting 7000 Question 2: Question 3: Question 4: Question 5: Question 6: Required information Problem 16-30 (Static) Relevant costs, special sales order-idle versus full capacity LO 2, 3 [The following information applies to the questions displayed below.] Petro Motors Inc. (PMI) produces small gasoline-powered motors for use in lawn mowers. The company has been growing steadily over the past five years and is operating at full capacity. PMI recently completed the addition of new plant and equipment at...
Required information [The following information applies to the questions displayed below.] Badger Valve and Fitting Company, located in southern Wisconsin, manufactures a variety of industrial valves and pipe fittings that are sold to customers in nearby states. Currently, the company is operating at about 70 percent capacity and is earning a satisfactory return on investment. Management has been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 170,000 units of a pressure valve. Glasgow Industries manufactures a...
[The following information applies to the questions displayed below.] Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.70 p per unit. Fixed costs are expected to amount to 56,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.30 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 9 percent of the sales...
Required information [The following information applies to the questions displayed below.] Upstate Mechanical, Inc. has been producing two bearings, components 179 and B81, for use in production. Data regarding these two components follow. 179 2.5 B81 3.0 $ 2.25 4.00 $ 3.75 4.50 Machine hours required per unit Standard cost per unit: Direct material Direct labor Manufacturing overhead Variable Fixed Total 2.00 3.75 $12.00 2.25 4.50 $15.00 "Variable manufacturing overhead is applied on the basis of direct-labor hours. "Fixed manufacturing...
Required information The following information applies to the questions displayed below O Brien Company manufactures and sells one produce the following information pertains to each of the company's first three years of operations Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturine overhead Variable selling and administrative Fixed costs per year! Fixed manufacturing overhead Fixed selling and administrative expenses 1660,000 $120, 220 During its first year of operations, O Brien produced 100.000 units and sold 80.000 units. During...
[The following information applies to the questions displayed below.) Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales $ 3.150.000 Cost of goods sold Direct materials $ 960.000 Direct labor 200.000 Machinery repairs (variable cost) 45,000 Depreciation-Plant equipment straight-line) 300,000 Utilities ($60,000 is variable) 195,000 Plant management salaries 210.000 1920.000 Gross profit 1230000...
Required information [The following information applies to the questions displayed below.) For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the...
Required information The following information applies to the questions displayed below] Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 53,100 machine hours per year, which represents 26,550 units of output. Annual budgeted fixed factory overhead costs are $265,500 and the budgeted variable factory overhead cost rate is $3.00 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed...
Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the...
Required information [The following information applies to the questions displayed below.] For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hours of direct labor time per unit to manufacture and extensive machining in the automated portion of the...