Discuss and describe the behavior of direct material cost in total and per unit as production...
Discuss and describe the behavior of direct material cost in total and per unit as production volume changes.
Homework Answers
Ans. Direct materials is a variable cost. Total variable cost changes in the proportion of production volume change. Total direct materials cost will increase as the production volume increase and will decrease as per the level of production decrease.
Variable cost per unit always remain constant on every level of production volume. So the direct materials cost per unit will not increase or decrease even though the production level increase or decrease.
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Discuss and describe the behavior of direct material cost in
total and per unit as production...
2. Compute both the direct material cost and the conversion cost per equivalent unit. ork Saved...
2.
Compute both the direct material cost and the conversion cost per
equivalent unit.
ork Saved Help Required information Problem 16-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 (The following information applies to the questions displayed below.) Victory Company uses weighted average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process...
Bemmitt’s direct material cost is $3 per unit. The direct labor rate is $16 per hour...
Bemmitt’s direct material cost is $3 per unit. The direct labor rate is $16 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $3 per unit and total budgeted fixed overhead is $6,000. A sales commission of $4 is paid on each unit. If Bemmitt expects to produce 2,270 units and sell 1,380 units, what is the total budgeted cost of goods sold ? Round your answer to the nearest dollar.
Bemmitt’s direct material cost is $3 per unit. The direct labor rate is $16 per hour...
Bemmitt’s direct material cost is $3 per unit. The direct labor rate is $16 per hour and each units takes 1/4 hour to produce. Variable manufacturing overhead is $2 per unit and total budgeted fixed overhead is $7,400. A sales commission of $5 is paid on each unit. If Bemmitt expects to produce 3,210 units and sell 1,330 units, what is the total budgeted cost of goods sold ? Round your answer to the nearest dollar.
1). Sales is $100 per unit; direct material is $22 per unit; direct labor is $18...
1). Sales is $100 per unit; direct material is $22 per unit; direct labor is $18 per unit; overhead is $8 per unit and $1,800 per month; selling and administrative expenses are $5 per unit and $1,400 per month. If the company produced 100 units, total period costs are: a).$1,900 b).$4,800 c).$6,600 d).$500 2).Sales is $100 per unit; direct material is $25 per unit; direct labor is $15 per unit, overhead is $10 per unit and $20,000 per month; selling...
Question 4 2 pts Sales is $90 per unit; direct material is $9 per unit; direct...
Question 4 2 pts Sales is $90 per unit; direct material is $9 per unit; direct labor is $3 per unit, overhead is $6 per unit and $9,000 per month; selling and administrative expenses are $4 per unit and $22,000 per month. The company produced 1,000 units. Total product costs (cost of goods sold) are: $27,000 $90,000 $18,000 $63,000 Question 5 2 pts Sales is $90 per unit; direct material is $30 per unit; direct labor is $12 per unit;...
Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production...
Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $18.50 14.20 83.70 1,220 units Rocky River $ 26.20 17.60 105.ee 990 units Keller has monthly overhead of $11.446, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,790 5,506 3,150 $ 11,446 The company has also compiled the following Information about the chosen cost drivers: Sandy Beach Rocky River Number of setups Number...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $30 and the company sold 20,000 units. What is the contribution margin per unit? Answer:
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $35.00 and the company made and sold 10,000 units. What is the gross profit per unit? Answer: age
When using normal costing, the total production cost of a job is composed of: direct material...
When using normal costing, the total production cost of a job is composed of: direct material and direct labor. direct material, direct labor, manufacturing overhead, and outlays for selling costs. direct material, direct labor, manufacturing overhead, and outlays for both selling and administrative costs. direct material, direct labor, and applied manufacturing overhead. direct material, direct labor, and actual manufacturing overhead.
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production...
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 64.40 $ 17.80 1.4 DLHS 21,000 units Pathbreaker $ 50.60 $ 12.60 1 DLHS 71,000 units the company has a conventional costing system in which manufacturing overhead is applied to units based on jours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,967,840 100,400 DLHS Required: -a....
2.
Compute both the direct material cost and the conversion cost per
equivalent unit.
ork Saved Help Required information Problem 16-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3 (The following information applies to the questions displayed below.) Victory Company uses weighted average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process...
Question 4 2 pts Sales is $90 per unit; direct material is $9 per unit; direct labor is $3 per unit, overhead is $6 per unit and $9,000 per month; selling and administrative expenses are $4 per unit and $22,000 per month. The company produced 1,000 units. Total product costs (cost of goods sold) are: $27,000 $90,000 $18,000 $63,000 Question 5 2 pts Sales is $90 per unit; direct material is $30 per unit; direct labor is $12 per unit;...
Direct materials cost per unit Direct labor cost per unit Sales price per unit Expected production per month Sandy Beach $18.50 14.20 83.70 1,220 units Rocky River $ 26.20 17.60 105.ee 990 units Keller has monthly overhead of $11.446, which is divided into the following cost pools: Setup costs Quality control Maintenance Total $ 2,790 5,506 3,150 $ 11,446 The company has also compiled the following Information about the chosen cost drivers: Sandy Beach Rocky River Number of setups Number...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $30 and the company sold 20,000 units. What is the contribution margin per unit? Answer:
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $35.00 and the company made and sold 10,000 units. What is the gross profit per unit? Answer: age
Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Xactive $ 64.40 $ 17.80 1.4 DLHS 21,000 units Pathbreaker $ 50.60 $ 12.60 1 DLHS 71,000 units the company has a conventional costing system in which manufacturing overhead is applied to units based on jours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,967,840 100,400 DLHS Required: -a....
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