MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle of syrups...
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups and sold 190,000 of them, at an average
selling price of $25 per unit. The following additional information
relates to Athabasca Auto for 2019:
Direct Materials
$10.00 per unit
Direct manufacturing labour
$2.00 per unit
Variable manufacturing costs
$4.00 per unit
Sales commissions
$3.00 per part
Fixed manufacturing costs
$750,000 per year
Fixed administrative expenses
$270,000 per year
What is Athabasca Auto manufacturing cost per unit using:
a. Variable costing system (7 marks)
b. Absorption costing system (8 marks)
Homework Answers
a.
| Calculation of manufacturing cost per unit using Variable Costing | |
| Direct materials | 10 |
| Direct labor | 2 |
| Variable manufacturing overhead | 4 |
| Manufacturing cost per unit | $16 |
b.
| Calculation of manufacturing cost per unit using Absorption Costing | |
| Direct materials | 10 |
| Direct labor | 2 |
| Variable manufacturing overhead | 4 |
| Fixed manufacturing overhead ( 750,000/220,000) | 3.41 |
| Manufacturing cost per unit | $19.41 |
Kindly comment if you need further assistance. Thanks‼!
Add Answer to:
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups...
Question 4: Inventory Valuation Suggested time: 15 minutes MAP One makes maple syrup in Canada. In...
Question 4: Inventory Valuation Suggested time: 15 minutes MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle of syrups and sold 190,000 of them, at an average selling price of $25 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials $10.00 per unit Direct manufacturing labour $2.00 per unit Variable manufacturing costs $4.00 per unit Sales commissions $3.00 per unit Fixed manufacturing costs $750,000 per year Fixed administrative expenses $270,000...
managerial accounting MAP One makes maple syrup in Canada. In 2019 it made 220,000 400gr bottle...
managerial accounting
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups and sold 190,000 of them, at an average
selling price of $25 per unit. The following additional information
relates to Athabasca Auto for 2019:
Direct Materials
$10.00 per unit
Direct manufacturing labour
$2.00 per unit
Variable manufacturing costs
$4.00 per unit
Sales commissions
$3.00 per part
Fixed manufacturing costs
$750,000 per year
Fixed administrative expenses
$270,000 per year
What is Athabasca Auto...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses $160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year $670,000 per year What is Athabasca Auto manufacturing cost per unit using:...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials $160.00 per unit Direct manufacturing labour $32.00 per unit Variable manufacturing costs $64.00 per unit Sales commissions $48.00 per part Fixed manufacturing costs $1,750,000 per year Fixed administrative expenses $670,000 per year What...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019 Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses S160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year 5670,000 per year What...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them at an average selling price of S480 per unit. The following additional information relates to Athabasca Auto for 2019: I Direct Materials S160.00 per unit Direct manufacturing labour S32.00 per unit Variable manufacturing costs S64.00 per unit Sales commissions S48.00 per part Fixed manufacturing costs S1.750,000 per year...
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of...
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials $20.00 per unit Direct manufacturing labour $ 4.00 per unit Variable manufacturing costs $1.00 per unit Sales commissions 5 5.00 per part Fored manufacturing costs $ 750.000 per year Administrative expenses, all find $ 270,000 per year What is Achilles Auto's inventoriable...
My question relates to Part A. I know the answer is 25 (20 + 4 +...
My question relates to Part A. I know the answer is 25 (20 + 4 +
1), but my question is... why is sales commission (a variable cost)
not included in the inventoriable cost per unit? Please explain.
Thank you!!
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 9-1 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials Direct...
Simpsons plc calculated variable manufacturing costs of $1 for each bottle of its Duff beer. This includes already dire...
Simpsons plc calculated variable manufacturing costs of $1 for each bottle of its Duff beer. This includes already direct materials & direct labour. Total manufacturing costs per unit are calculated to amount to $1.20 per bottle. The fixed manufacturing costs of $6,000 (see below) were allocated to products based on the budgeted production level of 30,000 units/month. The company produces exactly the quantity that it had planned, i.e. 30,000 bottles/month, but it sold only 29,000 bottles this month. Opening inventory...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...
managerial accounting
MAP One makes maple syrup in Canada. In 2019 it made 220,000
400gr bottle of syrups and sold 190,000 of them, at an average
selling price of $25 per unit. The following additional information
relates to Athabasca Auto for 2019:
Direct Materials
$10.00 per unit
Direct manufacturing labour
$2.00 per unit
Variable manufacturing costs
$4.00 per unit
Sales commissions
$3.00 per part
Fixed manufacturing costs
$750,000 per year
Fixed administrative expenses
$270,000 per year
What is Athabasca Auto...
Athabasen Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019: Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses $160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year $670,000 per year What is Athabasca Auto manufacturing cost per unit using:...
Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120,000 batteries and sold 95,000 of them, at an average selling price of $480 per unit. The following additional information relates to Athabasca Auto for 2019 Direct Materials Direct manufacturing labour Variable manufacturing costs Sales commissions Fixed manufacturing costs Fixed administrative expenses S160.00 per unit $32.00 per unit $64.00 per unit $48.00 per part $1,750,000 per year 5670,000 per year What...
Help >> 11 View Av A Question 4: Inventory Valuation Suggested time: 15 minutes Athabasca Auto makes and sell auto batteries. In 2019 it made 120.000 batteries and sold 95.000 of them at an average selling price of S480 per unit. The following additional information relates to Athabasca Auto for 2019: I Direct Materials S160.00 per unit Direct manufacturing labour S32.00 per unit Variable manufacturing costs S64.00 per unit Sales commissions S48.00 per part Fixed manufacturing costs S1.750,000 per year...
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials $20.00 per unit Direct manufacturing labour $ 4.00 per unit Variable manufacturing costs $1.00 per unit Sales commissions 5 5.00 per part Fored manufacturing costs $ 750.000 per year Administrative expenses, all find $ 270,000 per year What is Achilles Auto's inventoriable...
My question relates to Part A. I know the answer is 25 (20 + 4 +
1), but my question is... why is sales commission (a variable cost)
not included in the inventoriable cost per unit? Please explain.
Thank you!!
Achilles Auto makes and sells batteries. In 2017, it made 100,000 batteries and sold 9-1 75,000 of them, at an average selling price of $60 per unit. The following additional information relates to Achilles Auto for 2017: Direct materials Direct...
Simpsons plc calculated variable manufacturing costs of $1 for each bottle of its Duff beer. This includes already direct materials & direct labour. Total manufacturing costs per unit are calculated to amount to $1.20 per bottle. The fixed manufacturing costs of $6,000 (see below) were allocated to products based on the budgeted production level of 30,000 units/month. The company produces exactly the quantity that it had planned, i.e. 30,000 bottles/month, but it sold only 29,000 bottles this month. Opening inventory...
Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...
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