Homework Answers
1)
Product cost per unit = $21 + $15 + [($34,000 + $109,000) / 59,000] = $38.56
4th option.
2)
Delivery cost allocation:
Department Y = $1,600 + ($13,400 X 55%) = $8,970
Department Z = $13,400 X 45% = $6,030
1st option.
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Given the following data, calculate product cost per unit under absorption costing. 21 per unit 15...
A company has two departments, Y and Z that incur delivery expenses. An analysis of the...
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $12,000 indicates that Dept. Y had a direct expense of $1,300 for deliveries and Dept. Z had no direct expense. The indirect expenses are $10,700. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $7,330; $4,670....
1. A company pays $29,000 per period to rent a small building that has 11,400 square...
1. A company pays $29,000 per period to rent a small building that has 11,400 square feet of space. This cost is allocated to the company's three departments on the basis of the amount of the space occupied by each. Department One occupies 2,280 square feet of floor space, Department Two occupies 3,420 square feet of floor space, and Department Three occupies 5,700 square feet of floor space. If the rent is allocated based on the total square footage of...
A company has two departments, Y and Z that incur delivery expenses. An analysis of the...
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indicates that Dept. Y had a direct expense of $1,500 for deliveries and Dept. Z had no direct expense. The indirect expenses are $12,500. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $8,400; $5,600....
Exercise 19-11 Pricing with Absorption Costing $100 $30 Calculate absorption cost per unit: Direct materials Direct...
Exercise 19-11 Pricing with Absorption Costing $100 $30 Calculate absorption cost per unit: Direct materials Direct labor Variable overhead Fixed overhead Total Absorption Cost per unit $8 $12 600,000/50,000 $150 $60 Target Selling price per unit: Absorption Cost per unit $150 Target Selling price per unit $210 Exercise 19-11 Absorption costing and product pricing @P4 Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40%...
Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $6.95 $3.50 $1.75...
Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $6.95 $3.50 $1.75 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $19,800 $0.40 $0.50 $ 7,700 If 4,500 units are sold, the total variable cost is closest to: Multiple Choice O $72,900 O $80,550 O $58.950 O $54.900 Dake Corporation's relevant range of activity is 3.100 units to 6.500 units. When it produces and sells...
Wessner Corporation has provided the following information: Cost per Period Cost per Unit $6.20 $ 2.80...
Wessner Corporation has provided the following information: Cost per Period Cost per Unit $6.20 $ 2.80 $1.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $12,000 $1.00 $ 0.55 $ 4,000 If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to: Multiple Choice o $16.00 o $9.00 o $11.55 o $13.00
Brault Corporation has provided the following information: Cost per Period Cost per Unit $6.85 $ 3.85...
Brault Corporation has provided the following information: Cost per Period Cost per Unit $6.85 $ 3.85 $ 1.25 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $97,200 $ 1.00 $ 0.55 $40,500 If 10.000 units are sold, the variable cost per unit sold is closest to Multiple Choice $22.75 $13.50 $28.80 $11.95
Cost per Period Cost per Unit $7.35 $4.30 $1.60 Direct materials Direct labor Variable manufacturing overhead...
Cost per Period Cost per Unit $7.35 $4.30 $1.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $26,000 $0.80 $0.90 $ 6,000 If 6,500 units are sold, the total variable cost is closest to: Multiple Choice 0 $106.925 O $128.375 O $97,175 0 $86,125
Questions: 1) Determine the product (inventoriable) cost per unit under: a) Absorption costing [1 mark] b)...
Questions: 1) Determine the product (inventoriable) cost per
unit under: a) Absorption costing [1 mark] b) Variable costing. [1
mark]
2) Prepare the statement of profit and loss for periods 1-4
under absorption costing by using the gross margin approach. [12
marks]
3) Prepare the statement of profit and loss for periods 1-4
under variable costing by using the contribution margin approach.
[12 marks]
4) Reconcile the absorption and variable costing operating
profit figures for each period and explain the...
Lagle Corporation has provided the following information: Cost per Period Cost per Unit $4.50 $3.20 $1.20...
Lagle Corporation has provided the following information: Cost per Period Cost per Unit $4.50 $3.20 $1.20 $9,900 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $1.20 $0.30 $3,300 If 5,500 units are sold, the total variable cost is closest to: Multiple Choice
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indicates that Dept. Y had a direct expense of $1,500 for deliveries and Dept. Z had no direct expense. The indirect expenses are $12,500. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $8,400; $5,600....
Exercise 19-11 Pricing with Absorption Costing $100 $30 Calculate absorption cost per unit: Direct materials Direct labor Variable overhead Fixed overhead Total Absorption Cost per unit $8 $12 600,000/50,000 $150 $60 Target Selling price per unit: Absorption Cost per unit $150 Target Selling price per unit $210 Exercise 19-11 Absorption costing and product pricing @P4 Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40%...
Pedregon Corporation has provided the following information: Cost per Period Cost per Unit $6.95 $3.50 $1.75 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $19,800 $0.40 $0.50 $ 7,700 If 4,500 units are sold, the total variable cost is closest to: Multiple Choice O $72,900 O $80,550 O $58.950 O $54.900 Dake Corporation's relevant range of activity is 3.100 units to 6.500 units. When it produces and sells...
Wessner Corporation has provided the following information: Cost per Period Cost per Unit $6.20 $ 2.80 $1.45 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $12,000 $1.00 $ 0.55 $ 4,000 If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to: Multiple Choice o $16.00 o $9.00 o $11.55 o $13.00
Brault Corporation has provided the following information: Cost per Period Cost per Unit $6.85 $ 3.85 $ 1.25 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $97,200 $ 1.00 $ 0.55 $40,500 If 10.000 units are sold, the variable cost per unit sold is closest to Multiple Choice $22.75 $13.50 $28.80 $11.95
Cost per Period Cost per Unit $7.35 $4.30 $1.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $26,000 $0.80 $0.90 $ 6,000 If 6,500 units are sold, the total variable cost is closest to: Multiple Choice 0 $106.925 O $128.375 O $97,175 0 $86,125
Questions: 1) Determine the product (inventoriable) cost per
unit under: a) Absorption costing [1 mark] b) Variable costing. [1
mark]
2) Prepare the statement of profit and loss for periods 1-4
under absorption costing by using the gross margin approach. [12
marks]
3) Prepare the statement of profit and loss for periods 1-4
under variable costing by using the contribution margin approach.
[12 marks]
4) Reconcile the absorption and variable costing operating
profit figures for each period and explain the...
Lagle Corporation has provided the following information: Cost per Period Cost per Unit $4.50 $3.20 $1.20 $9,900 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $1.20 $0.30 $3,300 If 5,500 units are sold, the total variable cost is closest to: Multiple Choice
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