Homework Answers
Solution
4. Correct option is variable costs
Explanation:
Fixed costs of a product can not be avoided. They will be incurred whether the product is manufactured or not. But the variable cost can be avoided by not making the product. So sales price of a product should cover atleast the variable cost of making and selling the product. Anything above this Costs will help in covering fixed costs and contribute towards profit.
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71,218 21,208 none of the above of (5pts) 4) When setting the sales price, the sales...
Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales for...
Royal Company is preparing budgets for the second quarter ending
June 30. Last year's sales for the corresponding period were:
A. The company expects this year's sales to increase by 25%. The
selling price is $13 per unit. Prepare a Sales
Budget.
B. The company desires to have finished inventory on hand at the
end of each month equal to 30 percent of the following month's
budgeted unit sales. On March 31, there were 3,000 units on hand.
Prepare a...
Campbell Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost...
Campbell Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.40 per unit $ 3.40 per unit $2,600 total $ 600 total Campbell planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.10 per unit and that the actual variable cost is $3.70 per unit. The actual fixed manufacturing cost is $2,400,...
↵ Perez Manufacturing Comp any established the following standard price and cost data: Sales price $...
↵
Perez Manufacturing Comp
any established the following standard price and cost data:
Sales price
$
8.20
per unit
Variable manufacturing cost
$
3.50
per unit
Fixed manufacturing cost
$
2,500
total
Fixed selling and administrative cost
$
600
total
Perez planned to produce and sell 2,600 units. Actual production
and sales amounted to 2,800 units.
Required
Determine the sales and variable cost volume variances.
Classify the variances as favorable (F) or unfavorable (U).
Determine the amount of fixed cost...
Cherokee Manufacturing Company established the following standard price and cost data: Sales price $ 12.00 per...
Cherokee Manufacturing Company established the following standard price and cost data: Sales price $ 12.00 per unit Variable manufacturing cost $ 7.20 per unit Fixed manufacturing cost $ 3,600 total Fixed selling and administrative cost $ 1,200 total Cherokee planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units. Assume that the actual sales price is $11.76 per unit and that the actual variable cost is $6.90 per unit. The actual fixed manufacturing cost is...
Cost Behavior in Real Companies
Choose a company that manufactures a product or provides a service in this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information. Describe the company you selected and the products or services it provides.List ten costs that this company would incur. Include costs from a variety of departments within the company, including human resources, sales, accounting, production, service, and others. Make sure that you...
Cost Behavior in Real Companies
Choose a company that manufactures a product or provides a service in this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information. Describe the company you selected and the products or services it provides.List ten costs that this company would incur. Include costs from a variety of departments within the company, including human resources, sales, accounting, production, service, and others. Make sure that you...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
Sales: Sales in Units (Masks) Selling Price per Mask JULY 222,000 7.75 AUGUST 290,000 SEPTEMBER 216,000...
Sales: Sales in Units (Masks) Selling Price per Mask JULY 222,000 7.75 AUGUST 290,000 SEPTEMBER 216,000 OCTOBER 165,000 NOVEMBER 197,000 $ Collections: Cash Collected in the Month of Sale Cash Collected in Following Month 70% 30% Finished Goods Inventory: Ending FG Inventory Requirement Beginning FG Inventory, July 1, 2020 20% of next month's unit sales 44,400 masks Raw Materials Inventory: Raw Materials Required per Mask Raw Materials Cost per Yard Ending RM Inventory Requirement Paid in Month of Purchase Paid...
13. Fixed costs arise from owning: machinery buildings land (a) All of the above None of the above. Which of the fo...
13. Fixed costs arise from owning: machinery buildings land (a) All of the above None of the above. Which of the following key variables might you conduct sensitivity analysis on? (a) 14. prices yields average litter sizes (d) All of the above 15. Which term is best described by the following: Costs which the farm incurs that do not vary with the level of production. a. variable costs b. cost of production c. enterprise budget d. fixed costs
4. When the selling price per unit and variable costs per unit remain constant, if total...
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
Royal Company is preparing budgets for the second quarter ending
June 30. Last year's sales for the corresponding period were:
A. The company expects this year's sales to increase by 25%. The
selling price is $13 per unit. Prepare a Sales
Budget.
B. The company desires to have finished inventory on hand at the
end of each month equal to 30 percent of the following month's
budgeted unit sales. On March 31, there were 3,000 units on hand.
Prepare a...
Campbell Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 8.40 per unit $ 3.40 per unit $2,600 total $ 600 total Campbell planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.10 per unit and that the actual variable cost is $3.70 per unit. The actual fixed manufacturing cost is $2,400,...
↵
Perez Manufacturing Comp
any established the following standard price and cost data:
Sales price
$
8.20
per unit
Variable manufacturing cost
$
3.50
per unit
Fixed manufacturing cost
$
2,500
total
Fixed selling and administrative cost
$
600
total
Perez planned to produce and sell 2,600 units. Actual production
and sales amounted to 2,800 units.
Required
Determine the sales and variable cost volume variances.
Classify the variances as favorable (F) or unfavorable (U).
Determine the amount of fixed cost...
Problem 15-20 Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Vernon Publications established the following standard price and costs for a hardcover picture book that the company produces $ Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing Overhead Selling general, and administrative 36.60 8.50 3.80 5.50 6.40 $129,000 50.000 Vernon planned to make and sell 31.000 copies of the book. Required: a.-d. Prepare...
Sales: Sales in Units (Masks) Selling Price per Mask JULY 222,000 7.75 AUGUST 290,000 SEPTEMBER 216,000 OCTOBER 165,000 NOVEMBER 197,000 $ Collections: Cash Collected in the Month of Sale Cash Collected in Following Month 70% 30% Finished Goods Inventory: Ending FG Inventory Requirement Beginning FG Inventory, July 1, 2020 20% of next month's unit sales 44,400 masks Raw Materials Inventory: Raw Materials Required per Mask Raw Materials Cost per Yard Ending RM Inventory Requirement Paid in Month of Purchase Paid...
13. Fixed costs arise from owning: machinery buildings land (a) All of the above None of the above. Which of the following key variables might you conduct sensitivity analysis on? (a) 14. prices yields average litter sizes (d) All of the above 15. Which term is best described by the following: Costs which the farm incurs that do not vary with the level of production. a. variable costs b. cost of production c. enterprise budget d. fixed costs
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
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