Homework Answers
| a) 1. | ||||
| Overheads currently charged by company @25% of direct labor | ||||
| Here total overheads are $600,000 of which $360000 is fixed then $240000 is variable which is 40% of total overhead. | ||||
| Variable overhead per unit to be charged is = 16000*25%*40%= 1600 | ||||
| Minimum selling price Mr. Berg could have quoted without reducing or increasing the net income: | ||||
| 10000+16000+1600 | ||||
| $27600, It is relevant cost for the product which must be charged. | ||||
| b) The main disadvantage is contribution margin does not take into consideration the fixed cost which does play an important role in calculating the operating income | ||||
Add Answer to:
E. Berg & Sons build custom-made pleasure boats that range in price from $30,000 to or the past 3...
1. E. Berg & Sons build custom-made pleasure boats that range in price from $30,000 to...
1. E. Berg & Sons build custom-made pleasure boats that range in price from $30,000 to $250,000. For the past 30 years, Ed Berg Sr., has determined the selling price of each boat by estimating the cost of direct materials, direct manufacturing labor, an allocated portion of total overhead (which includes nonmanufacturing cost), and adding a 20% markup to the total of this cost. For example, a recent price quotation was determined as follows: Direct materials $10,000 Direct manufacturing labor...
AbC Company is a Contracting Company that builds custom- made boats. It received from MVB an...
AbC Company is a Contracting Company that builds custom- made boats. It received from MVB an order to build 5 custom-made boats. The boats are to be delivered in 6 months with the first two to be delivered in the next two months. The following costs are incurred for the two boats to be delivered in two months: Direct Materials $ 80,000 Direct Labor $120,000 Manufacturing Overhead is applied at 150% of Direct Labor. Required: How Much...
The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459...
The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459 requires 1,000 pounds of wood costing $8 per pound. It requires 60 hours of direct labor costing $25 per hour. Total cost for all jobs Total amount of activity for all jobs Type of manufacturing overhead for the whole year for the whole year Setup Cost $50,000 400 setups Materials Handling 320,000 16,000 moves Electricity 30,000 6,000 machine hours _______ Total manufacturing...
The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459...
The Green Company makes boats from wood. Job 459 is to build 40 rowboats. Job 459 requires 1,000 pounds of wood costing $8 per pound. It requires 60 hours of direct labor costing $25 per hour. Total manufacturing overhead cost expected for all jobs during the whole year in the Machining department $160,000 Estimated machine hours for all jobs during the whole year in the Machining department 8,000 Estimated direct labor hours for all jobs during the whole...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,00 1.6 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,000 $ 1.00 $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,000 $ 1.00 $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 60,000 Machine-hours required to support estimated production 30,000 Fixed manufacturing overhead cost $ 180,000 Variable manufacturing overhead cost per direct labor-hour $ 1.00 Variable manufacturing overhead cost per machine-hour $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 213...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production 60,000 Machine-hours required to support estimated production 30,000 Fixed manufacturing overhead cost $ 180,000 Variable manufacturing overhead cost per direct labor-hour $ 1.00 Variable manufacturing overhead cost per machine-hour $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials $ 213...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 160,000 80,000 $ 480,000 $ 5.00 $ 10.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 240 $ 233...
1. E. Berg & Sons build custom-made pleasure boats that range in price from $30,000 to $250,000. For the past 30 years, Ed Berg Sr., has determined the selling price of each boat by estimating the cost of direct materials, direct manufacturing labor, an allocated portion of total overhead (which includes nonmanufacturing cost), and adding a 20% markup to the total of this cost. For example, a recent price quotation was determined as follows: Direct materials $10,000 Direct manufacturing labor...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,00 1.6 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost Direct labor-hours...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,000 $ 1.00 $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 60,000 30,000 $180,000 $ 1.00 $ 2.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: Direct materials Direct labor cost...
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labor-hour Variable manufacturing overhead cost per machine-hour 160,000 80,000 $ 480,000 $ 5.00 $ 10.00 During the year, Job 550 was started and completed. The following information is available with respect to this job: $ 240 $ 233...
Most questions answered within 3 hours.
-
2) You are given the task of finding a representation for a
circle in a drawing...
asked 19 minutes ago -
STUDY QUESTION: Does use of diet drug fen-phen
(fenfluramine-phentermine) cause valvular heart disease?
HINT: Valvular heart...
asked 10 minutes ago -
1. An object weighing 40 N rests on a surface. The coefficient
of friction is 0.35....
asked 1 hour ago -
Investor company owns 35% of investee company voting stock and
accounts for the investment under the...
asked 2 hours ago -
The number of major faults on a randomly chosen 1 km stretch of
highway has a...
asked 2 hours ago -
Consider the competitive environment of Starbuck's, Progressive
Insurance, a manufacturing firm with low turnover, or a...
asked 3 hours ago -
3. Gains from trade
Consider two neighbouring island countries called Euphoria and
Contente. They each have...
asked 5 hours ago -
A business executive has the option to invest money in two
plans: Plan A guarantees that...
asked 7 hours ago -
Hello, can someone please help me answer this question?
How much heat is absorbed by a...
asked 7 hours ago -
. A marketing researcher conducted a survey of 25 shoppers
randomly selected at the local mall...
asked 8 hours ago -
Create an comprehensive response to the
following:
Antimicrobial agents work on a multitude of microbes (bacteria,...
asked 8 hours ago -
6.13 LAB: Step counter. Section 6.3.
A pedometer treats walking 2,000 steps as walking 1 mile....
asked 8 hours ago