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Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows: 2016 2017...
Please show all work to solve. Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows: 2016 2017 Direct materials: Plastic case $ 4.00 $ 3.80 Lens set 17.00 17.20 Direct labor 32.00 (1.6 hours) 30.00 (1.5 hours) Indirect manufacturing costs: Variable 8.00 7.10 Fixed 2.00 (50,000 units) 1.60 (60,000 units) Beginning in 2017, Foresight implemented a continuous improvement program that required a first-year cost reduction target of a 5 percent reduction of the 2016 base....
2016 2017 Increase in Income Due to Revenue Increase in Costs Due to Direct Labor Jobs Billed (units sold Selling Price Labor Hours Cost Per Hour Support Capacity Cost of Support Support Per Job 50 2,00030,000 24,000 27,000 36 60 168,000 180,000 2.800 3,000 40 Due to Growth Due to Growth Units Sold in 2017 Units Sold in 2016 Increase in Units Sold Selling Price in 2016 35 60 Hours in 2016 Increase in Units Sold Expected Hours in 2017...
Amber Company produces iron table and chair sets. During October, Amber's costs were as follows: Actual purchase price Actual direct labor rate Standard purchase price Standard quantity for sets produced Standard direct labor hours allowed Actual quantity purchased in October Actual direct labor hours Actual quantity used in October Direct labor rate variance $ 1.90 per lb. $7.10 per hour $ 1.70 per lb. 930,000 lbs. 15,000 1,075,000 lbs. 8,000 960,000 lbs. $5,100 F Required: 1. Calculate the total cost...
1) X Company incurred the following costs in 2017: Factory insurance $5,629 Customer service 4,766 Advertising costs 4,594 Factory maintenance 5,023 Direct labor 5,972 Direct materials 4,514 Sales salaries 5,023 Factory utilities 5,153 Research & Development 5,599 Material handling 4,174 What was total overhead in 2017? 2) X Company had the following inventory account balances in 2017: Account January 1 December 31 Materials $14,524 $16,900 Work in Process 14,622 21,768 Finished Goods 14,594 14,594 The following additional information for the...
Xie Company identified the following activities, costs, and activity drivers for 2017 The company manufactures two types of go-karts: Deluxe and Basic. Activity Hand1ing mata iala Inapacting product 5625,000 100,000 pasta 1,500 batehaa Paying auppl10a Inausing tha factory 0,000 aat 2 modala 75, 000 Required: 1. Compute single plantwide overhead rate, assuming that the company assigns overhead based on 125,000 budgeted direct labor hours. 2 In Janusry 2017, the Deluxe model required 2500 direct labor hours and the basic model...
Last year, X Company sold 67,500 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable $433,350 Fixed 125,550 Selling and administrative Variable $97,200 Fixed 78,300 At the end of the year, a company offered to buy 4,000 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...
Last year, X Company sold 62,000 units of its only product for $17.00 each. Total costs were as follows: Cost of goods sold Variable Fixed Selling and administrative Variable Fixed $408,580 132,680 $69,440 64,480 At the end of the year, a company offered to buy 4,910 units of the product but only for $11.00 each. X Company had the capacity to produce the additional units, and even though there would have been no additional selling and administrative costs, it rejected...
At a recent seminar you attended, the invited speaker was discussing some of the advantages and disadvantages of standard costs in terms of evaluating performance and motivating goal-congruent behavior on the part of employees. One criticism of standard costs in particular caught your attention: The use of conventional standard costs may not provide appropriate incentives for improvements needed to compete effectively with world-class organizations. The speaker then discussed so-called continuous-improvement standard costs. Such standards embody systematically lower costs over time....
Skulas, Inc., manufactures and sells Skulas manufactures a
single model, the Pipex. In late 2017, Skulas's management
accountant gathered the following data to prepare budgets for
January 2018:
Data Table
Materials and Labor Requirements
Direct materials
Wood
9
board feet (b.f.) per snowboard
Fiberglass
7
yards per snowboard
Direct manufacturing labor
8
hours per snowboard
Skulas's CEO expects to sell 1 comma 300 snowboards during
January 2018 at an estimated retail price of $ 650 per
board.Further, the CEO expects...