Please give explanation of how you got all of the numbers!
1) | |||||||
Ergo | Standard | total | |||||
Account | |||||||
sales revenue | 2,925,000 | 2,760,000 | 5,685,000 | ||||
direct materials | 550,000 | 500,000 | 1,050,000 | ||||
direct labor | 400,000 | 200,000 | 600,000 | ||||
overhead costs: | |||||||
Administration | 312000 | 156000 | 468000 | ||||
production setup | 360000 | 720000 | 1,080,000 | ||||
quality control | 360000 | 360000 | 720,000 | ||||
Distribution | 288000 | 1152000 | 1,440,000 | ||||
total overhead costs | 1320000 | 2388000 | 3,708,000 | ||||
operating profit (loss) | 655,000 | -328,000 | 327,000 | ||||
working notes | rate | ||||||
Administration activity rate | 468000/600,000= | 0.78 | |||||
production setup | 1,080,000/150= | 7200 | |||||
quality control | 720,000/(200+200)= | 1800 | |||||
Distribution | 1,440,000/(1500+6000)= | 192 | |||||
(after calcuating rate multiply it with individual activity level) | |||||||
2) | Ergo | Standard | total | ||||
Account | |||||||
sales revenue | 2,925,000 | 2,760,000 | 5,685,000 | ||||
direct materials | 550,000 | 500,000 | 1,050,000 | ||||
direct labor | 400,000 | 200,000 | 600,000 | ||||
overhead costs: | 2472000 | 1236000 | 3708000 | ||||
operating profit | -497,000 | 824,000 | 327,000 | ||||
working notes | |||||||
ergo overhead | 3708000/600000*400000 | ||||||
Standard | 3708000/600000*200000 | ||||||
Please give explanation of how you got all of the numbers! EZ-Seat, Inc., manufactures two types...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the statement below. EZ-SEAT, INC. Income Statement Ergo Standard $2,925,000 $2,760,000 550,000 500,000 400,000 200,000 Total $5,685,000 1,050,000 600,000 Sales...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the statement below. EZ-SEAT, INC. Income Statement Ergo $2,925,000 550,000 400,000 Standard $2,760,000 500,000 200,000 Total Sales revenue Direct materials...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the following statement. EZ-SEAT, INC. Income Statement Ergo Standard $2,925,000 $2,760,000 558,00 580, eee 400, eee 2 ee, eee Total...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the following statement. EZ-SEAT, INC. Income Statement Ergo Standard $3,000,000 $4,000,000 900,000 1,200,000 600,000 400,000 Total $7,000,000 2,100,000 1,000,000 Sales...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the following statement. EZ-SEAT, INC. Income Statement Ergo Standard $2,000,000 $5,000,000 600,000 1,500,000 400,000 500,000 Total $7,000,000 2,100,000 900,000 Sales...
EZ-Seat, Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the following statement. EZ-SEAT, INC. Income Statement Ergo Standard Total $3,000,000 $4,000,000 $7,000, eee 900, eee 1, 2ee, eee2 ,...
Pepper’s Products manufactures and sells two types of chew toys for pets, Squeaky and Silent. In May, Pepper’s Products had the following costs and revenues: Pepper's Products Income Statement For the Month of May Squeaky Silent Total Sales revenue $ 148,000 $ 160,000 $ 308,000 Direct materials 20,000 18,000 38,000 Direct labor 80,000 20,000 100,000 Overhead costs Administration 20,000 Production setup 42,000 Quality control 20,800 Distribution 19,000 Operating profit $ 68,200 Pepper’s Products currently uses labor costs to allocate all...
Pepper’s Products manufactures and sells two types of chew toys for pets—Squeaky and Silent. In May, Pepper’s Products had the following costs and revenues. Pepper's Products Income Statement For the Month of May Squeaky Silent Total Sales revenue $ 138,000 $ 154,000 $ 292,000 Direct materials 19,000 22,000 41,000 Direct labor 80,000 20,000 100,000 Overhead costs Administration 20,000 Production setup 45,000 Quality control 20,000 Distribution 21,000 Operating profit $ 45,000 Pepper’s Products currently uses labor costs to allocate all overhead...
$ Additional ABC Problems 1. Activity-Based versus Traditional Costing Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. Management believes that the accounting system is not accurately allocating costs to products and has asked you to investigate if there is a cost allocation problem. You find that manufacturing overhead costs are currently assigned to products based on their direct labor costs. For your investigation, you have data...
please explain why those are the correct answer step by step 2. Bret Inc. manufactures mobiles. Last month, direct materials, electronic components, etc., costing $600,000 were put into production. Direct labor of $900,000 was incurred, manufacturing overhead equaled $600,000, and selling and administrative costs totaled $400,000. The company manufactured 9,000 mobiles during the month. Assume that there were no beginning or ending work in process balances. Calculate the total product cost. a. $2,400,000 b. $2,100,000 C. $1,900,000 d. $2,500,000 b...