Homework Answers
Requirement 1: Compute total manufacturing cost as follows
| Account | Total Variable Costs | Total Fixed Costs | Total Costs |
| Direct material | $331,500 | $0 | $331,500 |
| Direct Manufacturing Labor | $261,800 | $0 | $261,800 |
| Power | $21,250 | $0 | $21,250 |
| Supervision Labor | $17,000 | $48,000 | $65,000 |
| Materials-handling labor | $29,750 | $42,000 | $71,750 |
| Maintenance Labor | $25,500 | $36,000 | $61,500 |
| Depreciation | $0 | $100,700 | $100,700 |
| Rent, Property, taxes and administration | $0 | $122,100 | $122,100 |
| Total manufacturing cost | $686,800 | $348,800 | $1,035,600 |
Notes: Prepare the following cost disaggregation schedule
| Particulars | Amount | × | Variable Percentage | Variable Costs | Fixed Costs | Unit Variable Cost | |
| (A) | (B) | (A) − (B) | (B) ÷ 80,000 | ||||
| Direct material | $300,000 | × | 100% | = | $300,000 | $0 | $3.75 |
| Direct Manufacturing Labor | $220,000 | × | 100% | = | $220,000 | $0 | $2.75 |
| Power | $20,000 | × | 100% | = | $20,000 | $0 | $0.25 |
| Supervision Labor | $64,000 | × | 25% | = | $16,000 | $48,000 | $0.20 |
| Materials-handling labor | $70,000 | × | 40% | = | $28,000 | $42,000 | $0.35 |
| Maintenance Labor | $60,000 | × | 40% | = | $24,000 | $36,000 | $0.30 |
| Depreciation | $95,000 | × | 0% | = | $0 | $95,000 | $0.00 |
| Rent, Property, taxes and administration | $110,000 | × | 0% | = | $0 | $110,000 | $0.00 |
| Total manufacturing cost | $939,000 | $608,000 | $331,000 | $7.60 |
Compute total variable cost as follows
| Particulars | Unit Variable Cost in 2017 | × | Increase in Cost | Unit Variable Cost in 2018 | Total Variable Cost | |
| (A) | (B) | (B) × 85,000 | ||||
| Direct material | $3.75 | × | 1.04 | = | $3.90 | $331,500 |
| Direct Manufacturing Labor | $2.75 | × | 1.12 | = | $3.08 | $261,800 |
| Power | $0.25 | × | 1.00 | = | $0.25 | $21,250 |
| Supervision Labor | $0.20 | × | 1.00 | = | $0.20 | $17,000 |
| Materials-handling labor | $0.35 | × | 1.00 | = | $0.35 | $29,750 |
| Maintenance Labor | $0.30 | × | 1.00 | = | $0.30 | $25,500 |
| Depreciation | $0.00 | × | = | $0.00 | $0 | |
| Rent, Property, taxes and administration | $0.00 | × | = | $0.00 | $0 | |
| Total | $7.60 | $8.08 | $686,800 |
Compute total fixed cost as follows
| Particulars | Fixed Cost in 2017 | × | Increase in Cost | = | Fixed Cost in 2018 |
| (A) | (B) | ||||
| Direct material | $0.00 | × | 1.04 | = | $0 |
| Direct Manufacturing Labor | $0.00 | × | 1.12 | = | $0 |
| Power | $0.00 | × | 1.00 | = | $0 |
| Supervision Labor | $48,000 | × | 1.00 | = | $48,000 |
| Materials-handling labor | $42,000 | × | 1.00 | = | $42,000 |
| Maintenance Labor | $36,000 | × | 1.00 | = | $36,000 |
| Depreciation | $95,000 | × | 1.06 | = | $100,700 |
| Rent, Property, taxes and administration | $110,000 | × | 1.11 | = | $122,100 |
| Total | $331,000 | $348,800 |
Requirement 2: Compute total manufacturing cost as follows
Total manufacturing cost in 2017 = Total manufacturing costs ÷ Number of units
= $939,000 ÷ 80,000 units
= $11.74 per unit
Estimated total manufacturing cost in 2018 = Total manufacturing costs ÷ Number of units
= $1,035,600 ÷ 85,000 units
= $12.18 per unit
Requirement 3: In the above case the costs are classified into variable and fixed costs based on qualitative rather than quantitative analysis. Quantitative analysis is a better alternative to estimate variable and fixed costs where regression analysis on cross-sectional data yields better estimates of fixed and variable costs. Disaggregation of costs into fixed and variable components helps in pricing the products, in managing costs and in identifying the products that generate positive contribution margin.
Add Answer to:
one and assification for e r Lurvey, a manter of products, reports the following manufacturing the...
Lurvey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification...
Lurvey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. E: (Click the icon to see the account information.) Lurvey, Inc., produced 80,000 units of product in 2017. Lurvey's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. (Click the icon to see the additional information.) Read the requirements. 2017 2018 Variable unit Total cost X...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 Click the icon to see the account classification.) Account classification Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit,...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 Click the icon to see the account classification.) Account classification Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit,...
Morin, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification...
Morin, Inc., a manufacturer of plastic products, reports the
following manufacturing costs and account analysis classification
for the year ended December 31, 2017.
Morin, Inc., produced 72500 units of product in 2017. Morin's
management is estimating costs for 2018 on the basis of 2017
numbers. The following additional information is available for
2018.
REQUIREMENTS
Data Table Account Classification Amount Direct materials All variable $ 326,250 Direct manufacturing labor All variable 217,500 Power All variable 54,375 Supervision labor 72,500 15% variable...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 9: (Click the icon to see the account classification.) Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit, Inc.,...
e products, reports the following manufacturing costs and Amount $300,000 225.000 37,500 56,250 60,000 100,000 C....
e products, reports the following manufacturing costs and Amount $300,000 225.000 37,500 56,250 60,000 100,000 C. a manufacturer of plastic products, reports the following manuru account analysis classification for the year ended December 31, 2012 Account Direct materials Classification Direct manufacturing labor All variable All variable Power All variable Supervision labor 20% variable Materials-handling labor 50% variable Maintenance labor 75,000 40% variable 95.000 Depreciation 0% variable Rent, property taxes, and administration 0% variable Gower's management is estimating costs for Gower,...
(0.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis...
(0.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2012. Account Classification Amount Direct materials All variable $300,000 Direct manufacturing labor All variable 225,000 Power All variable 37,500 Supervision labor 20% variable 56,250 Materials-handling labor 50% variable 60,000 Maintenance labor 40% variable 75,000 Depreciation 0% variable 95,000 Rent, property taxes, and administration 0% variable 100,000 Gower, Inc., produced 75,000 units of product in 2012. Gower's management...
(Q.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis...
(Q.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2012. Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 0% variable Amount $300,000 225,000 37,500 56,250 60,000 75,000 95,000 100,000 Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Gower, Inc., produced 75,000 units of product in 2012. Gower's management...
Manufacturing Cost Budget Hubert Products produces a product with the following st Unit Costs: Direct materials: Wo...
Manufacturing Cost Budget Hubert Products produces a product with the following st Unit Costs: Direct materials: Wood: 11 square feet at $25 $275 Hardware kits (screws, etc) 15 $ 290 Direct labor 0.5 hours at $36 per hour Variable overhead, per unit Total variable costs per unit $ 318 Fixed costs per month (rent, utilities, supervision) $75,000 Management plans to produce 9,000 units in April 2017. Prepared a manufacturing cost budget for April 2017. Hubert Products Manufacturing Cost Budget From...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.30 0.60 0.40 Fixed overhead costs per month are Supervision $3,800, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,100-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using...
Lurvey, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017. E: (Click the icon to see the account information.) Lurvey, Inc., produced 80,000 units of product in 2017. Lurvey's management is estimating costs for 2018 on the basis of 2017 numbers. The following additional information is available for 2018. (Click the icon to see the additional information.) Read the requirements. 2017 2018 Variable unit Total cost X...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 Click the icon to see the account classification.) Account classification Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit,...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 Click the icon to see the account classification.) Account classification Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit,...
Morin, Inc., a manufacturer of plastic products, reports the
following manufacturing costs and account analysis classification
for the year ended December 31, 2017.
Morin, Inc., produced 72500 units of product in 2017. Morin's
management is estimating costs for 2018 on the basis of 2017
numbers. The following additional information is available for
2018.
REQUIREMENTS
Data Table Account Classification Amount Direct materials All variable $ 326,250 Direct manufacturing labor All variable 217,500 Power All variable 54,375 Supervision labor 72,500 15% variable...
Benoit, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2017 9: (Click the icon to see the account classification.) Account Direct materials Direct manufacturing labour Power Supervision labour Materials-handling labour Maintenance labour Depreciation Rent, property taxes, and administration Classification Amount All variable $ 320,000 All variable 240,000 All variable 40,000 20% variable 68,000 40% variable 60,000 45% variable 80,000 0% variable 90,000 0% variable 125,000 Benoit, Inc.,...
e products, reports the following manufacturing costs and Amount $300,000 225.000 37,500 56,250 60,000 100,000 C. a manufacturer of plastic products, reports the following manuru account analysis classification for the year ended December 31, 2012 Account Direct materials Classification Direct manufacturing labor All variable All variable Power All variable Supervision labor 20% variable Materials-handling labor 50% variable Maintenance labor 75,000 40% variable 95.000 Depreciation 0% variable Rent, property taxes, and administration 0% variable Gower's management is estimating costs for Gower,...
(0.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2012. Account Classification Amount Direct materials All variable $300,000 Direct manufacturing labor All variable 225,000 Power All variable 37,500 Supervision labor 20% variable 56,250 Materials-handling labor 50% variable 60,000 Maintenance labor 40% variable 75,000 Depreciation 0% variable 95,000 Rent, property taxes, and administration 0% variable 100,000 Gower, Inc., produced 75,000 units of product in 2012. Gower's management...
(Q.4) Gower, Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2012. Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, and administration 0% variable Amount $300,000 225,000 37,500 56,250 60,000 75,000 95,000 100,000 Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Gower, Inc., produced 75,000 units of product in 2012. Gower's management...
Manufacturing Cost Budget Hubert Products produces a product with the following st Unit Costs: Direct materials: Wood: 11 square feet at $25 $275 Hardware kits (screws, etc) 15 $ 290 Direct labor 0.5 hours at $36 per hour Variable overhead, per unit Total variable costs per unit $ 318 Fixed costs per month (rent, utilities, supervision) $75,000 Management plans to produce 9,000 units in April 2017. Prepared a manufacturing cost budget for April 2017. Hubert Products Manufacturing Cost Budget From...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor Indirect materials Utilities $1.30 0.60 0.40 Fixed overhead costs per month are Supervision $3,800, Depreciation $1,000, and Property Taxes $900. The company believes it will normally operate in a range of 8,100-12,000 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2017 for the expected range of activity, using...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago