Solution: The correct option is “B” i.e $ 160000(see note below)
NOTE: Standard Direct Labor Cost for
Production Volume=4000 units
Standard Direct Labor hours per unit= 2 hours/unit
Standard Direct Labor rate= $ 20/hour
Standard Direct Labor Cost=$20/hour*2 hours *4000 units=$ 160,000
Seaworthy Designs manufactures special metallic materials and decorative Alings for my yachts that require highly skilled...
8. PM Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled labor. PM uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 2 pounds per unit; $3 per pound Direct labor: 5 hours per unit; $16 per hour PM produced 5,000 units during the quarter. At the end of the quarter,...
merald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows: Direct materials: 1 pound per unit; $12 per pound Direct labor: 4 hours per unit; $15 per hour Emerald produced 5,000 units during the quarter. At the end of the quarter,...
Morgan Designs manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Total Per Unit Sales (20,000 units) $50.00 Direct materials $1,000,000 $200,000 $50,000 $10.00 Direct labor (variable) $2.50 Manufacturing overhead: Variable $3.50 $70,000 $80,000 Fixed $4.00 Selling & administrative: Variable $100,000 $5.00 Fixed $30,000 $1.50 If the per unit variable production costs increase by 15%, and fixed selling and administrative costs increase by 12%, what will be the new break-even point in dollar...
Digital Art manufactures decorative wall hangings. The company uses standard costs to prepare its flexible budget. For the second quarter of 20x8, direct material and direct labor standards for the company’s most popular product were as follows: Direct material: 1 pound per unit; $12 per pound Direct labor: 4 hours per unit; $15 per hour During the quarter, Digital produced 5,000 units. At the end of the quarter, materials records showed that the company used 7,000 pounds of materials, with...
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41) 41) A comeany s seting its dirr materia and drct laor standards for its eading product. Direct materials cost from e supper are 19per square ootet of purdhase discount Freight-in foot Basic wages of the oemery ine personnel are $14 per hour amourts to so p matety 21% of wg Barets amount to $2 per hour How much is the Payroll taxes are appr die O) $1600 AL ats cot standard per square foor 91500...
Morgan Designs manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Total Per Unit $50.00 Sales (20,000 units) Direct materials $1,000,000 $200,000 $10.00 $50,000 $2.50 Direct labor (variable) Manufacturing overhead: Variable $70,000 $3.50 Fixed $80,000 $4.00 Selling & administrative: Variable $100,000 $5.00 Fixed $30,000 $1.50 Required: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in dollar sales. d. Margin of safety percentage. e. If the sales volume increases by 20%, with...
FINAL EXAM-OL 3400 (A) Adam was reviewing the water bill for her dog day care and spa and determined that her highet bill, 55,000, occurred in Jaly when she washed 500 dogs and her lowest bill, $3,600, ocourrod in February when she wawhed 325 dogs What was the Fariabie Cont per dog associated wh Adam's water bil? Michigan City reported actual operating income for the current year as 566,000. The flexible bodget operating income for actual volume is $$6,000, while...
illuminate Corporation manufactures and sella two types of decorative lampa, Knox and Ayer. It expects to manufacture 26,000 Knox lamps and 14,000 Ayer lampa in 2017. The following data are available for the year 2017. (Click the icon to view the information.) (Click the icon to view the December 31, 2017 preduction budget in units.) Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3AX: (b) the direct materials purchase budget in quantity and dollars...
1. The master budget A. Shows forecasted and actual results B. Reflects controllable costs only C. Can be used to determine manufacturing cost variances D. Contains the operating budget 2. The master (comprehensive) budget A. Shows the forecasted and actual results B. Reflects controllable costs only C. Can be used to determine manufacturing cost variances D. Contains both financial and operating budgets 3. Zero-base budgeting has which of the following as its objective? A. To base the current year's budget...
Variance Analysis P9-A Onion Company manufactures a product known as Teardrops. Standard Costs for Direct Materials and Direct Labor (budget for one unit) Standard Quantity or Hours 3.0 pounds 4.0 hours Standard Price or Rate $ 4.00 $14.00 Standard Cost $ 12.00 56.00 Direct Materials Direct labor X х The following actual data resulted in the production of 6,000 units: a) Materials purchased 19,000 pounds at a cost of $4.20 per pound. All of the materials were used. b) Worked...