The cost of manufacturing (direct material and direct labor) is 75% of sales. Profit is 5%...
- The cost of manufacturing (direct material and direct labor) is 75% of sales. Profit is 5% of sales. You should now be able to determine the remaining overhead (fixed costs). Determine the profit improvement if, through better planning and control, the cost of manufacturing was reduced from 75% of sales to 70% of sales.
Homework Answers
Cost = Fixed cost + Variable cost
If Variable cost is 75% and the profit is 5%, thus fixed cost is 20%.
Now, due to improvements being made, variable cost fell to 70% and fixed cost remains the same, profit rises by 5% to a total of 10%.
Add Answer to:
The cost of manufacturing (direct material and direct labor) is
75% of sales. Profit is 5%...
If the cost of manufacturing (direct material and direct labor) is 45 % of sales and...
If the cost of manufacturing (direct material and direct labor) is 45 % of sales and overhead is 16 % of sales, what would be the profit percentage?
Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and...
Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit T-SHIRTS 192,000 units $17.00 $1.70 $4.30 $3.50 $ 7.50 $4.10 $3.40 SWEATSHIRTS 24,000 units $29.00 $5.00 $ 7.20 $ 3.00 $13.80 $7.00 $ 6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Inspection Activity cost $123,480 $104,800 Activity-cost driver Direct labor hours (DLH Inspections | Activities demanded...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $35.00 and the company made and sold 10,000 units. What is the gross profit per unit? Answer: age
Data Markup on job cost 75% Milling Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable...
Data Markup on job cost 75% Milling Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Cost summary for Job 407 Department Milling Assembly 90 Machine-hours Direct labor-hours Direct materials Direct labor cost $800 $70 20 $370 $280 Enter a formula into each of the cells marked with a ? below Assembly Step 1: Calculate the estimated total manufacturing overhead...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead = $3 Fixed Selling Expense = $3 Fixed Admin Expense = $2 Sales commission = $1 Variable Admin Expense $.50 If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
A. 2,865,721 B. 3,144,471 C. 2,805,721 D. 2,790,721 $3,800,000 Sales Cost of sales: Direct material Direct...
A. 2,865,721
B. 3,144,471
C. 2,805,721
D. 2,790,721
$3,800,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $530,000 400,000 290,000 750,000 1,970,000 $1,830,000 780,000 280,000 1,060,000 $ 770,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $60,000 increase in fixed costs. The break-even point for next year...
Chapter 2: Applying Excel Data Markup on job cost 75% Machine-hours Direct labor-hours Total fixed manufacturing...
Chapter 2: Applying Excel Data Markup on job cost 75% Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Cost summary for Job 407 Machine-hours Direct labor-hours Direct materials Direct labor cost Department Milling Assembly 90 20 $800 $370 $280 $70 Enter a formula into each of the cells marked with a ? below Assembly Step 1: Calculate the...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead...
Direct material = $7 Direct Labor = $4 Variable Manufacturing Overhead = $2 Fixed Manufacturing Overhead = $3 Fixed Selling Expense = $3 Fixed Admin Expense = $2 Sales commission = $1 Variable Admin Expense $.50 (Costs are when 10,000 units are produced and sold) Relevant range is 7,500-12,500 units 1) If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced? 2) If 12,500 units are produced, what is the average fixed manufacturing cost per...
Select the correct definition for the following costs. Direct material costs Direct manufacturing-labor costs Manufacturing overhead...
Select the correct definition for the following costs. Direct material costs Direct manufacturing-labor costs Manufacturing overhead costs Prime costs Conversion costs A. All direct manufacturing costs. B. All manufacturing costs other than direct material costs. C. Compensation of all manufacturing labor that can be traced to the cost object. D. Costs of all materials that can be traced to the cost object. E. All manufacturing costs related to the cost object but cannot be traced to the cost object
TI Blender Electric Mixer $ $ Direct material 15 28 Direct labor 36 Manufacturing overhead@ $40...
TI Blender Electric Mixer $ $ Direct material 15 28 Direct labor 36 Manufacturing overhead@ $40 per machine hour Cost if purchased from an outside supplier Annual demand (units) 40 80 62 130 31,000 40,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $20. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 66,000 machine hours...
Production and sales volume Selling price Direct material Direct labor Manufacturing overhead Gross profit Selling and administrative Operating profit T-SHIRTS 192,000 units $17.00 $1.70 $4.30 $3.50 $ 7.50 $4.10 $3.40 SWEATSHIRTS 24,000 units $29.00 $5.00 $ 7.20 $ 3.00 $13.80 $7.00 $ 6.80 Tiger Pride's managers have decided to revise their current assignment of overhead costs to reflect the following ABC cost information: Activity Supervision Inspection Activity cost $123,480 $104,800 Activity-cost driver Direct labor hours (DLH Inspections | Activities demanded...
Per unit cost Per period Cost Direct Material 3.00 Direct Labor 7.00 Variable Manufacturing Overhead 1.00 Fixed Manufacturing Overhead 40,000 Variable Selling expense 2.00 Fixed Selling expense 15,000 The Selling price per unit is $35.00 and the company made and sold 10,000 units. What is the gross profit per unit? Answer: age
Data Markup on job cost 75% Milling Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Cost summary for Job 407 Department Milling Assembly 90 Machine-hours Direct labor-hours Direct materials Direct labor cost $800 $70 20 $370 $280 Enter a formula into each of the cells marked with a ? below Assembly Step 1: Calculate the estimated total manufacturing overhead...
A. 2,865,721
B. 3,144,471
C. 2,805,721
D. 2,790,721
$3,800,000 Sales Cost of sales: Direct material Direct labor Variable overhead Fixed overhead Gross profit Selling and General & Admin. Exp. Variable Fixed Operating income $530,000 400,000 290,000 750,000 1,970,000 $1,830,000 780,000 280,000 1,060,000 $ 770,000 For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $60,000 increase in fixed costs. The break-even point for next year...
Chapter 2: Applying Excel Data Markup on job cost 75% Machine-hours Direct labor-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Milling Assembly 60,000 3,000 8,000 80,000 $390,000 $500,000 $2.00 $3.75 Cost summary for Job 407 Machine-hours Direct labor-hours Direct materials Direct labor cost Department Milling Assembly 90 20 $800 $370 $280 $70 Enter a formula into each of the cells marked with a ? below Assembly Step 1: Calculate the...
TI Blender Electric Mixer $ $ Direct material 15 28 Direct labor 36 Manufacturing overhead@ $40 per machine hour Cost if purchased from an outside supplier Annual demand (units) 40 80 62 130 31,000 40,000 Past experience has shown that the fixed manufacturing overhead component included in the cost per machine hour averages $20. Kitchen Magician's management has a policy of filling all sales orders, even if it means purchasing units from outside suppliers. Required: 1. If 66,000 machine hours...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago