Managerial Accounting

Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Assume that the company uses predetermined overhead rates with Machine-hours as the allocation base in both departments. The department predetermined overhead rate in the Assembly Department is closest to: Casting Assembly Total Estimated total machine-hours (MHs) 3,000 2,000 5,000 Estimated total FixedMOH $17,700 $5,800 $23,500 Estimated VMOH cost per MH $1.50 $2.20

$5,800 ETFMOH + $4,400 = $10,200 ($2.20x2,000 EMHRS) $10,200 TMC / 2,000 EMHRS = $2.10 PERMHR

26. In September direct labor was 40% of conversion cost. If the manufacturing overhead for the month was $66,000 and the direct materials cost was $20,000, the direct labor cost was: A. $13,333 B. $44,000 C. $99,000 D. $30,000

(.4C) DM DL[44,000] MOH 20,000 66,000 (110) Prime Conversion =TMC 1) .4C + 66 = 1C 66=.6C C=110 110,000-66,000= 44,000

Last Year Minden Company Introduced a new product and sold 25,200 units of it at a price of $90 per unit. The products variable expenses are $60 per unit and its Fixed expenses are $834,000 per year. 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assume the company has conducted a marketing study that estimates it can increase annual sales of this product by 5,000 units for each $2 reduction in its SELLING PRICE. If the company will only consider price reductions in increments of $2 ($68, $66). What is the Maximum annual profit that it can earn on this product? what sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

1. ($90-$60) x 25,200 - $834,000 = (-78,000) 2. $834,000/30 = 27,800 Break even Units 27,800 Units x 90 = $2,502,000 Break even Sales 3. EXAMPLE: On 27,750 units sale company has break even i.e. no profit or no loss point so if sale price (90-2-2) = 88 then profit = (88-62)*35200-832500 = 82700 Selling Price $80 Variable EXP $60 80 x 50,200 = $4,016,000 Sales Revenue 60 x 50,200 = $3,012,000 Variable Cost $1,004,000 Contribution Margin $834,000 Fixed Cost NOI $170,000 4. FC $834,000 / 20 = 41,700 BE point in units 80 x 41,700 Units = $3,336,000

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit. Variable expenses are $40 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $2,240,000 -Variable Exp. $1,120,000 =CM $1,120,000 +FC $160,000 =NOI $960,000 1. What is the products CM Ratio? 2. Use the CM ratio to determine BE point in dollar sales? 3. Assume this years unit sales and total sales increase by 54,000 units and $4,320,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4a. What is the degree of operating leverage? 4b. Assume the president expects this years unit sales to increase by 19%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 14% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. If the sales managers ideas are implemented, how much will net operating income increase or decrease over the last year? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $960,000 net operating income as last year? Do not prepare an income statement; use the incremental analysis approach.

1. CM Ratio = CM PER(SP-VP) / SALES PRICE PER 50% = 40 / 80 2. BE point in dollars = FC / CM RATIO $320,000 = $160,000 / .5 3. Increas in OI = Increase Sales x CM RATIO $2,160,000 = $4,320,000 x .5 4a. DOL = CM / Operating Income 1.17 = $1,120,000 / $960,000 4b. %Increase OI = %Increase in sales x DOL 22 % = 19% x 1.17 5a. Units sold = Total Sales Rev / Sales Price Per Unit 28,000 Units = $2,240,000 / $80 SP 14%x80 SP = 68.8 SP Dec 25%x28,000 Units = 7,000 + 28,000= 35,000 Units Inc Sales $2,408,000 (68.8x35,000) -VC $1,400,000 (40x35,000) =CM $1,008,000 -FC $225,000 (Added 65,000 for ADV. cost) = Operating Income $783,000 5b. Original OI $960,000-$783,000= Decrease $177,000 6. CM Per unit = Sales per Unit - Variable exp. per unit $38 = 80 - (40+2) 28,000 Units x .25 Increase = 7,000 + 28,000= 35,000Units 35,000 Units x $38 = $1,330,000 Expected Cm $1,330,000 Expected Cm - $1,120,000 Present Cm = $210,000 Increase

Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 20X2: Direct materials $280,000 DM Direct labor (7,000 hours @ $11/hour) $ 77,000 DL Indirect labor $ 20,000 MOH Plant facility rent $ 60,000 MOH Depreciation on plant machinery and equipment $ 30,000 MOH Sales commissions $ 40,000 S/A Administrative expenses $ 50,000 S/A 42) The actual amount of manufacturing overhead costs incurred in June 20X2 totals: A) $110,000 B) $ 80,000 C) $200,000 D) $557,000 43) For June 20X2, manufacturing overhead was: A) underallocated B) overallocated C) neither overallocated nor underallocated D) indeterminable

42) $110,000 20,000 60,000 30,000 43) Applied = POHR X ACTUAL 105,000 = 15 X 7,000 MOH DR ACTUAL CR APPLIED 110,000 105,000 =5,000 Under

1) Paulson Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials...................................................................................................... $25,000 DM Direct labor...................................................................................................... 22,000 DL Advertising expense...................................................................................................... 15,000 S/A Rent on factory building...................................................................................................... 14,000 MOH Depreciation on factory equipment...................................................................................................... 6,000 MOH Indirect materials...................................................................................................... 10,000 MOH Sales salaries...................................................................................................... 28,000 S/A Utilities for administrative offices...................................................................................................... 9,000 S/A Paulson estimated that 40,000 direct labor hours would be worked. However, only 20,000 direct labor hours were actually worked during the year. The predetermined overhead rate per direct labor hour will be: A) $0.75. B) $1.00. C) $1.50. D) $2.00.

A) $0.75. POHR = EST. OH/ EST ACT.

41 For last year, Lewisburn Manufacturing reported the following: Revenue $420,000 Beginning inventory of direct materials, January 1 22,000 DM Purchases of direct materials 146,000 DM Ending inventory of direct materials, December 31 16,000 DM Direct manufacturing labor 18,000 DL Indirect manufacturing costs 40,000 MOH Beginning inventory of finished goods, January 1 35,000 COGS Cost of goods manufactured 104,000 COGM Ending inventory of finished goods, December 31 36,000 COGS Operating costs 140,000 How much of the above would be considered period costs for Lewisburn Manufacturing? A) $140,000 B) $390,000 C) $246,000 D) $104,000

A) $140,000

1) The net operating income for the year (in thousands of dollars) was: A) $150. B) $250. C) $290. D) $390.

A) $150. SALES -COGS =GROSS MARGIN -S/A =NOI

1) During the month of May, Bennett Manufacturing Company purchased $43,000 of raw materials. The manufacturing overhead totaled $27,000 and the total manufacturing costs were $106,000. Assuming a beginning inventory of raw materials of $8,000 and an ending inventory of raw materials of $6,000, direct labor must have totaled: A) $34,000. B) $38,000. C) $36,000. D) $45,000.

A) $34,000. BG RM Total MC=DM+DL+MOH +PURCHASES = RM AVAIL - END RM =RAW USED DM

32) Which of the following is a fixed cost for an automobile manufacturing plant? A) administrative salaries B) sales commissions C) electricity used by assembly-line machines D) windows for each car produced

A) administrative salaries

37) Total manufacturing costs equal: A) direct materials + conversion costs B) direct manufacturing labor costs + conversion costs C) direct manufacturing labor costs + prime costs D) direct materials + prime costs

A) direct materials + conversion costs

36) Period costs: A) include the cost of selling, delivering, and after-sales support for customers B) seldom influence financial success or failure C) include only fixed costs D) should be treated as an indirect cost rather than as a direct manufacturing cost

A) include the cost of selling, delivering, and after-sales support for customers

27. Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was: A. overapplied by $60,000 B. underapplied by $60,000 C. overapplied by $40,000 D. underapplied by $44,000

A. overapplied by $60,000 MOH DR ACTUAL CR APPLIED $1,240,000 $1,300,000 =$60,000 Over Appl 1) POHR = EST OH / EST ACT 2.00 = 1,200,000/ (50,000x12) 2) Applied = POHR X ACTUAL 1,300,000 = 2.00 x 650,000

Which of the following would be classified as a product-level activity?

Advertising a Product

Which of the following is an example of a period cost in a company that makes clothing?

Advertising cost for a new line of clothing

1) The cost of the raw materials used in production during the year (in thousands of dollars) was: A) $ 30. B) $ 90. C) $110. D) $130.

B) $ 90. BG RAW +PURCH =RAW AVAIL -END RAW =RM USED

1) Using the following data, calculate the beginning work in process inventory. Cost of goods sold $70 Direct labor $20 Direct materials used $15 Direct material purchased $25 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Manufacturing overhead applied $35 The beginning work in process inventory is: A) $15. B) $20. C) $25. D) $55.

B) $20. BG WIP +DM USED +DL +MOH APPLIED =WIP AVAIL - END WIP =COGM

1) During the month of May, direct labor cost totaled $10,000 and direct labor cost was 20% of prime cost. If total manufacturing costs during May were $86,000, the manufacturing overhead was: A) $10,000. B) $36,000. C) $40,000. D) $50,000.

B) $36,000. (10,000=.20P) [$36,000] DM DL MOH (50,000) Prime Conversion =TMC $86,000 Step 1) 10,000 = .20P = 50,000 Step 2) TMC 86,000 - PRIME 50,000 = $36,000 MOH

38) Which of the following formulas determine cost of goods sold in a manufacturing entity? A) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold B) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold C) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold D) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

B) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

1) Within the relevant range: A) variable cost per unit decreases as production decreases. B) fixed cost per unit increases as production decreases. C) fixed cost per unit decreases as production decreases. D) variable cost per unit increases as production decreases.

B) fixed cost per unit increases as production decreases.

1) Which of the following companies would be most likely to use a job-order costing system rather than a process costing system? A) fast food restaurant B) shipbuilding C) crude oil refining D) candy making

B) shipbuilding

The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small base salary) in order to encourage them to be aggressive in their sales efforts. The following worksheet contains cost and revenue data for Shop 48 and is typical of the company's many outlets: Per Pair of Shoes Selling Price $25 Variable Expenses: -Invoice Cost $11.50 -Sales Commission $3.50 =Total Variable Cost $15.00 Annual Fixed Expenses: Advertising $32,000 Rent $17,000 Salaries $110,000 Total Fixed Expenses $159,000 Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager .50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop's net operating income or loss if 18,600 pairs of shoes are sold?

BE POINT= FC$159,000 / CM PER $10 (25-15) = 15,900 BE Units Net operating = (Units sold-Break-Even Point) =(Sales Per Unit-Revised Variable cost per) =(18,600-15,900) x ($25SP-(15VC+.50)) = Net operating Income $25,650

1) The cost of goods manufactured (finished) for the year (in thousands of dollars) was: A) $490. B) $500. C) $510. D) $590.

C) $510. BG WIP +DM +DL +MOH APPLIED =WIP AVAIL -END WIP =COGM

30) The Standards of Ethical Conduct for management accountants include concepts related to: A) experience, integrity, reporting, and objectivity B) competence, performance, integrity, and reporting C) competence, confidentiality, integrity, and credibility D) None of these answers are correct.

C) competence, confidentiality, integrity, and credibility

1) Inventoriable costs are also known as: A) variable costs. B) conversion costs. C) product costs. D) fixed costs.

C) product costs.

1) For internal uses, managers are more concerned with receiving information that is: A) completely objective and verifiable. B) completely accurate and precise. C) relevant, flexible, and immediately available. D) relevant, completely accurate, and precise.

C) relevant, flexible, and immediately available.

CHAPTER 1

CHAPTER 1

CHAPTER 3

CHAPTER 3

CHAPTER 7

CHAPTER 7

CHAPTER 2

Chapter 2

Tirri Corporation has provided the following information: Cost Per Unit Cost Per Period Direct materials $7.00 Direct labor $4.10 VMOH $1.50 FMOH $23,400 Sales comish $1.10 V/admin exp $0.80 F/ admin exp $7,800 If the selling price is $27.10 per unit, the contribution margin per unit sold is closest to:

Contribution margin per unit = Selling price - (Direct materials + Direct labor + Variable manufacturing overhead + Sales commissions + Variable administrative expense) = $27.10 - ($7.00 + $4.10 + $1.50 + $1.10 + $0.80) = $12.60

1) Which of the following statements are true regarding financial and managerial accounting? I. Both are mandatory. II. Both rely on the same underlying financial data. III. Both emphasize the segments of an organization, rather than just looking at the organization as a whole. IV. Both are geared to the future, rather than to the past. A) I, II, III, and IV B) Only II, III and IV C) Only II and III D) Only II

D II. Both rely on the same underlying financial data.

1) The cost of goods sold for the year (in thousands of dollars) was: A) $460. B) $510. C) $520. D) $560.

D) $560. BG FG +COGM =COGAS - END FG =COGS

1) Parsons Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Last year Parsons incurred $250,000 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied in the amount of $12,000 for the year. If the predetermined overhead rate was $8.00 per direct labor hour, how many hours were worked during the year? A) 31,250 hours B) 30,250 hours C) 32,750 hours D) 29,750 hours

D) 29,750 hours MOH DR ACTUAL CR APPLIED $250,000 $238,000 $12,000 UNDER Applied = POHR x Actual Activity 238,000 = 8.00 x ? 29,750 Hours = ?

1) Conversion cost consists of which of the following? A) Manufacturing overhead cost. B) Direct materials and direct labor cost. C) Direct labor cost. D) Direct labor and manufacturing overhead cost.

D) Direct labor and manufacturing overhead cost.

1) For a manufacturing company, which of the following is an example of a period rather than a product cost? A) Depreciation of factory equipment. (MOH) B) Wages of factory managers. (MOH) C) Wages of machine operators. (DL) D) Insurance on equipment used by the sales staff. (S/A)

D) Insurance on equipment used by the sales staff. (S/A PERIOD COST)

1) Direct labor is generally considered to be a: Prime cost Product cost A) No Yes B) No No C) Yes No D) Yes Yes

D) YES YES

1) Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the: A) total variable cost will remain unchanged. B) total fixed costs will increase in total. C) variable cost per unit will increase. D) average total cost per unit will decrease.

D) average total cost per unit will decrease.

35) For a manufacturing company, direct labor costs may be included in: A) direct materials inventory only B) direct materials inventory, work-in-process inventory, and finished goods inventory accounts C) merchandise inventory only D) both work-in-process inventory and finished goods inventory

D) both work-in-process inventory and finished goods inventory

29) Management accounting is considered successful when it: A) is relevant and reported annually B) helps creditors evaluate the company's performance C) is accurate D) helps managers improve their decisions

D) helps managers improve their decisions

31) Variable costs: A) can always be traced directly to the cost object B) are always indirect costs C) include most personnel costs and depreciation on machinery D) increase in total when the actual level of activity increases

D) increase in total when the actual level of activity increases

24) The Watts Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates: What predetermined overhead rates would be used in Dept A and Dept B, respectively? A. 50% and $8.00 B. 50% and $5.00 C. $15 and 110% D. 200% and $5.00

D. 200% and $5.00 POHR= EST OH / EST ACT A B 60,000/30,000 50,000/10,000 =200% =$5.00

The accounting Records of Omar Corporation contained the following information for last year: Beginning Ending DM Inventory $9,000 $7,000 WIP Inventory $17,000 $31,000 Finished Good Inv. $10,000 $15,000 Manufacturing Costs Incurred DM Used $72,000 Overhead Applied $24,000 DL Cost (10,000 Hours) $80,000 Depreciation $10,000 Rent $12,000 Taxes $8,000 Unadjusted COGS $157,000 Selling/ Admin Costs Incurred Advertising $35,000 Rent $20,000 Clerical $25,000

DM Used $72,000 Overhead Applied $24,000 DL Cost $80,000 = TMC $ 176,000 COGM=TMC+BG WIP-END WIP COGM=176,000+17,000-31,000 COGM= $162,000

The following cost data pertain to the operations of Quinonez Department Store, Inc. for the month of September: Corporate headquarters building lease $84,600 Cosmetics Department sales commissions $5,740 Corporate legal office salaries $59,900 Store manager's salary- $11,700 Heating $16,800 Cosmetics Department cost of sales $33,300 Central warehouse lease cost $6,500 Store security- $15,800 Cosmetics Department manager's salary $4,870 The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are DIRECT COSTS of the Cosmetics Department?

Direct costs of cosmetic department = Cosmetic department sales commission + Cosmetic department cost of sales + Cosmetic department manager salary = $5740+$33,300+$4,870 = $43,910 ARE NOT DIRECT COSTS: The following are not the direct cost: Corporate Headquater building Lease Corporate Lega Office salaries Central Warehouse Lease cost

During June, Buttery Corporation incurred $78,000 of direct labor costs and $18,000 of indirect labor costs. The journal entry to record the ACCURAL of these wages would include a:

Dr: WIP 78,000 Dr: MOH 18,000 Cr: Salaries and wages payable 96,000

END OF CHAPTER 1

END OF CHAPTER 1

END OF CHAPTER 2

END OF CHAPTER 2

END OF CHAPTER 3

END OF CHAPTER 3

Giannitti Corporation bases Its Predetermined overhead rate on the ESTIMATED MACHINE-HOURS for the upcoming year. Data for the upcoming year appears below: Estiamted Machine Hours 72,900 EVMOH $3.40 per machine hour ETotalFMOH $838,780 The Predetermined overhead rate for the recently completed year was closest to:

ETOTALMOH= $838,780 + ($3.40x72,900) = $1,086,640 POR= EST TOTAL MOH / EST TOTAL ALLOCATION BASE 1,086,640 / 72,900 = = $14.91 Per Machine Hour

EXAM 1 PRACTICE QUESTIONS

EXAM 1 PRACTICE QUESTIONS

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?

Gross Margin will increase

25. Beaver Company used a predetermined overhead rate last year of $2 per direct labor-hour, based on an estimate of 25,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual MOH Cost Incurred.................. $47,000 Actual DL Hours Worked...................... 24,000 The underapplied or overapplied overhead last year was: A. $1,000 underapplied B. $1,000 overapplied C. $3,000 overapplied D. $2,000 underapplied

MOH DR ACTUAL CR APPLIED $47,000 $48,000 =$1,000 OverApp Applied = POHR X ACTUAL DLHRS

Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Fabrication 40,000 Machine Hours Order Processing 250 Orders Other Not Applicable The other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. Wages and Salaries $480,000 Depreciation $200,000 Occupancy $220,000 Total $900,000 Fabricating Processing Other Total Wages and salaries 40% 35% 25% 100% Depreciation 20% 50% 30% 100% Utilities 40% 35% 25% 100% The activity rate for the ORDER PROCESSING activity cost poo; is closest to:

Order Processing Wages / Salaries ($480,000x35%) = $168,000 Depreciation ($200,000x50%) = $100,000 Occupancy ($220,000x35%) = $77,000 Total Cost Allocated $345,000 $345,000 Total / 250 Orders Processed = $1,380 Costs per Order Processed

Crich Corporation uses DIRECT LABOR-HOURS in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,200 hours and the total estimated manufacturing overhead was $594,960. At the end of the year, actual direct labor-hours for the year were 22,150 hours and the actual manufacturing overhead for the year was $594,960. Overhead at the end of the year was:

POR = Total Overhead Cost ÷ Total Direct Labor Hour $594,960 / 22,200 =$26.80​ POR Per Direct Labor Hour Applied amount =Estimated Overhead Cost −Actual Over head Cost =($26.80×22,150)−$594,960 =$1,340​ Under Applied

Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 15,600 13,600 Direct labor-hours 5,600 6,800 Total fixed MOH $95,160 $58,480 Variable MOH perMHr. $2.30 Variable MOH per direct labor-hour $4.50 During the current month the company started and finished Job T138. The following data were recorded for this job: Job T138: Casting Customizing Machine-hours 100 30 Direct labor-hours 12 80 The amount of overhead applied in the Customizing Department to Job T138 is closest to:

Pre−determined overhead rate = Direct labor hours/ Total fixed manufacturing cost ​=6,800 / $58,480​ = $8.6 per direct labor hour​ Overhead Applied to Jobs: Variable MOH Applied ($4.5x80) = $360 Fixed MOH Applied ($8.6x80) = $688 TOTAL OVERHEAD $1,048

1) The cost of insurance for a manufacturing plant is generally considered to be a: Prime cost Product cost A) No Yes B) No No C) Yes No D) Yes Yes

Prime cost Product cost A) No Yes Prime Cost = DM + DL Product Cost = DM + DL + MOH

Thach Corporation uses a Job-Order Costing system with a single plantwide predetermined overhead rate based on machine hours. The company based its Predetermined overhead rate for the current year on TOTAL FIXED MANUFACTURING OVERHEAD COST of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following: Number of units in the job 30 Total Machine-hours 90 DM $630.00 DL Cost $2,880

Product cost = DM + DL + vmoh + fmoh =( 630 DM + 2,880 DL+ (90*3) + (665,000 FCMOH/ 70000 Machine hrs *90)) /30 Units of Job = 154.50

The following information pertains to Alleigh's Mannequins: Manufacturing costs $1,500,000 Units manufactured 30,000 Units sold 29,500 units sold for $85 per unit Beginning inventory 0 units 34) What is the amount of gross margin? A) $1,032,500 B) $2,507,500 C) $1,475,000 D) $1,500,000

SALES -COGS =GM

Cumberland Enterprises makes a variety of products that it sells to other businesses. The company's activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below: Cost Pool Activity Measure Activity Rate Supporting Assembly DLH $5.65 per DLH Process. Batches # Of Batches $146.65 Per Bat Process. Orders # Of Orders $80.05 Per Order Serving Customers # Of Customers $2,663 Per Cust The cost of serving customers, $2,663.00 per customer, is the cost of serving a customer for one year. Steckman Corporation buys only one of the company's products which Cumberland Enterprises sells for $22.05 per unit. Last year Steckman Corporation ordered a total of 1,200 units of this product in 4 orders. To fill the orders, 8batches were required. The direct materials cost is $7.65 per unit and the direct labor cost is $5.20 per unit. Each unit requires 0.30 DLHs. According to the ABC system, the customer margin for this customer this past year was closest to:

Sales (1,200 Units x $22.05 per unit) = $26,460 - Costs DM (7.65 X 1,200) = $9,180 DL (5.2 X 1,200) = $6,240 SA (5.56 X 0.30 X 1,200) = $2,034 PB (146.65 X 8) = $1,173.20 PO (80.05 X 4) = $320.20 SC = $2,663 Total Cost =$21,610.40 Customer Margin =$4,849.60

During the month of September, direct labor cost totaled $13,600 and direct labor cost was 40% of prime cost. If total manufacturing costs during September were $78,700, the manufacturing overhead was: ANSWER: $44,700

Step 1: Prime cost = Percentage of prime cost Labor cost​=40%$13,600​=$34,000​ Hence, the prime cost is $34,000. Step 2: MOH COST = Total manufacturing cost−Prime cost =$78,700−$34,000=$44,700​

Tomasini Corporation has provided the following data from its activity-based costing accounting system: Supervisor Wages $610,000 Factory Supplies $210,000 Activity CoST Pool BP UP Other Total Supervisor Wages 30% 65% 5% 100% Factory Supplies 45% 35% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much supervisory wages and factory supplies cost would NOT be assigned to products using the activity-based costing system?

Supervisor Wages ($610,000 x 5%) = 30,500 Fcatory Supplies ($210,000 x 20%) = 42,000 Total Not Assigned 72,500

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be:

Toal direct labor = (37*$24)=$888 Total overheads = (33*194)=$6402 Hence total cost for the job = Direct materials + Direct labor + OVerheads =(2057+888+6402)=$9347

Lakatos Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs: Cost: Wages and salaries $420,000 Depreciation $240,000 Occupancy $220,000 Total $880,000 Fabricating Processing Other Total Wages and salaries 10% 75% 15% 100% Depreciation 5% 50% 45% 100% Utilities 30% 35% 35% 100% How much cost, in total, would be allocated in the first stage allocation to the FABRICATING activity cost pool?

Total Fabricating Cost: Wages and Salaries (10% x $420,000) = $42,000 Depreciation (5% x $240,000) = $12,000 Occupancy (30% x $220,000) = $66,000 Total = 120,000

1) When the level of activity increases within the relevant range, how does each of the following change?

Total Per Unit VC Change-Direct Same FC Same Change-Inverse MC Chnage-Direct Change-Direct

The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just completed year. Sales .............................................................................................................. $950 Raw materials inventory, beginning .............................................................................................................. $10 Raw materials inventory, ending .............................................................................................................. $30 Purchases of raw materials .............................................................................................................. $110 Direct labor .............................................................................................................. $180 Manufacturing overhead applied.............................................................................................................. $230 Administrative expenses .............................................................................................................. $100 Selling expenses .............................................................................................................. $140 Work in process inventory, beginning .............................................................................................................. $70 Work in process inventory, ending .............................................................................................................. $60 Finished goods inventory, beginning .............................................................................................................. $100 Finished goods inventory, ending .............................................................................................................. $50 Use these data to answer the following series of questions.

Use this for the following 4 questions

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the manufacturing overhead overapplied or underapplied for the year?

https://www.chegg.com/homework-help/questions-and-answers/following-accounts-last-year-s-books-sharp-manufacturing-raw-materials-bal-0-b-154-200-164-q26677576

Topper Sports Standard Deluxed Pro SP Per Rachet $65 $100 $145 Variable Expenses Per Production $39 $42 $58 Selling (5% of selling price) $3.25 $5 $7.25 Per Month FC Production $150,000 Adv. Expense $130,000 Admin Sal. $80,000 Total $360,000 Sales Units Standard Deluxed Pro Total April 11 2,000 1,000 5,000 8,000 May 8,000 1,000 3,000 12,000 1a. Prepare Contribution format Income Statement for April

https://www.chegg.com/homework-help/sales-mix-multiproduct-break-even-analysistopper-sports-inc-chapter-5-problem-24p-solution-9780078111006-exc

An example of a committed fixed cost would be:

taxes on real estate