Acct 2302

Tempos Inc sells and installs furnaces for 3000 per furnace. Y=125000+1800X. If it sold and installed 500 last year , what is its total contribution margin last year?

$600,000 Because sales revenue( $3000x500 furnaces) =1500000 Variable expenses (1800x500)=900 Add both = 600,000

What is the total expected main ace cost of the activity level 8700 machine hours

2000 because variable cost =0 and fixed cost element =2000 ( subtract both numbers at beginning of question) 10,000-8000=2000

The following cost were incurred in August:

Add direct Labor and manufacturing overhead = answer (Conversion cost during the month totaled )

Ivory company uses a job-order costing system . What year end journal entry could Ivory make to dispose of (close out) $4,150 of over-applied manufacturing overhead cost?

Manufacturing overhead ( debit /left side) = $4150 Cost of goods sold ( credit/right side) =$4150

An example of a cost that is variable with respect to the number of units produced and sold is:

Power to run production equitment

Direct Labor

Prime cost consists of direct materials combined with :

An example of period cost is:

Rent or a headquarters building.

Conversion cost NO ,manufacturing cost YES, Prime cost YES.

The cost of direct materials are classified as :

The linear equation Y=a+bX is often used to express cost formulas. In this equation:

The term b represents variable cost per unit of activity.

Remains constant as activity changes

Within the relevant range, the variable cost per unit:

In a job -order costing system , direct labor costs usually are recorded initially with a debit to:

Work in Process