Answered: Calculate the deficiency in labour…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...

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Covine Ltd is a company that makes three products and the variable costs are as follows;                                                             A                    B                    C                                                             £                      £                      £          Direct materials                                12                   13                   15 Direct labour (£12 per hour)          24                   36                   36 Variable overhead                           1                      2                      2                                                             37                   51                   53 The sale price of A is £42, B is £57 and C is £56. During the month of June the availability of Direct Labour is limited to 12,000 hours due to staff taking holidays. Sales demand is expected to be 3000 units of A, 3000 units of B and 2000 of C. Monthly fixed costs are £20,000 and opening stocks are zero.…
Covine Ltd is a company that makes three products and the variable costs are as follows;                                                             A                    B                    C                                                             £                      £                      £          Direct materials                                12                   13                   15 Direct labour (£12 per hour)          24                   36                   36 Variable overhead                           1                      2                      2                                                             37                   51                   53 The sale price of A is £42, B is £57 and C is £56. During the month of June the availability of Direct Labour is limited to 12,000 hours due to staff taking holidays. Sales demand is expected to be 3000 units of A, 3000 units of B and 2000 of C. Monthly fixed costs are £20,000 and opening stocks are zero.…
A company makes two products, the variable costs are as follows;                                                                                     Product A        Product B                                                                                            £                      £                      Direct materials                                                           1                      3 Direct labour (£6 per hour)                                         6                      3 Variable overhead                                                       1                      1                                                                                     8                      7 The sale price of A is £14 and B is £11. During the month of July the availability of Direct Labour is limited to 5000 hours due to staff taking holidays. Sales demand is expected to be 3000 units of A and 5000 units of B. Monthly fixed costs are £20,000 and opening stocks are zero.…
Question 1: Relevant costs and CVP Cove Ltd is a company that makes three products and the variable costs are as follows; A B C £ £ £ Direct materials 12 13 15 Direct labour (£12 per hour) 24 36 36 Variable overhead 1 2 2 37 51 53 The sale price of A is £42, B is £57 and C is £56. During the month of June the availability of Direct Labour is limited to 12,000 hours due to staff taking holidays. Sales demand is…
Platinum Co. is an English manufacturing company whose total factory overhead costs fluctuate somewhat from month to month according to the number of machine-hours worked in its production facility. These costs (in English pounds) for the three months in summer are given below. Unfortunately, the costs are incomplete. Level of Activity June July August Machine-hours 46,500 62,000 51,150 Total factory overhead costs £214,700 £236,400 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 46,500 machine-hours level of activity as follows: Indirect materials (variable) £51,150 Rent (fixed) 123,000 Maintenance (mixed) 40,550 Total factory overhead costs £214,700 Platinum Co. (above) is considering using a predetermined overhead rate based on capacity. Capacity of the factory 64,000 Machine hours Manufacturing OH cost at the capacity £256,000 If Platinum used the capacity based predetermined rate to apply…
a company produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 9 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000
Pinter Corporation produces three products and is currently short on machine hours since one of its two machines is down; only 880 machine hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Product A $ 9.00 Product B Product C $ 7.00 $ 9.00 Variable cost per unit Machine hours per unit $ 7.50 $ 6.00 0.75 0.25 $ 6.00 1.00 Demand (units) 700 610 How many of each product should be produced while the machine is down to maximize profit? 800
vy, Inc., produces a single product that sells for $60 per unit. There were no inventories of work in process or finished goods. Costs for the year were as follows: Variable costs: Direct materials Direct labor Manufacturing overhead Selling expenses Fixed costs Manufacturing overhead Selling and administrative During the first three months of the year, production and sales in units were as follows: Production Sales January February March 4,000 4,000 4,000 b. $8 per unit $12 per unit $5 per unit $3 per unit $36,000 per month $15,000 per month 4,000 3,500 4,500 The company uses an actual cost system. There were no work-in-process inventories at the end of any month. Required: a. Determine the unit cost of production under variable costing and absorption costing for the Feb & March months. Determine income under variable and absorption costing for Feb & March months
Bacolod Company, which manufactures and sells a single product for P15.00, is operating at full capacity of 20,000 units per month. The following unit costs relate to the manufacture of this product: Manufacturing: Direct materials Direct labor Variable overhead Fixed overhead P 2.00 4.00 1.00 1.80 Selling and administrative: Variable Fixed 3.00 1.20 The company has 1,000 units left over from last year's production which have small defects and which will have to be sold at a reduced price as part of a clearance sale provided that it will be refurbished at a cost of P1.50 per unit and there will be a need to purchase a special tool costing P 2,000 which will have no other use other than the refurbishing. Also, 50% of variable selling and administrative costs would have to be incurred to sell the defective units. The sale of the left over might affect the company's regular sale which may decrease by 500 units. Another option that Bacolod has is to simply sell the 1,000 units at its scrap…
Seved Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are: Per unit $34 25 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fired manufactaring overhead 12 $99 Total unit cost An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is the mexinum price Olive Carp. should pay the outside supplier? Mtcle Ohoice $87 $97 $99
Pasadena Corporation produces three products, and currently has a shortage of machine hours since one of its two machines is down; only 450 hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows: Sales price Variable cost per unit Machine hours per unit Required: Product A $ 10.25 Product B $ 9.00 Product C $ 5.00 1.75 $ 4.00 1.00 $ 2.50 $ 2.00 0.25 a. What is the contribution margin per unit for each product? b. What is the contribution margin per machine hour for each product? c. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the contribution margin per direct labor hour for each product? Note: Round your intermediate calculations to 2 decimal places. Contribution Margin per Machine Hour Product A Product B Product C
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct material: 4 pounds at $9.00 per pound Direct labor: 3 hours at $15 per hour Variable overhead: 3 hours at $6 per hour Total standard variable cost per unit The company also established the following cost formulas for its selling expenses: Advertising Sales salaries and commissions Shipping expenses Fixed Cost per Month $36.00 45.00 18.00 $99.00 $ 210,000 $ 120,000 Advertising Sales salaries and commissions Shipping expenses Variable Cost per Unit Sold $ 13.00 $ 4.00 The planning budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. b. Direct-laborers worked 56,000…

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