Dance Creations manufactures authentic Hawallan hula skirts that are purchased for traditional Hawallan celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $ 9.75 3.55 1.20 0.60 Fixed Costs per Month Fixed manufacturing overhead Fixed selling and administrative expenses Dance Creations charges $31 for each skirt that it sells. During the first month of operation, it made 1,540 skirts and sold 1,420. $ 16,555 5,100 Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin Income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4 Complete a full absorption corting

Dance Creations manufactures authentic Hawallan hula skirts that are purchased for traditional Hawallan celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: variable Cost per Hula Skirt Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expenses $ 9.75 3.55 1.20 0.60 Fixed Costs per Month Fixed manufacturing overhead Fixed selling and administrative expenses Dance Creations charges $31 for each skirt that it sells. During the first month of operation, it made 1,540 skirts and sold 1,420. $ 16,555 5,100 Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin Income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4 Complete a full absorption corting

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Description: Dance Creations manufactures authentic Hawallan hula skirts that are purchased for traditional Hawallan celebrations, costumeparties, and other functions. During its first year of business, the company incurred the following costs:variable Cost per

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 16E: Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels...

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SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Lean accounting Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customers instrument assembly. The data that follow concern only the eCar lean cell. For the year, Dashboard Inc. budgeted the following costs for the eCar production cell: Dashboard Inc. plans 2,000 hours of production for the eCar cell for the year. The materials cost is 240 per instrument assembly. Each assembly requires 24 minutes of cell assembly time. There was no April 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory. The following summary events took place in the eCar cell during April: A. Electronic parts and wiring were purchased to produce 450 instrument assemblies in April. B. Conversion costs were applied for the production of 400 units in April. C. 380 units were started, completed, and transferred to finished goods in April. D. 350 units were shipped to customers at a price of 800 per unit. Instructions 1. Determine the budgeted cell conversion cost per hour. 2. Determine the budgeted cell conversion cost per unit. 3. Journalize the summary transactions (a) through (d). 4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory. 5. How does the accounting in a lean environment differ from traditional accounting?
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Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
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Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials $ 9.60 Direct labor 3.40 Variable manufacturing overhead 1.05 Variable selling and administrative expenses 0.40 Fixed Costs per Month Fixed manufacturing overhead $ 16,125 Fixed selling and administrative expenses 4,950 Dance Creations charges $30 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,375. Required: 1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. 2. Complete a contribution margin income statement for the last month. 3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for the last month. 4. Complete a full…
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Happy Hula manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Variable Cost per Hula Skirt Direct materials $ 7.35 Direct labor 2.50 Variable manufacturing overhead 1.05 Variable selling & administrative expenses 0.40 Fixed cost per Month Fixed manufacturing overhead $15,900 Fixed selling and administrative expenses 4,950 Happy Hula charges $30 for each skirt that it sells. During the first month of…
Zeitgeist Company manufactures silicon sleeves for MP3 players. In August of last year, Zeitgeist began producing the colorful sleeves. During the month of August, 16,000 were produced, and 14,750 were sold at $6.95 each. The following costs were incurred: Direct materials $26,880 Direct labor 6,720 Variable overhead 5,920 Fixed overhead 28,160 A selling commission of 8% of sales price was paid. Administrative expenses, all fixed, amounted to $37,890. Required: 1. Calculate the unit cost and the cost of ending inventory under absorption costing. (Round unit cost to the nearest cent and cost of ending inventory to the nearest dollar.) 2. Calculate the unit cost and the cost of ending inventory under variable costing. (Round unit cost to the nearest cent and cost of ending inventory to the nearest dollar.) 3. What is the contribution margin per unit? (Round to the nearest cent.) 4. CONCEPTUAL CONNECTION: Zeitgeist believes that multicolored sleeves will really take off after one year of…
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