Swiatek Corporation produces a single product and has the following cost structure: The variable costing unit product cost is:
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Swiatek Corporation produces a single product and has the following cost structure:
The variable costing unit product cost is:
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- The following costs have been estimated based on sales of 30,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 300,000 100 % Direct labor 250,000 100 % Manufacturing overhead 250,000 50 % Selling and administrative 150,000 25 % What selling price (rounded to two decimal places) will yield a contribution margin of 40%? $43.75 $59.38 $39.58 $33.25Farrow Co. expects to sell 150,000 units of its product in the next period with the following results. Sales (150,000 units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,250,000 Costs and expenses Direct materials . 300,000 Direct labor 600,000 Overhead . 150,000 Selling expenses . 225,000 Administrative expenses . 385,500 Total costs and expenses 1,660,500 Net income . $ 589,500 The company has an opportunity to sell 15,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 15% and (2) administrative expenses would increase by $64,500. Prepare an analysis to determine whether the company should accept or reject the offer to sell additional units at the…I Your Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct materials Direct labor $53.60 $5.30 Variable manufacturing overhead.......$1.40 Fixed manufacturing overhead............$13.20 Variable selling and administrative expense..... S$1.60 Fixed selling and administrative expense...........$59.10 The normal selling price of the product is $91.60 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.00 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is ample idle capacity to produce the units required by the overseas…
- Last year, Regio Company incurred the following costs: Direct materials 50,000 Direct Labor 20,000 Manufacturing overhead 130,000 Selling expense 40,000 Administrative expense 36,000 Regio produced and sold 10,000 units at a price of 31 each. 1. What is the prime cost per unit? 2. What is the conversion cost per unit? 3. What is the cost of goods sold per unit 4. What is the gross profit per unit? 5. What is the operating income?Maxwell Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per unit: Manufacturing: Direct materials.... Direct labor Variable manufacturing overhead Variable selling and administrative ..... Fixed costs per year: Fixed manufacturing overhead. Fixed selling and administrative expenses *********** IME $18 $7 $2 $2 $200,000 $110,000 During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company's product is $50 per unit. Required: Prepare Income Statement under both Absorption Costing and Variable Costing MethodDelta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 60,000 units per year is: 05 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.10Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.80Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . $1.00Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . $4.20Variable selling and administrative expense . . . . . . . . . . . $1.50Fixed selling and administrative expense . . . . . . . . . . . . . $2.40 The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. An order has been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. This order would not affect regular sales. Required: If the order is accepted, by how much will annual profits be increased or decreased? (The order…
- Delta Company produces a single product. The cost of producing and selling a single unit ofthis product at the company’s normal activity level of 60,000 units per year is: 05 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.10Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.80Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . $1.00Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . $4.20Variable selling and administrative expense . . . . . . . . . . . $1.50Fixed selling and administrative expense . . . . . . . . . . . . . $2.40 The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year.An orderhas been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. Thisorder would not affect regular sales.Required: Assume the company has 1,000 units of this product left over from last year that areinferior to the…Delta Company produces a single product. The cost of producing and selling a single unit ofthis product at the company’s normal activity level of 60,000 units per year is: 05 Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.10Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.80Variable manufacturing overhead . . . . . . . . . . . . . . . . . . . $1.00Fixed manufacturing overhead . . . . . . . . . . . . . . . . . . . . . $4.20Variable selling and administrative expense . . . . . . . . . . . $1.50Fixed selling and administrative expense . . . . . . . . . . . . . $2.40 The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year.An orderhas been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. Thisorder would not affect regular sales.Required: If the order is accepted, by how much will annual profits be increased ordecreased? (The order will not…Assume the following information for a company that produced and sold 10,000 units during its first year of operations: Per Unit Per Year $ 200 $ 75 $ 50 $ 10 Selling price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 300,000 Using absorption costing, what is the company's gross margin per unit?
- Delta Company produces a single product. The cost of producing and selling a single unit of this productat the company’s normal activity level of 60,000 units per year is:Direct materials ................................................... $5.10Direct labor .......................................................... $3.80Variable manufacturing overhead ....................... $1.00Fixed manufacturing overhead ........................... $4.20Variable selling and administrative expense ....... $1.50Fixed selling and administrative expense ........... $2.40The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. An order hasbeen received from a mail-order house for 15,000 units at a special price of $14.00 per unit. This orderwould not affect regular sales.Required:1. If the order is accepted, by how much will annual profits be increased or decreased? (The order willnot change the company’s total fixed costs.)2. Assume the company has 1,000 units of this…A company has provided the following data:Sales.................3,000 unitsSales price..........$70 per unitVariable cost.......$50 per unitFixed cost...........$25,000If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net income will:10. The following cost relate to XYZ Corp for the year:Sales commission expenses P 185,000Direct materials 215,000Conversion cost 435,000Factory overhead 190,000 (40% of which is fixed)What is the TOTAL VARIABLE MANUFACTURING COSTS?