Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Absorption costing Total product cost per unit Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $8 per unit $,552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing)

Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Absorption costing Total product cost per unit Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $8 per unit $,552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...

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Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Sold
A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period. Product A Product B Number of units produced 20,000 units 4,000 units Direct labor @ $20 per direct labor hour (DLH) 0.50 DLH per unit 2.00 DLH per unit Direct materials cost $ 4 per unit $ 35 per unit Overhead costs: Total Cost ActivityDriver Product A Product B Machine setup $ 2,000.00 setups 6 setups 14 setups Quality inspections 31,000.00 inspections 80 inspections 120 inspections Total $ 33,000.00 Using activity-based costing to assign overhead costs, the activity rate for machine setups is:
17 Belsky Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Estimated Overhead Cost $ 999,600 Processing orders Inspection $ 101,300 $ 138,700 Expected Activity 68,000 machine-hours 2,000 orders 1,900 inspection-hours The company makes 450 units of product Q19S a year, requiring a total of 710 machine-hours, 42 orders, and 12 inspection-hours per year. The product direct materials cost is $36.31 per unit and its direct labor cost is $30.05 per unit. According to the activity-based costing system, the unit product cost of product Q19S is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $96.23 per unit О $66.36 per unit $87.70 per unit
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year ofoperations: Selling priceDirect materials Direct laborVariable manufacturing overhead $ 10Sales commission Fixed manufacturing overhead Per Unit Per Year$ 200$77$ 50$ 8$300,000 Using variable costing, what is the company's net operating income? $195,000 $275,000 $185,000 $175,000
JYD Corporation produces three products. The production and cost data show the following: Product Peter Senen Ethel Units Produced 10,000 30,000 60,000 Direct Labor Hours 20,000 10,000 20,000 Number of setups 500 750 1,250 Number of shipments 1,000 1,125 1,375 Engineering change orders 75 50 25 Overhead costs include setups $450,000; shipping costs $700,000 and engineering costs $900,000. a. What would be the per unit overhead cost for product Senen if direct labor hours were the allocation base? b. What would be the per unit overhead cost of Product Peter if ABC were used? c. What would be the per unit overhead cost of Product Senen if ABC were used? d. What would be the unit overhead cost of Product Ethel if ABC were used?
7. At the beginning of the year, a company estimates total direct materials costs of $1,940,000 and total overhead costs of $2,793,600. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? a. 100% b. 144% c. 69% d. 44% e. 31%
Betty Company Ltd manufactures two products, XO and X1. Estimates for the company’s products for next year are provided below: XO X1 Estimated production volume 4 000 3 000 Direct material cost $70 / unit $95 / unit Direct labour per unit 2 hours @ $25 / hour 3 hours @ $25 / hour Betty’s estimated overhead of $1 600 000 can be identified with three major activities: order processing ($260 000), machine processing ($1 040 000) and product inspection ($300 000). These activities are driven by number of orders processed, machine hours, and inspection hours respectively. Estimated activity levels for the next year are as follows: XO X1 Total Orders processed 400 600 1000 Machine hours 38 000 42 000 80 000 Inspection hours 8 000 16 000 24 000 Required: Assuming that Betty Company Ltd uses activity-based costing to apply overhead to production, calculate the unit manufacturing costs of the XO and X1…
Assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: Selling price Direct materials Direct labor Per Unit Per Year $ 200 $ 76 $ 50 Variable manufacturing overhead Sales commission Fixed manufacturing overhead Using absorption costing, what is the unit product cost for units produced during the second year of operations? $9 $8 $ 300,000
Kimber Company has the following unit costs for the current year: Raw materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost $20.00 25.00 10.00 15.00 $70.00 Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: Oa. $560,000. Ob. $615,000. Oc. $630,000. Od. $575,000.