E8.20 (LO 1) Information for Bob's Company is provided in E8.19. Instructions a. Assuming the company uses absorption costing, calculate Bob's manufacturing cost per unit for 2022.
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- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
- Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?Great Bay Company manufactures cordless telephones. During 2022, total costs associated with manufacturing 18,500 of the AB- 2000 model (introduced this year) were as follows: Raw materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $195,175 115,625 85,100 114,700 Required: a. Calculate the cost per phone under both direct (or variable) costing and absorption costing. b. If 2,800 of these phones were in finished goods inventory at the end of 2022, by how much and in what direction (higher or lower) would 2022 operating income be different under direct (or variable) costing than under absorption costing? c. Express the phone cost in a cost formula. What does this formula suggest the total cost of making an additional 1,600 phones would be? Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the cost per phone under both direct (or variable) costing and absorption costing. (Round your direct and…
- Top Wood is a small manufacturing company currently making a single type of chair. The managing director presents to you the following details of estimated revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: Raw material Direct labour Manufacturing overheads Selling cost RM 15 16 11 8. The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting to $110,000 of which 20% is variable manufacturing overhead cost. The company's total selling costs for the year amounting to $19,500 inclusive of fixed and variable costs. (2) (3) All units produced can be sold as soon as they are made, and no stocks are kept. (4) The directors have been considering their plan for the year ending 31 December 2021. The company intends to increase the sales by 30% if the fixed selling costs increase by $14,964 and…Top Wood is a small manufacturing company currently making a single type of chair. The managing director presents to you the following details of estimated revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit (RM) 100 Selling price Total variable cost per unit: Raw material Direct labour Manufacturing overheads Selling cost RM 15 16 11 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting to $110,000 of which 20% is variable manufacturing overhead cost. The company's total selling costs for the year amounting to $19,500 inclusive of fixed and variable costs. (2) (3) All units produced can be sold as soon as they are made, and no stocks are kept. (4) The directors have been considering their plan for the year ending 31 December 2021. The company intends to increase the sales by 30% if the fixed selling costs increase by $14,964 and the…Adele Watches has the following cost information for 2019:Direct materials P6.00 per unitDirect labor P4.00 per unitVariable manufacturing overhead P2.00 per unitVariable selling and administrative cost P1.00 per unitFixed manufacturing overhead P80,000Fixed selling and administrative cost P25,000Selling Price P23.00Units produce 25,000 unitsUnits sold 23,000 units Provide the following: 1. Income statement using variable costing. 2. income statement using Absortption costing. 3. For internal decision making, which income statement would be more useful? Why?
- Top Wood is a small manufacturing company currently making a single type of chair. The managing director presents to you the following details of estimated revenue and cost per unit for the year ended 31 December 2021: Quantity (Units) 2,000 Number of Chairs made and sold Price per unit RM) 100 Selling price Total variable cost per unit: RM Raw material 15 Direct labour | Manufacturing overheads Selling cost 16 11 8 The following information is taken into consideration: (1) Total manufacturing overheads cost estimated for the year amounting to $110,000 of which 20% is variable manufacturing overhead cost. The company's total selling costs for the year amounting to $19,500 inclusive of fixed and variable costs. (2) (3) All units produced can be sold as soon as they are made, and no stocks are kept. (4) The directors have been considering their plan for the year ending 31 December 2021. The company intends to increase the sales by 30% if the fixed selling costs increase by $14,964 and…Spartan Corp. applies manufacturing overhead based on direct labor hours. For 2023, Spartan Corp. estimated total manufacturing overhead cost to be $250,000 and estimated 50,000 total direct labor hours would be used. In 2023, actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used. Calculate the overhead rate using normal costing. [Select] the nearest cent. YRound your answer to Using normal costing, how much overhead will be applied to cost object that uses 18,500 labor hours. [Select] Round your answer to the nearest dollar.Pia Manufacturing Company has developed the following overhead cost formulas: (refer to image) Based on these cost formulas. The total overhead cost expected if 200 machine hours are worked is: Cost Formula Depreciation P500 Set up P400 plus PO.20 per machine-hour P50 plus PO.25 per machine-hour PO.40 per machine-hour Lubrication Utilities a. P620 b. P900 c. P170 d. P1,120