Muscat Company's total sales are $130,000. The company's direct material cost is $57,000, which represents 40% of its total prime cost. Its total manufacturing overhead costs is $45,000. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 3% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. What is the total manufacturing cost? Select one: a. $187,500 b. $73,000 c. $197,500 d. None of the answers given e. $120,000 x f. $124,800
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- Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of its product X: Direct materials. E12 000 Direct labour. £16 000 E1000 Depreciation of machinery.. Sales. 856 000 What is the contribution per unt of product? a. £7.00 b.E0.80 c. £2.50 d.£3.50Menlo Company manufactures and sells a single product. The following information has been provided to you: Profit and loss account for the year ended 31 Dec 2017: £ £ £ Sales 3,000,000 Production costs: Direct materials 300,000 Direct labour 1,387,500 Variable overhead 150,000 Fixed overhead 525,000 Total production costs: 2,362,500 Fixed administration overhead 240,000 Selling and distribution costs: Sales commission (2% of sales) 60,000 Variable distribution costs 127,500 Fixed advertising costs 90,000 277,500 2,880,000 Profit 120,000…15)Pilipe, Inc. at its current production capacity of 200,000 machine hours. At this point total overhead costs amounted to 560,000. Of this amount 360,000 amounts to depreciation expense. Inspection costs 60,000 (all variable). The remaining costs are communication costs (mixed costs). At 85,000 production capacity, communication expenses were P64,000. 2 machine hours are needed to produce 1 unit. (Round your answers to two decimal places). How much is the variable cost per machine hour? 16) Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit P200…
- PQ ltd. Is manufacturing product X and Y only. It provides the following information regarding Z. X Y Sales X – 70,000 units @ $12 $840,000 Sales Y – 90,000 units @ $8 $720,000 Total Material Cost ($259,000) $ (180,000) Total Labor Cost ($233,000 $ (372,000) Total Overheads ($190,000) $ (207,000) Profit/(Loss) $158,000 $ (39,000) Additional Information: Labor includes fixed cost $65,000 $48,000 Overheads include fixed cost $36,000 $45,000 The directors are worried about the loss of Product Y. To overcome this problem, they have asked the production manager to do something about it. The production manager gave them the following 2 options. Option 1: Selling Price of Y will be increased by $1.2 per unit. But this will cause the sales to fall by 5%. Option 2: The company should stop producing product Y. The company has to bear $20,000 as redundancy cost. The shutdown of product Y will result in saving…PQ ltd. is manufacturing product X and Y only. It provides the following information regarding Z. X Y Sales X – 70,000 units @ $12 $ 840,000 Sales Y – 90,000 units @ $8 $ 720,000 Total Material Cost ($259,000) $ (180,000) Total Labor Cost ($233,000 $ (372,000) Total Overheads ($190,000) $ (207,000) Profit/(Loss) $158,000 $ (39,000) Additional Information: Labour includes fixed cost $65,000 $48,000 Overheads include fixed cost $36,000 $45,000 The directors are worried about the loss of Product Y. To overcome this problem, they have asked the production manager to do something about it. The production manager gave them the following 2 options. Option 1: Selling Price of Y will be increased by $1.2 per unit. But this will cause the sales to fall by 5%. Option 2: The company should stop producing product Y. The company has to bear $20,000 as redundancy cost. The shutdown of product Y will result in saving…Menlo Company manufactures and sells a single product. The following information has been provided to you: Profit and loss account for the year ended 31 Dec 2017: £ £ £ Sales 3,000,000 Production costs: Direct materials 300,000 Direct labour 1,387,500 Variable overhead 150,000 Fixed overhead 525,000 Total production costs: 2,362,500 Fixed administration overhead 240,000 Selling and distribution costs: Sales commission (2% of sales) 60,000 Variable distribution costs 127,500 Fixed advertising costs 90,000 277,500 2,880,000 Profit 120,000…
- ! Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would…! Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 9.00 $ 6.00 $ 3.50 $ 7.00 $ 5.50 $ 4.50 $ 3.00 $ 2.50! Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: . Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be…
- Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Total Costs $ 2,515 3,235 Y= 1234567899 10 Units Produced 0 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 3,955 4,675 5,395 6,115 6,835 7,555 8,275 8,995 Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. XRequired information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Required: 1. For financial accounting purposes, what is the total product cost incurred to make 20,000 units? 2. For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? 3. For financial accounting purposes, what is the total product cost incurred to make 22,000 units? 4. For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? 1. Total product cost 2. Total period cost 3. Total product cost 4. Total…Please answer all parts in its entirety and bold the answers only. Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 15 $ 660,000 Direct labor 10 440,000 Variable manufacturing overhead 3 132,000 Fixed manufacturing overhead 7 308,000 Variable selling expense 2 88,000 Fixed selling expense 6 264,000 Total cost $ 43 $ 1,892,000 The Rets normally sell for $48 each. Fixed manufacturing overhead is $308,000 per year within the range of 37,000 through 44,000 Rets per year. Required: 1. Assume that due to a recession, Polaski Company expects to sell only 37,000 Rets through regular channels next year. A large retail chain has offered to purchase 7,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions…