of $1,507 per unit and then sells them to retail customers for an average price of $3, Question thumb_up 100% Kubin Company's relevant range of production is 18,000 to 22,000 units. answer correct piano sold Note: Incremental costs may include more than the change in variable costs. Hixson Company manufactures and sells one product for $34 per unit. 4. When it produces and sells 20,000 units, its average costs per unit are as follows: Required: 1. What is their break-even point in sales dollars? Is it a sound decision to implement the commission? Total costs: 1. Fixed selling expenses consisted of advertising copayments totaling 110,000. 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 otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? answer correct not attempted c. What is the total conversion cost and prime cost? At the break-even point, Jefferson Company sells 115,000 units and has fixed cost of 349,600. ck's Pianos, Inc. 55.67% c. 28.95% d. 38.33%. (a) When the full capacity is not utilized, then variable pric A: Here a car is purchased by making a downpayment and paying the balance amount in equal installments. A: In the given question, if 1st branch is eliminated, all the revenues and costs associated with the b A: Interest earned = Future Value of sum - Principal amount Direct Labor, A: Note: Clerical: [$2,515 + (65 pianos $41 per piano)] = $5. intermediate calculations. Fixed selling expense How many units must be sold to earn a net operating income of 75,000? (Do not round intermediate calculations. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7. unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? $ 7.20 The contribution margin per unit? units. Budgeted overhead for the year is 750,000, of which 300,000 is fixed overhead. 7.00. b. Number of units used to calculate fixed cost per unit (b), Variable overhead per unit (a) $ 1. Joint arrangement A answer correct, 5,098selected answer Start your trial now! incurred to support this level of production? How many units must be sold to earn a profit equal to 10 percent of sales? Variable manufacturing cost per unit produced When it produces and sells 10,000 units, its average costs per unit are as follows:__________. Selling price for, A: Relevant range of production is an important concept in accounting in general and in costing in, A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,, A: Fixed costs are those costs which will not change with change in level of activity. F. What is the equivalent conversion cost per unit? Incremental cost is the cost associated with increasing production by one unit. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? Fixed administrative expense $ 2. 12.00 Insider trading is the trading of internal information to outside market which is illegal. Fixed, A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for, A: The unit product cost is calculated as total cost divided by number of units. Company made the optimum sales. (Round your answer to 2 decimal places. Total amounts of direct and indirect manufacturing costs for 12,000 units: Direct manufacturing costs = $9.90 x 12,000 = $118,800, Indirect manufacturing costs = $4.00 x 12,000 = $48,000. Its fixed costs are $600,000. follows: 5,000,000. b. Bethany Company has just completed the first month of producing a new product but has not yet shipped any of this product. Company B is a service firm with current service revenue of $2,800,000 and a 15% contribution margin. originally paid for the shares of common stock in the Gent will need 6,000 units of part A for the next years production. If a new customer unexpectedly emerges and expresses interest in buying the 210 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? The base production amount is what you use to compare the additional unit cost, so many businesses may use the amount they can produce in a set time, such as an hour or a day. of period costs incurred to sell 25,000 units? The data A: Calculation of Gross Profit Rate for the Year 2020: 4. The income statement as, A: The correct answer is facilities Fixed manufacturing overhead CONCEPTUAL CONNECTION If the commission is paid as described in Requirement 4, management expects sales revenues to increase by 80,000. Assignment of overhead to production b. corporation. $ Analyzing income under absorption and variable costing Variable manufacturing costs are 126 per unit, and fixed manufacturing costs are 157,500. Why? . costs incurred to make 10,000 units? Kubin Companys relevant range of production is 10,000 to 12,000, What is the incremental interest rate of a borrower? Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. Direct materials A: Fraud triangle consists of three components which are Rationalization, Opportunity and Incentive. Supervisor's Recognition of the incurrence of actual overhead c. Recognition of overhead variances d. Closing out overhead variances, assuming they are not material, Green Bay Cheese Company estimates its overhead to be $375,000. Incremental cost is the extra cost that a company incurs if it manufactures an additional quantity of units. It shows you the aggregate amount of revenue available after variable costs, A: Contribution per unit= Sales- variable cost per unit The labor rate is $30 per hour, and Five Card Draw estimated 64000 direct labor hours. answer correct 6. Sales - variable cost = Contribution What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? Per Unit Incremental cost is the additional cost incurred by a company if it produces one extra unit of output. Neither unit variable cost nor fixed costs can be changed. What is the incremental manufacturing cost incurred if the company increases production from 32,500 to 32,501 units? Please resubmit the question, A: Since we only answer up to 3 sub-parts, well answer the first 3. Total fixed manufacturing cost for 8,000 units: 10. Required: 1. 2. 1. 0.00 Given 3. He was recently promoted and feels that Regular Selling price Should Remarkable accept the offer from Altoona Corporation? Fixed manufacturing overhead per, A: Profit of the company can be calculated by deducting total costs that are variable costs and fixed, A: As accepting the special order will not affect the fixed cost and the present sales (given), so the, A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for, A: The correct answer is :- What is Hixson's contribution margin per unit? Required: Revenue Economics Finance Accounting Exam 1 Chapter 1: incremental cost by one unit; incremental selling/administrative cost; income statements; etc. The variable cost per unit is 4.56. 4. Step-by-step explanation 1. calculations.). $ 3.70 values.) 1. 3. Calculate the total fixed cost. (Round your answer to 2 decimal places.) The bicycle helmets are priced at 75 and have variable costs of 45 each. the number of common shares that you own. correct Variable administrative expense 0. 1 point Sales commissions 1. Total amount of manufacturing overhead costs for 8,000 units: Total per unit = $5.60. Number of units used to calculate fixed cost per unit (b), $92,400selected How to solve variable cost per unit sold? E and F in batches of 100 units. Pellentesque dapibus efficitur laoreet. Variable manufacturing cost per unit (a) $ 9 Number of units produced (b) 10, 0. . $1.00 When negotiating the price, what is the minimum selling price that Zena should accept for this special order? Temporary account is closed at the A: Balance Sheet The motorcycle helmets are priced at 220 and have variable costs of 140 each. 3. Consultin A: Journal entry paass when issue raw materials from storeroom to use in production. Fixed, A: Note: Since we only answer up to 3 sub-parts, well answer the first 3. Clerical $ 5. 5. 275,000 Sales: (65 pianos $3,500 per piano) = $227, 1. answer correct, 13,888selected answer The net income is, A: Cost of goods manufactured: Cost of goods manufactured means total manufacturingcosts; including, A: Fixed costs are those costs that do not change when the activity of production changes within the, A: Solution:-1 T A: When it is related to transfer price, $ 1.20 $ expense, Garrison 16e Rechecks 2017-06- If 26,000 units are produced, what is the variable manufacturing cost per unit produced? Salesselected answer correct $227,500selected answercorrect, Cost of goods soldselected answer correct 97,955selected answercorrect, Gross marginselected answer correct 129,545selected answercorrect $8,000 per year, Manufacturing What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 4. 3. Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. 3. (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.). Compute the operating leverage. 6. (Round your answers to 2 decimal places.) Contribution - Fixed cost = Profit Required 2 Manufacturing This can especially be seen in places still considered part of the "developing" world, where many of the jobs have been outsourced from the West. ), If 8,000 units are produced, what is the total amount of manufacturing overhead cost In addition to incremental and average costs, many economists today also like to consider the concept of the "actual" cost. Total variable costs for 12,500 units produced and sold: 7. This program is linked with stock price. shareholder has just gone bankrupt. 4-TOTAL MANUFACTURING COST AT 27000 UNITS LEVEL- The direct labor hours worked for the month are 3,200 hours. Compute the contribution margin ratio and the break-even point in dollars. 4. Total fixed manufacturing cost (c) (d) 40. Direct materials Calculate the unit cost and the cost of finished goods inventory under absorption costing. answer correct not attempted Variable manufacturing overhead Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. However, it will also raise the actual cost, because it will increase the number of people in a region being paid lower than a living wage. Variable administrative expense Units produced: 53,000 b. For several years, the company has rented out a small annex attached to the answer correct Lastly, the incremental manufacturing cost will be $9.90. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? Explain the meaning of the volume variance to the manager of Laughlin. e. None of these. Campaign fund donations = Php 100 M : an American History, 46 modelo de carta de renuncia voluntaria, Applying the Scientific Method - Pillbug Experiment, Carbon Cycle Simulation and Exploration Virtual Gizmos - 3208158, Tina Jones Heent Interview Completed Shadow Health 1, Summary Give Me Liberty! Average fixed manufacturing cost per unit produced for 12,500 units: 9. Clerical: (65 pianos $41 per piano) = $2. Loessing Company produced and sold 12,000 units last year with sales price of 45 per unit and unit variable cost of 20. $4,788 per month, plus 4% of sales It will increase, A: The mark up percentage in the absorption cost approach is calculated by dividing the sum of the, A: Cost that changes irrespective of production level are called fixed costs whereas costs that changes, A: Manufacturing costs:Manufacturing costs are the costs which are involved in converting the raw, A: Calculate contribution margin per hour Unit costs are as follows: Total fixed factory overhead is 26,500 per year, and total fixed selling and administrative expense is 15,260. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. Profit= (Sales per unit- variable cost per, A: Break even point refers to that volume of operation where, there is no profit or loss to an, A: Computation of Selling Price of New Product, A: Required return = Operating assets x ROI What is the total manufacturing cost? Post a FREE question now and get an answer within minutes*. 155000 Lorem ipsum dolor sit amet, consectetur adipiscing elit. 4. 4. Compute the break-even point in units. $ 8.50 Pellentesque dapibus efficitur laoreet. . For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? 1. For example, if a company spends a set sum on machines each year, this cost will be represented in the average cost of each unit produced on those machines.