| |
$94,700
3.
|
In September direct labor was 45% of conversion cost. If the manufacturing overhead for the month was $80,300 and the direct materials cost was $22,400, the direct labor cost was:
|
| |
$35,033
|
| |
$65,700
|
| |
$120,700
|
| |
$51,700
|
4.
|
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,780 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?
|
5.
|
Ladanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $154.00 per unit.
|
|
Sales volume (units)
|
14,300
|
15,880
|
|
Cost of sales
|
$1,144,000
|
$1,270,400
|
|
Selling and administrative costs
|
$655,000
|
$683,440
|
The best estimate of the total contribution margin when 15,540 units are sold is:
| |
$248,970
|
| |
$984,270
|
| |
$336,170
|
| |
$870,240
|
6.
|
Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.
|
|
Production volume
|
4,400
|
units
|
5,400
|
units
|
|
Direct materials
|
$77.90
|
per unit
|
$77.90
|
per unit
|
|
Direct labor
|
$50.20
|
per unit
|
$50.20
|
per unit
|
|
Manufacturing overhead
|
$74.30
|
per unit
|
$68.30
|
per unit
|
|
The best estimate of the total cost to manufacture 5,100 units is closest to: (Do not round intermediate calculations.)
|
| |
$1,016,265
|
| |
$1,009,560
|
| |
$1,027,440
|
| |
$978,270
|
7.
The following data pertains to activity and the cost of cleaning and maintenance for two recent months:
| |
Month 1
|
Month 2
|
|
Production volume
|
2,400
|
units
|
3,100
|
units
|
|
Cleaning and maintenance costs
|
$1,000
|
|
$1,210
|
|
|
The best estimate of the total month 1 variable cost for cleaning and maintenance is: (Do not round intermediate calculations.)
|
8.
|
At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $708,900 and its total fixed production engineering cost is $168,210. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)
|
| |
$101.95
|
| |
$101.41
|
| |
$102.48
|
| |
$102.30
|
9.
Supply costs at Lattea Corporation's chain of gyms are listed below:
| |
Client-Visits
|
Supply Cost
|
|
March
|
11,660
|
$28,574
|
|
April
|
11,456
|
$28,408
|
|
May
|
11,988
|
$28,832
|
|
June
|
13,300
|
$28,918
|
|
July
|
11,720
|
$28,635
|
|
August
|
11,206
|
$28,234
|
|
September
|
12,000
|
$28,833
|
|
October
|
11,691
|
$28,591
|
|
November
|
11,839
|
$28,716
|
|
Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.)
|
| |
$2.02 per client-visit; $28,636 per month
|
| |
$.91 per client-visit; $17,471 per month
|
| |
$0.37 per client-visit; $24,024 per month
|
| |
$0.33 per client-visit; $24,529 per month
|
10.
Buckeye Company has provided the following data for maintenance cost:
| |
Prior Year
|
Current Year
|
|
Machine hours
|
14,100
|
17,000
|
|
Maintenance cost
|
$28,200
|
$31,970
|
|
The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.)
|
| |
$9,870 per year plus $1.30 per machine hour
|
| |
$28,200 per year plus $1.30 per machine hour
|
| |
$9,870 per year plus $.769 per machine hour
|
| |
$22,100 per year plus $.769 per machine hour
|
11.
|
Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
|
|
Production volume
|
13,700
|
units
|
15,000
|
units
|
|
Direct materials
|
$911,050
|
|
$997,500
|
|
|
Direct labor
|
$239,750
|
|
$262,500
|
|
|
Manufacturing overhead
|
$1,008,400
|
|
$1,025,820
|
|
|
The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)
|
| |
$832,320
|
| |
$827,820
|
| |
$821,820
|
| |
$824,820
|
12.
|
Nikkel Corporation, a merchandising company, reported the following results for July:
|
|
Sales
|
$447,000
|
|
Cost of goods sold (all variable)
|
$170,500
|
|
Total variable selling expense
|
$ 20,100
|
|
Total fixed selling expense
|
$ 21,600
|
|
Total variable administrative expense
|
$ 8,500
|
|
Total fixed administrative expense
|
$ 31,300
|
|
The gross margin for July is:
|
| |
$195,000
|
| |
$247,900
|
| |
$394,100
|
| |
$276,500
|
13.
|
Nikkel Corporation, a merchandising company, reported the following results for July:
|
|
Sales
|
$433,000
|
|
Cost of goods sold (all variable)
|
$174,800
|
|
Total variable selling expense
|
$ 25,600
|
|
Total fixed selling expense
|
$ 15,100
|
|
Total variable administrative expense
|
$ 14,800
|
|
Total fixed administrative expense
|
$ 31,400
|
|
The contribution margin for July is:
|
| |
$171,300
|
| |
$386,500
|
| |
$217,800
|
| |
$258,200
|
14.
|
Salvadore Inc., a local retailer, has provided the following data for the month of September:
|
|
Merchandise inventory, beginning balance
|
$ 45,000
|
|
Merchandise inventory, ending balance
|
$ 45,600
|
|
Sales
|
$263,500
|
|
Purchases of merchandise inventory
|
$135,800
|
|
Selling expense
|
$ 19,700
|
|
Administrative expense
|
$ 60,900
|
|
The net operating income for September was:
|
| |
$127,700
|
| |
$128,700
|
| |
$49,900
|
| |
$47,700
|
15.
Lettman Corporation has provided the following partial listing of costs incurred during November:
| |
|
|
|
Marketing salaries
|
$
|
47,600
|
|
Property taxes, factory
|
$
|
14,600
|
|
Administrative travel
|
$
|
104,500
|
|
Sales commissions
|
$
|
55,300
|
|
Indirect labor
|
$
|
42,000
|
|
Direct materials
|
$
|
167,200
|
|
Advertising
|
$
|
145,300
|
|
Depreciation of production equipment
|
$
|
42,000
|
|
Direct labor
|
$
|
95,700
|
| |
Required:
|
a.
|
What is the total amount of product cost listed above? (Omit the "$" sign in your response.)
|
|
b.
|
What is the total amount of period cost listed above? (Omit the "$" sign in your response.)
|
16.
|
Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $195,200. At the end of the year, actual direct labor-hours for the year were 16,500 hours, manufacturing overhead for the year was underapplied by $12,000, and the actual manufacturing overhead was $190,200. The predetermined overhead rate for the year must have been:
|
| |
$10.80 per direct labor-hour
|
| |
$11.74 per direct labor-hour
|
| |
$11.46 per direct labor-hour
|
| |
$9.93 per direct labor-hour
|
|
