McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet. Beginning inventory. Units produced 80,000 Units sold 70,000 Selling price per unit Selling and administrative expenses: $30 Variable per unit .. Fixed (total) ... $1 $160,000 Manufacturing costs Direct materials cost per unit $10 Direct labor cost per unit ... Variable manufacturing overhead cost per unit. Fixed manufacturing overhead cost (total) . $4 $2 $640,000

McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant's operation in the form of a worksheet. Beginning inventory. Units produced 80,000 Units sold 70,000 Selling price per unit Selling and administrative expenses: $30 Variable per unit .. Fixed (total) ... $1 $160,000 Manufacturing costs Direct materials cost per unit $10 Direct labor cost per unit ... Variable manufacturing overhead cost per unit. Fixed manufacturing overhead cost (total) . $4 $2 $640,000

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Description: McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The companyhas just opened a new plant to manufacture the antenna, and the following cost andrevenue data have been provided for the first month of the plant's operation in the

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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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.
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $390 each. Product costs include: Direct materials $82.00 Direct labor $47.00 Variable overhead $12.00 Total fixed factory overhead $647,250 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $97,000. Required: Question Content Area 1. Calculate the sales commission per unit sold. If required, round your answers to the nearest dollar. Use rounded answers in subsequent computations.$________ per unit Calculate the contribution margin per unit.$________ per unit 2. How many units must Jay-Zee Company sell to break even? Round your answer to the nearest whole number. ________units Prepare an income statement for the calculated number of units. If an amount is zero, enter "0". Do NOT round Break-even units and, if required, round your answer to the nearest dollar. blank Sales $______ Less:…
Aholt Corporation makes 40,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Alt Tex How would context to se (1-2 sentenc Direct materials Direct labor $11.30 22.70 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 24.70 Unit product cost $59.90 An outside supplier has offered to sell the company all of these parts it needs for $46.20 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $264,000 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $21.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be…
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant’s operation.Beginning inventory 0 Units produced 50,000 Units sold 45,000 Selling price per unit $76 Selling and administrative expenses:Variable per unit $3 Fixed (total) $567,000 Manufacturing costsDirect materials cost per unit $15 Direct labor cost per unit $7 Variable manufacturing overhead cost per unit $3 Fixed manufacturing overhead cost (total) $900,000. on the basis of aborption costing.Determine the unit product cost. Prepare an income statement for the month. on the basis of variable costing. Determine the unit product cost. Prepare an contribution formate income statement for the month.
Copland Components manufactures an electronic device for vehicle manufacturing. The current standard cost sheet for a device follows: Direct materials, ? ounces at $2.80 per ounce Direct labor, 0.4 hours at ? per hour Overhead, 0.4 hours at ? per hour Total costs $ per device ? per device per device $ 30 per device Assume that the following data appeared in Copland's records at the end of the past month: Actual production Actual sales Materials costs (505,000 ounces) Materials price variance Materials efficiency variance Direct labor price variance Direct labor (37,500 hours) Overapplied overhead (total) There are no materials Inventories. Required: 96,000 units 90,000 units $ ? 63,000 U 70,000 U 18,750 F 918,750 25,200 a. Prepare a variance analysis for direct materials and direct labor. b. Assume that all production overhead is fixed and that the $25,200 overapplied is the only overhead varlance that can be computed. What are the actual and applied overhead amounts? c. Complete the…
Coverall Inc. produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and revenue data have been provided for the first month of the plant’s operation in the form of a worksheet: Beginning inventory $ 0 Units produced 38,000 Units sold 24,000 Selling price per unit $ 95 Selling and administrative expenses: Variable per unit $ 11 Fixed (total) $ 672,000 Manufacturing costs: Direct materials cost per unit $ 16 Direct labour cost per unit $ 12 Variable manufacturing overhead cost per unit $ 6 Fixed manufacturing overhead cost (total) $ 1,064,000 Since the new case is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the…
High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 45,000 Units sold 40,000 Selling price per unit $ 79 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 555,000 Manufacturing costs: Direct materials cost per unit $ 16 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 4 Fixed manufacturing overhead cost (per month) $ 720,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the…
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 42,000 Units sold 37,000 Selling price per unit $76 Selling and administrative expenses: Variable per unit $3 Fixed (per month) $ 557,000 Manufacturing costs: Direct materials cost per unit $16 Direct labor cost per unit $9 Variable manufacturing overhead cost per unit $1 Fixed manufacturing overhead cost (per month) $ 672,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. Unit product…
Copland Components manufactures an electronic device for vehicle manufacturing. The current standard cost sheet for a device follows: Direct materials, ? ounces at $2.80 per ounce Direct labor, 0.4 hours at ? per hour Overhead, 0.4 hours at ? per hour Total costs $ ? per device ? per device ? per device $ 30 per device Assume that the following data appeared in Copland's records at the end of the past month: Actual production Actual sales 96,000 units 90,000 units Materials costs (505,000 ounces) $ ? Materials price variance 63,000 U Materials efficiency variance 70,000 U Direct labor price variance 18,750 F Direct labor (37,500 hours) Overapplied overhead (total) There are no materials Inventories. 918,750 25,200 Required: a. Prepare a variance analysis for direct materials and direct labor. b. Assume that all production overhead is fixed and that the $25,200 overapplied is the only overhead variance that can be computed. What are the actual and applied overhead amounts? c. Complete…
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a price of $360 each. Product costs include: Direct materials $76.00 Direct labor $43.00 Variable overhead $11.00 Total fixed factory overhead $727,000 Variable selling expense is a commission of 5 percent of price; fixed selling and administrative expenses total $110,400.See screenshots for needed answers.
Peter Ltd manufactures and sells batteries. The cost data for the product are given below. The accountant told the President that he will prepare two different sets of income statements for thePresident’s review. The data are given as follows: Variable cost: Direct materials $6Direct labor $12Variable overhead $4Variable selling and administrative $3 Fixed cost per month: Fixed manufacturing overhead $240,000Fixed selling and administrative $180,000 The batteries sell for $40 per unit. Production and sales data for January are shown below. Units produced 30,000Units sold 26,000 Required:a. Prepare the absorption costing income statement.b. Prepare the variable costing income statement.c. Explain to the President the differences between the two income statements (if any) and the net income figures he should rely on.