Category: Managerial Accounting

“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 84. Under absorption costing, the inventoriable cost of one unit of product would be a. $49.65. b. $43.20. c. $36.00. d. $31.20”,”3Under absorption costing, the inventoriable cost of one unit of product:Total absorption costs = Fixed Overhead + Variable Overhead + Direct Labor +Direct Materials Total absorption costs = 240,000 + 200,000 + 110,000 + 70,000 = $ 720,000Units produced = 20,000 unitsPer unit absorption (inventories) costs = 720,000 = $36 / unit 20

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“During 19×2, Krepps Company manufactured[…]

Read more

“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.100. The variable overhead spending variance for March is: a. $200 U. b. $600 U. c. $600 F. d. $200 F.”

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

Read more

“During 19×2, Krepps Company manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Fixed Overhead $240,000 Variable Overhead $200,000 Direct Labor $110,000 Direct Materials $170,000 Sales totaled $825,000 for the year, variable selling expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There were no units in the beginning inventory. 85. Under variable costing, the company’s net income for the year would be a. $101,250 lower than under absorption costing. b. $60,000 lower than under absorption costing. c. $101,250 higher than under absorption costing. d. $60,000 higher than under absorption costing.”,”2Difference between production and sales:20,000 – 15,000 = 5,000 unitsPer unit fixed overhead = 240,000 = $12 / unit 20,000 Production > Sales Absorption Net Income > Variable Net Income By 5,000 x 12 = $60

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“During 19×2, Krepps Company manufactured[…]

Read more

“Pardoe, Inc., manufactures a product called Product A. The company uses a standard cost system and has established the following standards for one unit of Product A: Standard Standard Price Standard Quantity or Rate Cost Direct materials 1.5 pounds $3 per pound $4.50 Direct labor 0.6 hours $6 per hour 3.60 Variable overhead 0.6 hours $1.25 per hour .75 $8.85 ÍÍÍÍÍ During March 19×3, the following activity was recorded by the company relative to the production of Product A: I. The company produced 3,000 units during the month. II. A total of 8,000 pounds of material were purchased at a cost of $23,000. III. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,000 pounds of material remained in the warehouse unused. IV. The company employs 10 people to work on the production of Product A. During March, each worked at an average of 160 hours at a rate of $6.50 per hour. In the past, the 10 persons employed in the production of Product A consisted of four senior workers and six assistants. During March, the company experimented with five senior workers and five assistants. V. Variable overhead is assigned to Product A on the basis of direct labor-hours. Variable overhead costs during March totaled $1,800.101. The variable overhead efficiency variance for March is: a. $1,050 F. b. $1,050 U. c. $250 F. d. $250 U.”

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Pardoe, Inc., manufactures a product[…]

Read more