Tag: accounting

“The Southern Company manufactures a single product. Assume the following data for 19×5: Variable costs per unit: Selling and administrative $14 Production $38 Fixed costs in total: Production $140,000 Selling and administrative $ 84,000 During 19×5, 7,000 units were produced and 6,800 units were sold. Page 23 Version 1 83. The inventory carrying value of finished goods at December 31, 19×5, under variable costing would be a. The same as absorption costing. b. $6,800 greater than under absorption costing. c. $6,800 less than under absorption costing. d. $4,000 less than under absorption costing.”,”4The inventory carrying value of finished goods at December 31, 19×5:Variable Costing = 200 x 38 = $7,600Absorption Costing: = 200 x (38 + (140,000/7000) = $11,60011,600 – 7,600 = 4,000Absorption costing would be $4

Managerial Accounting

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“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 $1,800.99. The labor efficiency variance for March is: a. $5,040 U. b. $1,200 U. c. $1,200 F. d. $5,040 F.”,”3Labor Efficiency Variance =Actual Hours at Standard Rate – Standard hours Allowed at Standard Rate= (10 x 160 x 6) – (300 x .6) x 6= $1

Managerial Accounting

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

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“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[…]

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“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[…]

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“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[…]

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“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[…]

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“Elbrege Company manufactures a single product. Assume the following data for 19×4: Fixed costs in total: Selling and Administrative $50,000 Production $75,000 Variable costs per unit: Selling and Administrative $4 Production $7 There were no units in inventory on January 1. During the year 25,000 units were produced and 20,000 units were sold. Page 24 Version 1 86. Assume that the selling price Elbrege Company’s product is $30 per unit. The company’s net income for 19×4 under variable costing would be: a. $255,000 b. $270,000 c. $200,000 d. $280,000”,”1The company’s net income for 19×4 under variable costing:Sales (20000 x 30) $600,000 Less Variable Costs: Manufacturing (20000 x 7) 140,000 Selling (20000 x 4) 80,000 220,000Contribution Margin 380,000 Less Fixed Costs: Manufacturing 75,000 Selling 50,000 125,000Net Income $255

Managerial Accounting

Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.“Elbrege Company manufactures a single[…]

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