Financial Accounting Valuation Of Assets Questions Homework Help
- September 8, 2017
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- Category: Accounting QA
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1. Bexley Company produces retractable pens. November budgeted production costs are given below
Pens to be produced 100,000
Direct material (variable) $30,000
Direct Labor (variable) $50,000
Supplies (variable) $25,000
Supervision (fixed) $40,000
Depreciation (fixed) $30,000
Other (fixed) $10,000
In December, Bexley expects to produce 120,000 pens. Assuming no structural changes, what is Bexleys budgeted production cost per pen for December?
2.Use the cost information in (1) above. In October, the actual direct labor costs were $46,000 and Bexley produced and sold 90,000 pens. Calculate the direct material performance variance (difference)?
3.A manufacturing company produces 80,000 units of product A at a total cost of $2.4 million. Total fixed costs are $1million. If the company increases production by 25% and uses a 40% markup.Calculate the price per unit?\
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4.A company using activity based pricing marks up the direct cost of goods by 39% plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $6.00 per order placed; $3.00 per separate item ordered; $28.00 per return. A customer places 10 orders with a total direct cost of $2,210, orders 312 separate items, and makes 8 returns. What will the customer be charged?
5.Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000. If a product requires 7,000 machine hours, how much manufacturing overhead will be allocated to this product?
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