Gower Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2016 Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Amount (in $) 300 000 225 000 0% variable 37 500 56 250 60 000 75 000 95 000 Rent, property, taxes and administration Gower Inc. produced 75 000 units in 2016. Selling price-$20 per unit sold. Required: 1. Prepare a schedule of variable, fixed and total manufacturing costs for each category in 2016. Estimate total manufacturing costs and total manufacturing costs per unit ( 2. Calculate the break-even point in unit sales tis); 3. Calculate the quantity that needs to be sold to achieve a target operating income of $25 000 C+ 100 000
Gower Inc., a manufacturer of plastic products, reports the following manufacturing costs and account analysis classification for the year ended December 31, 2016 Account Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Classification All variable All variable All variable 20% variable 50% variable 40% variable 0% variable Amount (in $) 300 000 225 000 0% variable 37 500 56 250 60 000 75 000 95 000 Rent, property, taxes and administration Gower Inc. produced 75 000 units in 2016. Selling price-$20 per unit sold. Required: 1. Prepare a schedule of variable, fixed and total manufacturing costs for each category in 2016. Estimate total manufacturing costs and total manufacturing costs per unit ( 2. Calculate the break-even point in unit sales tis); 3. Calculate the quantity that needs to be sold to achieve a target operating income of $25 000 C+ 100 000
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 3P: Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on...
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