Controller Incorporated produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour):ClashSales price (per unit)$ 430Slash$ 358Costs (per unit):Direct materials8650Direct labor7498Variable factory overhead (@ $15 per DLH)603019Allocated fixed factory overhead (based on DLHS)Marketing expenses (all variable)24125443Total costs298233Operating income (per unit)$ 132$ 125There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.Both products are produced through the same production departments.In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?Multiple ChoiceSlash, $137.00.

When there are multiple products but only one key factor :-Step 1:- Rank the product on the basis of…

Answered: Controller Incorporated produces two…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost S7,234.50 $3,565.50 69 12 10 20 21 492 697 111 4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: А. 833,100 В. $22,900 C. $51,020 D. $48,676 A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 5. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential…
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 2.10 pounds $ 16.60 per pound $ 34.86 Direct labor 1.00 hours $ 15.90 per hour $ 15.90 Variable manufacturing overhead 1.00 hours $ 9.10 per hour $ 9.10 Total standard cost per unit $ 59.86 Total Variances Reported StandardCost* Priceor Rate Quantity orEfficiency Direct materials $ 627,480 $ 11,542 F $ 33,200 U Direct labor $ 286,200 $ 3,800 U $ 15,900 U Variable manufacturing overhead $ 163,800 $ 4,800 F $ ?† U *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. 4. How…
Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow: Sales price (per unit) Costs (per unit): ClashSlash $250 $172 Direct materials Direct labor 68 42 36 Variable factory overhead (@ $15 per DLH) 45 Allocated fixed factory overhead (based on DLHs) Marketing expenses (all variable) Total costs Operating income (per unit) 285 60 15 36 12 35 32 220 161 $30 $11 There is insufficient labor capacity in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per direct labor hour? O Slash, $23.00 O Clash, $30.00 O Clash, $11.00.
Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour): Clash Slash Sales price (per unit) $ 420 $ 348 Costs (per unit): Direct materials 85 49 Direct labor 72 96 Variable factory overhead (@ $15 per DLH) 60 30 Allocated fixed factory overhead (based on DLHs) 24 12 Marketing expenses (all variable) 53 42 Total costs 294 229 Operating income (per unit) $ 126 $ 119 There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash. Both products are produced through the same production departments. In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?
Help Save & Exit Gesualdo, Incorporated, manufactures and sells two products: Product Z6 and Product F4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHS) required to produce that output appear below: Product Z6 Product F4 Total direct labor-hours Direct Materials Cost per Unit $ 101.00 $ 217.20 Activity Cost Pools. Labor-related 300 600 Machine setups Order size Direct Labor- Total Direct Expected Hours Per Labor- Production Unit Hours 8.0 11.0 The direct labor rate is $24.70 per DLH. The direct materials cost per unit for each product is given below: Product Z6 Product F4 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Expected Activity Product F4 6,600 600 3,500 Activity Measures DLHs setups MHS Saved Estimated Overhead Cost $ 98,640 18,711 388,360 $ 505,711 2,400 6,600 9,000 als Handling Costs Submit
Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: Inputs (1) Standard Quantity or Hours (2)StandardPriceor Rate StandardCost(1) × (2) Direct materials 2.10 pounds $ 16.60 per pound $ 34.86 Direct labor 1.00 hours $ 15.90 per hour $ 15.90 Variable manufacturing overhead 1.00 hours $ 9.10 per hour $ 9.10 Total standard cost per unit $ 59.86 Total Variances Reported StandardCost* Priceor Rate Quantity orEfficiency Direct materials $ 627,480 $ 11,542 F $ 33,200 U Direct labor $ 286,200 $ 3,800 U $ 15,900 U Variable manufacturing overhead $ 163,800 $ 4,800 F $ ?† U *Applied to Work in Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored.…
Swifty Corporation, Inc.currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $10 Variable overhead 5 Fixed overhead 8 Total $23 The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket? $23 $15 $35 $18
Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product Q5 Product JØ Total Labor-related DLHS $191,748 70,536 295,592 Production orders 3,000 2,800 5,800 orders 300 500 800 Order size MHs 4,300 4,500 8,800 $557,876 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $36.23 per MH $68.48 per MH $96.19 per MH
The Wes Company manufactures several different products. Unit costs associated with Product AGT210 are as follows: Direct materials $ 40 Direct manufacturing labour 8. Variable manufacturing overhead 12 Fixed manufacturing overhead 23 Sales commissions (2% of sales) 6. Administrative salaries Total $98 What are the inventoriable costs per unit associated with Product AGT210? Select one: C a. 48. O b. $66. $60 $83
Vitex, Inc. manufactures a popular consumer product and It has provided the following data excerpts from Its standard cost system: (2) Standard Standard (1) standard Quantity or Price Cost or Rate $17.10 per pound $15.60 per hour $ 9.20 per hour Inputs Direct materials (1) x (2) $ 42.75 $ 15.60 $ 9.20 $ 67.55 Hours 2.50 pounds 1.00 hours Direct labor Variable manufacturing overhead 1.00 hours Total standard cost per unit Variances Reported Quantity or Efficiency $ 34, 200 U $ 15,680 U Total Standard Price or Rate $769,500 $ 13,630 F $280, 800 $ 3,800 U Cost* Direct materials Direct labor Variable manufacturing overhead $165,600 $ 4,600 F 24 *Applied to Work In Process during the period. The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materlals purchased during the period were used in production. Work In process Inventories are insignificant and can be ignored. Requlred: 1. How many units were produced last period? 2. How…
Neelopak Berhad prepared the standard cost data for one of their products.Direct Labour (0.65 hours @ RM11) RM7.15Direct Materials (5 meters @ RM5) RM25Variable Overhead (0.65 hours @ RM7) RM4.55Fixed Overhead (0.65 hours @ RM3) RM1.95Standard cost per unit RM38.65There is the actual cost data information:Production 7,500 unitDirect materials used (23500 meter) RM124,550Direct materials purchasing (24,000 meter) RM132,000Direct labor (3000 hours) RM34,500Variable overhead RM21,600Fixed overhead RM7,800Budgeted activities are 2,600 hours.You are required to calculate:iv) Variance of direct labors’ efficiencyv) Variance of variable overhead expensesvi) Variance of variable overhead’s efficiencyvii) Variance of fixed overhead expensesviii) Variance of fixed overhead volume

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