Fixed costs: Manufacturing Marketing Administrative Variable costs: Manufacturing Marketing Administrative $120,000 42,000 22,000 What is the contribution margin for the year? A) $260,000 B) $310,000 C) $370,000 D) $510,000 $80,000 22,000 38,000 During the year, Bernard produced and sold 51,000 units of product at a selling price of $10.00 per unit.

Fixed costs: Manufacturing Marketing Administrative Variable costs: Manufacturing Marketing Administrative $120,000 42,000 22,000 What is the contribution margin for the year? A) $260,000 B) $310,000 C) $370,000 D) $510,000 $80,000 22,000 38,000 During the year, Bernard produced and sold 51,000 units of product at a selling price of $10.00 per unit.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...

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A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
cost accounting; The manager of Dukey's Shoe Station estimates operating costs for the year will include $495,000 in fixed costs. Required; a. Find the break-even point in sales dollars with a cotribution margin ratio of 40 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 20 percent
1. XYZ has the following cost components for 100,000 units of product for the year: Raw Materials P 200,000 Direct Labor 100,000 Variable Manufacturing overhead 100,000 Fixed Manufacturing overhead 100,000 Variable Selling/administrative expenses 50,000 Fixed Selling/ administrative expenses 100,000 Total Costs 650,000 If XYZ produced and sold 110,000 units, how much would be its total costs? (Hint: compute for the unit cost) 1. P 650,000 2. P 715,000 3. P 695,000 4. P 540,000 O 1 O 2 O 4
III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
Accounting Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product. Total Costs Variable Manufacturing $ 2,351,000 Variable Selling and Administrative 751,000 Plant-level Fixed Overhead 1,202,000 Fixed Selling and Administrative 601,000 Batch-level Fixed Overhead 201,000 Total Investment in Product Line 10,003,000 Expected Sales (units) 20,000 If Johnson determines price using a desired return on life cycle costs of 32%, the price is: Multiple Choice $273.65 $317.15 $386.15 $375.44 $341.15
Spartans Inc. has the following Standard Cost Card: per unit per year Price $21.00 Direct Materials $6.00 Direct Labor $1.80 Var. MOH $0.80 Fixed MOH $36,000 Selling $2.00 Administrative $60,000 1. What is the contribution margin per unit? $8.60, $2.99, $7.59, $10.60, or $4.99 2. What is the contribution margin ratio? 0.3672, 0.6328, 0.7800, 0.2200, or 0.4415 3. Based on your answer from (b), how much of every $1.00 of sales represents variable costs? 4. If direct labor costs increase by $1.00, how will that affect the contribution margin?
Johnson Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units (rounded to a whole number) must be sold in order to realize an operating income of $100,000? a.58,882 b. 5,000 c.47,059 d.41,176