shops in one-kilogram bags. The major cost of the coffee is raw materials in the form of unprocessed coffee beans. However‚ the company’s predominately automated roasting‚ blending‚ and packing processes require a substantial amount of manufacturing overhead. Some of IBI’s coffees are very popular and sell in large volumes‚ while a few of the newer blends sell in very low volumes. IBI prices its coffees at manufacturing cost plus a markup of 25% with some adjustments made to keep the company prices
Premium Generally Accepted Accounting Principles Inventory Manufacturing
Sales margin/contributions variances | | | | | | | actual sales made this period | | | standard mix proportion is: | | | actual sales at standard mix | | | | | | | | | | | | | budgeted sales | | | | budgeted sales margin | | | =budgeted sales revenue | | | | | | | | | | | | | actual sales | | | | actual sales margin | | | | =actual sales revenue | | | | | | | | | | | | | * * total sales margin variance
Premium Direct material price variance Cost Cost accounting
TEST QUESTIONS: Questions 1-3 refer to the following: The following selected data for March were taken from Rubenstein Company’s financial statements: Cost of goods available for sale Manufacturing overhead Cost of goods manufactured Finished goods inventory ‑ ending Direct materials used Sales Selling and administrative expenses Direct labor Work in process inventory ‑ beginning $ 65‚000 20‚000 51‚000 10‚000 15‚000 105‚000 30‚000 20‚000 0 1. The gross
Premium Variable cost Net present value Costs
total overhead costs was $805‚000 based on the assumption that 23‚000 units would be produced and sold. The company estimates that 20% of its overhead is variable and the remainder is fixed. The total overhead cost according to the flexible budget if 27‚000 units were produced and sold is (Do not round intermediate calculations.): | | $837‚000 | | $805‚000 | → | $833‚000 | | $913‚500 | First‚ determine the budgeted variable overhead as follows. Budgeted variable overhead = Budgeted
Premium Variable cost Costs Balanced scorecard
Exam—Page 2 5. rate? Which of the following is the correct method to calculate a predetermined overhead a. Budgeted total manufacturing cost ÷ budgeted amount of cost driver. b. Budgeted overhead cost ÷ budgeted amount of cost driver. c. Budgeted amount of cost driver ÷ budgeted overhead cost. d. Actual overhead cost ÷ budgeted amount of cost driver. 6. Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor
Premium Costs Variable cost Fixed cost
Harvard Business School 9-187-107 Rev. November 4‚ 1998 John Deere Component Works (A) The phone rang in the office of Keith Williams‚ manager of Cost Accounting Services for Deere & Company. On the line was Bill Maxwell‚ accounting supervisor for the Gear and Special Products Division in Waterloo‚ Iowa. The division had recently bid to fabricate component parts for another Deere division. Maxwell summarized the situation: They’re about to award the contracts‚ and almost all of the work
Premium Cost accounting
of 3000 boxes‚ each containing 144 bars. Despite the company’s profitability as a whole‚ CBI’s management is concerned with the profitability of each product and the product costing method currently employed. The management questions whether the overhead allocation base of direct labor hours accurately reflects the cost incurred in the production of each product. Initial report by the cost accountant shows that Creamy Crunch is profitable whereas Almond Dream is at a loss. Both the marketing manager
Premium Cost accounting Profit Employment
Direct costs are valuable in the production of the navigation system at VectorCal‚ because it shows the company how much it is spending on a particular cost object. Indirect Costs = Costs that are not directly attributed to cost objects‚ such as overhead‚ general and administrative costs (i.e. depreciation‚ insurance‚ power‚ management salaries). Indirect costs are valuable in the production of the navigation system at VectorCal‚ because they identify potential areas where the company can cut back
Premium Automotive navigation system Salary Cost
$354‚100 $327‚400 Work in Process Inventory 112‚600 116‚400 Finished Goods Inventory 138‚500 142‚800 Purchases of materials for June were $142‚600. Direct labor costs were incurred and computed on the basis of 27‚000 hours at $8 per hour. Actual overhead costs incurred in June were as follows: operating supplies used‚ $5‚700; janitorial and materials handling labor‚ $38‚100; employee benefits $110‚800; heat‚ light‚ and power‚ $50‚000; factory depreciation‚ $8‚400; property taxes‚ $8‚000; and expired
Premium Variable cost Costs
per textbook is $75. Projected costs for 6‚000 textbooks are as follows: Direct Materials $94‚500 Direct Labour $45‚000 Variable Manufacturing Overhead $48‚000 Fixed Manufacturing Overhead $96‚000 * Fixed Selling and Administrative $42‚500 Variable Selling and Administrative $25‚000 * Total Fixed Manufacturing Overhead increases to $128‚000 for production levels over 7500 textbooks Required: 1) Determine total variable manufacturing costs to produce one textbook.
Premium Variable cost Management accounting Costs