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. 2) Determine total manufacturing costs to
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Chapter 18 Test Bank True/False Questions 1. Indirect compensation includes free meals‚ life insurance‚ and discounts on accommodations. (T) * It is a contract between employee and employer * Aim to attract and keep loyal employees * Includes: paid vacation; health benefits; life insurance; free meals; free living accommodation; use of recreational facilities operated by the employer; discounts on accommodations; use of a company vehicle; reimbursement for outside classes; child
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fixed cost and the variable cost of books while calculating the total cost. Finally‚ they overlooked the possible increase in the annual capacity of processed donations that would result from hiring additional employees. To correct these errors‚ I revised the cost schedules and the income statements for both before and after acquiring additional funds. I decided to use the contribution approach because I believe that it will be more relevant to separate the fixed cost and the variable cost‚ since they
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cost for a new project at $100‚000 and a variable cost of $5 per unit. Based on these calculations‚ the low-volume project would not be profitable. She shares her dismay with Nina Smythe‚ another manager. Nina strongly advises her to revise her estimates. She points out that several of the costs that had been classified as fixed costs could be considered variable‚ since they are mixed costs. When the data has been revised classifying those costs as variable costs‚ the project appears viable. Part
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EXERCISE 3–1: Process Costing and Job-Order Costing [LO1] Which method of determining product costs‚ job-order costing or process costing‚ would be more appropriate in each of the following situations? * a. An Elmer’s glue factory. * b. A textbook publisher such as McGraw-Hill. * c. An Exxon oil refinery. * d. A facility that makes Minute Maid frozen orange juice. * e. A Scott paper mill. * f. A custom home builder. * g. A shop that customizes vans. * h. A
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contains prize. (b) Explain the rolling of a fair die and then flipping of a fair coin with the help of tree diagram. Q.2 (a) How can we differentiate between continuous and discrete random variables. Explain with the help of examples. (b) Let X be a random variable having normal distribution with mean 48 and standard deviation 10. Then find [pic]. Q.3 (a) Compute the mean‚ median‚ mode and standard deviation for the following discrete probability distribution. |Value
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20 per kg‚ R costs 20 paisa per kg and empty bag costs 80 paisa each 4. It requires 9 minutes of direct labour time to produce and fill one bag of P. Labour cost is Rs 5 per hour. 5. Variable manufacturing costs are Rs 0.45 per bag. Fixed manufacturing costs are Rs 30‚000 per quarter. 6. Variable selling and administration expenses are 5% of sales‚ and fixed administration and selling expenses are Rs 25‚000 per quarter. 7. Stock levels are planned as follows: Beginning
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1. Service Cost Allocations CLASS: Teck Tecky Water Services provides water for Departments A‚B and C and has prepared its total budget using the following information for the next year:- Fixed Costs $300‚000 Budgeted Gallon Usage:- Variable Costs $0.10 per gallon Dept. A 2‚500‚000 gallons Available capacity 10‚000‚000 gallons Dept. B 2‚000‚000 gallons Dept C 1‚500‚000 gallons Instructions: Assuming that the single-rate method is used and the allocation base is budgeted
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Two potential problems that should be avoided in relevant cost analysis are: 1. 2. Do not assume all variable costs are relevant and all fixed costs are irrelevant. Do not use unit-cost data directly. It can mislead decision makers because a. it may include irrelevant costs‚ and b. comparisons of unit costs computed at different output levels lead to erroneous conclusions 11-6 No. Some variable costs may not differ among the alternatives under consideration and‚ hence‚ will be irrelevant. Some
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period of the term. This will give you the cost of per unit for the amount made and the amount. With the variable costing unlike the absorption costing you will use the fixed overhead‚ instead of the per-unit. The variable costing you would include all of your supplies‚ raw materials and shipping. You will need to add all of your fixed overhead for the entire period. Since this is the variable cost you will not calculate these figures on a per-unit basis‚ but a lump sum. One of the advantages
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