Blog

Blottone Corporation, a manufacturing Corporation, has provided data concerning its operations for May. The beginning balance in the raw materials account was $20,000 and the ending balance was $36,000. Raw materials purchases during the month totaled $63,000. Manufacturing overhead cost incurred during the month was $111,000, of which $2,000 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

Assume (1) a company’s plantwide predetermined overhead rate is $13.00 per direct labor hour, and (2) its job cost sheet for Job X shows that this job incurred direct materials and direct labor charges of $500 and $360, respectively. If Job X’s total job cost is $1,198, how many direct labor hours were worked on this job?  Hint: figure out the applied Overhead and then calculate the hours.

Assume the following information for a company that produced and sold 10,000 units during its first year of operations:    Per Unit   Per Year   Selling price   $ 200             Direct materials   $ 67             Direct labor   $ 50             Variable manufacturing overhead   $ 10             Fixed manufacturing overhead           $ 300,000     Using absorption costing, what is the company’s unit product cost?

Maintenance costs at a Staton Corporation factory are listed below:   Machine-Hours   Maintenance Cost March 3,627     $ 54,384 April 3,588     $ 53,980 May 3,637     $ 54,453 June 3,638     $ 54,491 July 3,572     $ 53,843 August 3,611     $ 54,196 September 3,644     $ 54,550 October 3,609     $ 54,181 November 3,669     $ 54,767  Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:

Mishakoe Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.     Sales (1,000 units) $ 50,000 Variable expenses   32,500 Contribution margin   17,500 Fixed expenses   12,250 Net operating income $ 5,250  The break-even point in unit sales is closest to:

Story Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.       Sales (4,200 units) $ 155,400 Variable expenses   100,800 Contribution margin   54,600 Fixed expenses   42,400 Net operating income $ 12,200  If the company sells 4,600 units, its total contribution margin should be closest to:

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

Rita Corporation has provided the following data for its two most recent years of operation:       Selling price per unit $ 67 Manufacturing costs:     Variable manufacturing cost per unit produced:     Direct materials $ 10 Direct labor $ 5 Variable manufacturing overhead $ 3 Fixed manufacturing overhead per year $ 252,000 Selling and administrative expenses:     Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 65,000     Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 9,000 7,000 Units sold during the year 8,000 7,000 Units in ending inventory 1,000 1,000  The net operating income (loss) under absorption costing in Year 2 is closest to:

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:       Selling price $ 121 Units in beginning inventory   0 Units produced   6,000 Units sold   5,600 Units in ending inventory   400 Variable costs per unit:     Direct materials $ 38 Direct labor $ 53 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 11 Fixed costs:     Fixed manufacturing overhead $ 60,000 Fixed selling and administrative expense $ 28,000  What is the total period cost for the month under variable costing?

The following costs were incurred in May:     Direct materials $ 41,000   Direct labor $ 13,000   Manufacturing overhead $ 46,000   Selling expenses $ 18,000   Administrative expenses $ 15,000    Conversion costs during the month totaled: