The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8.7 hours Standard labor rate $ 18.10 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 3,800 hours Actual total labor cost $ 67,640 Actual output 500 units What is the labor efficiency variance for the month?
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Sunk costs are never relevant in decision making.
Sunk costs are never relevant in decision making.
Assume the following information for a company that produced…
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 77 Direct labor $ 50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company’s net operating income?
Assume a company manufactures many products, one of which no…
Assume a company manufactures many products, one of which normally sells for $48 per unit. The company’s accounting system reports the following unit product cost for this product: Per Unit Direct materials $ 18 Direct labor 12 Manufacturing overhead 10 Total cost $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range.A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $42. The company can fulfill this order using the existing manufacturing capacity. To accommodate the customer’s desired product design, the company would incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $520 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order?
Use the following information to determine the break-even po…
Use the following information to determine the break-even point in sales dollars: Unit sales 50,000 Units Dollar sales $ 500,000 Fixed costs $ 204,000 Variable costs $ 187,500
) Fixed costs are irrelevant in decisions about whether a pr…
) Fixed costs are irrelevant in decisions about whether a product should be dropped.
Net operating income is income before interest and taxes.
Net operating income is income before interest and taxes.
Assume the following information for a company that produced…
Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 74 Direct labor $ 50 Variable manufacturing overhead $ 10 Sales commission $ 8 Fixed manufacturing overhead $ 289,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? The absorption costing net operating income will be lower than the variable costing net operating income by $28,900. The absorption costing net operating income will be lower than the variable costing net operating income by $100,900. The absorption costing net operating income will be higher than the variable costing net operating income by $28,900. The absorption costing net operating income will be higher than the variable costing net operating income by $100,900.
Assume a company reported the following results: …
Assume a company reported the following results: Sales $ 400,000 Variable expenses 260,000 Contribution margin 140,000 Fixed expenses 40,000 Net operating income $ 100,000 Average operating assets $ 425,000 The return on investment (ROI) is closest to:
Assume the following information for a merchandising company…
Assume the following information for a merchandising company: Number of units sold 20,000 Selling price per unit $ 30 Variable selling expense per unit $ 3.5 Variable administrative expense per unit $ 3.0 Fixed administrative expenses $ 50,000 Beginning merchandise inventory $ 24,000 Ending merchandise inventory $ 19,000 Merchandise purchases $ 340,000 What is the contribution margin?