Answer:The product margin for product M5 is $7,385
Explanation:
To calculate the product margin for product M5,
Processing 3,870 ÷ 9,000
= 0.43 per MH
Supervising 25,000 ÷ 1,000
= $25 per batch
To calculate the overhead cost for product M5
Processing 0.43 per MH × 500
= $215
Supervising $25 per batch × 500 batches
= $12,500
Total = $12,500 + $215
= $12,715
To calculate the product margin for product M5 under activity based costing
$
Sales. 95,400
Less:
Direct materials 32,500
Direct Labour 42,800
----------------
Prime Cost. 75,300
Add: Overhead 12,715
----------------
Total Cost of production. 88,015
-----------------
Product Margin. 7,385
------------------
Answer:
The total cost of the departmental Work-in-Process Inventory at the end of the period = $ 8200
Explanation:
Units % of EUP
Completion D.Materials Conversion
Costs
No Of Units
Completed 1400 100 1400 1400
<u>Units In Process 400 50% 400 200 </u>
<u>Total 1800 1800 1600</u>
Ending Inventory Valuation
Working:
Direct Materials = $( 25,200/ 1800 )*400= $5600
Conversion Costs= ($ 20800/1600)*200= $2600
Total Ending Inventory Costs= $5600+$2600= $ 8200
Direct materials (1,800 at $14.00) $25,200
Direct labor 12,480
Factory overhead 8,320
Total Manufacturing Costs $ 46000
Answer: Tactical manager
Explanation:
Shauna has the role of a tactical manager in her company, as the tactical manager her duty is to study her organization's goals and then create activities that the employees should carry out in order for the organization to achieve it's goals.
Answer:
The effect on net operating income would be an increase of $137,900
Explanation:
Giving the following information:
Selling price $85
Variable expenses per unit $ 35
If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.
To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:
Effect on income= 3,000*(85 - 35) - 12,100= $137,900
