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Katena32 [7]
2 years ago
5

Whitney Company had no units in process at the beginning of the month. During the month 8,000 new units were started, 6,000 of t

hese were completed but 2,000 were still in process at the end of the month. The units still in process were 100% complete as to materials but only 30% complete as to conversion costs. The cost of materials used in production during the month was $20,800 and the costs of labor and overhead were $30,360. If Whitney Company uses process costing, the total cost of making a unit of product during this month rounded to the nearest cent is:
Business
1 answer:
shusha [124]2 years ago
4 0

Answer:

$7.20

Explanation:

                        Units  % Mat.  EUP- Mat.  % Conv.   EUP- Conv.

Units completed &               6000    100%     6000         100%        6000

transferred out

Units in ending inventory    2000    100%     2000         30%          600

Equivalent units of production                     8000                           6600

Cost per Equivalent Unit of Production      

                                                         Materials    Conversion      Total

Beginning costs             -                       -                 -

During the month costs                   <u>$20,800 </u>       <u>$30,360</u>

Total cost                                          $20,800        $30,360

÷ Equivalent units of production     <u>  8.000</u>          <u>   6,600</u>

Cost per equivalent unit                 $2.60             $4.60           $7.20

of production

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Blumen Textiles Corporation began April with a budget for 22,000 hours of production in the Weaving Department. The department h
tankabanditka [31]

Answer:

A. 1300 Favorable

B. $7,200 UnFavorable

Explanation:

A. Calculation to determine the variable factory overhead controllable variance

First step is to calculate the Budgeted rate of variable overhead

Budgeted rate of variable overhead = $50,600/22,000

Budgeted rate of variable overhead= $2.3per hour

Second step is to calculate the Standard variable overhead for actual production

Standard variable overhead for actual production = 23,000 x $2.3

Standard variable overhead for actual production = $52,900

Now let calculate the Variable factory overhead controllable variance using this formula

Variable factory overhead controllable variance = Standard variable overhead - Actual variable overhead

Let plug in the formula

Variable factory overhead controllable variance= $52,900 - ($86,400 - 34,800)

Variable factory overhead controllable variance= 1300 Favorable

Therefore Variable factory overhead controllable variance is 1300 Favorable

B. Calculation to determine the fixed factory overhead volume variance.

First step is to calculate the Predetermined fixed overhead rate using this formula

Predetermined fixed overhead rate = 34,800/29,000

Predetermined fixed overhead rate = $1.20 per hour

Second step is to calculate the Fixed overhead applied

Using this formula

Fixed overhead applied = Standard hours x Standard rate

Let plug in the formula

Fixed overhead applied= 23,000 x $1.20

Fixed overhead applied= $27,600

Now let calculate the Fixed overhead volume variance using this formula

Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead

Let plug in the formula

Fixed overhead volume variance= $27,600 - 34,800

Fixed overhead volume variance= $7,200 UnFavorable

Therefore The Fixed overhead volume variance is $7,200 UnFavorable

5 0
3 years ago
Select the correct answer.
ivolga24 [154]

First, the quotation for each car model has to be obtained. The quotation must include the taxes including insurance.Then, a comparison is done taking into account the mileage and the maximum allotted budget for the other expenses which is $800.

7 0
3 years ago
Economies of scale can arise from: Group of answer choices High prices on bulk purchases of raw material inputs and component pa
Alex787 [66]

Answer:

An advantage gained by spreading fixed production costs over a large production volume.

Explanation:

Economies of scales refer to that scale where the larger quantity of an output having similar level fo fixed cost cause in less cost per unit. It could be occured from an advantage that could be benefit by distributing the fixed production cost over and above to the wider production volume

Therefore the above statement should be considered

8 0
2 years ago
When an individual sells a $100 bond to the Fed, she may either deposit the check she receives or cash it for currency. How do r
Vladimir [108]

The reserve currency in the circulation and in the monetary base have high-powered and the money increases

Explanation:

When she deposit it for the check then it is called as the currency is left for circulation in the bank and hence it is called as circulation and if she receives the currency then it is called as the monetary

So in both the cases the value of the currency is increased that is if she deposits it she will have a high power and the bank will deposit the interest amount every month or annually if she receives it in cash then the value of the money increases

6 0
3 years ago
Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirectcost rate to allocate manufactu
Scrat [10]

Answer:

D) = $3,927

Explanation:

<em>The cost of a product is the addition of direct material cost + direct labour cost + manufacturing overheads</em>

<em>Overhead absorption rate</em><em> = </em><em>Budgeted Overheads/ Budgeted machine hours</em>

= $45,000/100,000 hours

= $0.45

<em>Product cost</em><em> </em>= 2,000 + 400 + (0.45× 900)

                     = $2,805

<em>Bid price</em> = Product + ( mark up)

            = 2,805 + (40% × 2,805)

            = $3,927

<em>Bid price</em>   = $3,927

5 0
2 years ago
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