83.
Grover Company has the following data for the production and sale of 2,000 units.
Sales price per unit
$800 per unit
Fixed costs:
Marketing and
administrative
$400,000 per
period
Manufacturing overhead
$200,000 per
period
Variable costs:
Marketing and
administrative
$50 per unit
Manufacturing overhead
$80 per unit
Direct labor
$100 per unit
Direct materials
$200 per unit
What is the full cost per unit of making and selling the product?
84.
Grover Company has the following data for the production and sale of 2,000 units.
Sales price per unit
$800 per unit
Fixed costs:
Marketing and
administrative
$400,000 per
period
Manufacturing overhead
$200,000 per
period
Variable costs:
Marketing and
administrative
$50 per unit
Manufacturing overhead
$80 per unit
Direct labor
$100 per unit
Direct materials
$200 per unit
What is the contribution margin per unit?
85.
The following information was collected from the accounting records of the Part SX9 for
3,000 units:
Per Unit
Per Period
$350
80
40
60
$90,000
20
60,000
What is Part SX9′s total cost per unit?
2-64
86.
Mountainburg Industries has developed two new products but has only enough plant
capacity to introduce one product during the current year. The following data will assist
management in deciding which product should be selected.
Mountainburg’s fixed overhead includes rent and utilities, equipment depreciation, and
supervisory salaries. Selling and administrative expenses are not allocated to individual
products.
Product
L
Product
W
Direct materials
$44
$36
Machining labor ($12/hour)
18
15
Assembly labor ($10/hour)
30
10
Variable overhead
($8/hour)
36
18
Fixed overhead (4/hour)
18
9
Total Manufacturing Cost
$146
$88
Estimated selling price per
unit
$170
$100
Actual research and
development costs
$240,000
$175,000
Estimated advertising costs
$500,000
$350,000
2-65
87.
Mountainburg Industries has developed two new products but has only enough plant
capacity to introduce one product during the current year. The following data will assist
management in deciding which product should be selected.
Mountainburg’s fixed overhead includes rent and utilities, equipment depreciation, and
supervisory salaries. Selling and administrative expenses are not allocated to individual
products.
Product
L
Product
W
Direct materials
$44
$36
Machining labor ($12/hour)
18
15
Assembly labor ($10/hour)
30
10
Variable overhead
($8/hour)
36
18
Fixed overhead (4/hour)
18
9
Total Manufacturing Cost
$146
$88
Estimated selling price per
unit
$170
$100
Actual research and
development costs
$240,000
$175,000
Estimated advertising costs
$500,000
$350,000
2-66
88.
Mountainburg Industries has developed two new products but has only enough plant
capacity to introduce one product during the current year. The following data will assist
management in deciding which product should be selected.
Mountainburg’s fixed overhead includes rent and utilities, equipment depreciation, and
supervisory salaries. Selling and administrative expenses are not allocated to individual
products.
Product
L
Product
W
Direct materials
$44
$36
Machining labor ($12/hour)
18
15
Assembly labor ($10/hour)
30
10
Variable overhead
($8/hour)
36
18
Fixed overhead ($4/hour)
18
9
Total Manufacturing Cost
$146
$88
Estimated selling price per
unit
$170
$100
Actual research and
development costs
$240,000
$175,000
Estimated advertising costs
$500,000
$350,000
2-67
89.
Mountainburg Industries has developed two new products but has only enough plant
capacity to introduce one product during the current year. The following data will assist
management in deciding which product should be selected.
Mountainburg’s fixed overhead includes rent and utilities, equipment depreciation, and
supervisory salaries. Selling and administrative expenses are not allocated to individual
products.
Product
L
Product
W
Direct materials
$44
$36
Machining labor ($12/hour)
18
15
Assembly labor ($10/hour)
30
10
Variable overhead
($8/hour)
36
18
Fixed overhead (4/hour)
18
9
Total Manufacturing Cost
$146
$88
Estimated selling price per
unit
$170
$100
Actual research and
development costs
$240,000
$175,000
Estimated advertising costs
$500,000
$350,000
Research and development costs for Mountainburg’s two new products are
90.
Mountainburg Industries has developed two new products but has only enough plant
capacity to introduce one product during the current year. The following data will assist
management in deciding which product should be selected.
Mountainburg’s fixed overhead includes rent and utilities, equipment depreciation, and
supervisory salaries. Selling and administrative expenses are not allocated to individual
products.
Product
L
Product
W
Direct materials
$44
$36
Machining labor ($12/hour)
18
15
Assembly labor ($10/hour)
30
10
Variable overhead
($8/hour)
36
18
Fixed overhead (4/hour)
18
9
Total Manufacturing Cost
$146
$88
Estimated selling price per
unit
$170
$100
Actual research and
development costs
$240,000
$175,000
Estimated advertising costs
$500,000
$350,000
91.
Under full absorption costing, which of the following are included in product costs?
92.
Ramos Company has the following unit costs:
Variable manufacturing overhead
$13
Direct materials
12
Direct labor
17
Fixed manufacturing overhead
10
Fixed marketing and administrative
8
What cost per unit would be used for product costing under full absorption costing?
93.
Ramos Company has the following unit costs:
Variable manufacturing
overhead
$13
Direct materials
12
Direct labor
17
Fixed manufacturing
overhead
10
Fixed marketing and
administrative
8
What cost per unit would be used for product costing under variable costing?
94.
Vegas Company has the following unit costs:
Variable manufacturing overhead
$25
Direct materials
20
Direct labor
19
Fixed manufacturing overhead
12
Variable marketing and administrative
7
Vegas produced and sold 10,000 units. If the product sells for $100, what is the gross
margin?
95.
Vegas Company has the following unit costs:
Variable manufacturing overhead
$25
Direct materials
20
Direct labor
19
Fixed manufacturing overhead
12
Variable marketing and administrative
7
Vegas produced and sold 10,000 units. If the product sells for $100, what is the
contribution margin?
96.
Vegas Company has the following unit costs:
Variable manufacturing overhead
$25
Direct materials
20
Direct labor
19
Fixed manufacturing overhead
12
Variable marketing and administrative
7
Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating
profit under full absorption costing?
97.
Vegas Company has the following unit costs:
Variable manufacturing overhead
$25
Direct materials
20
Direct labor
19
Fixed manufacturing overhead
12
Variable marketing and administrative
7
Vegas produced and sold 10,000 units. If the product sells for $100, what is the operating
profit using a contribution margin income statement?
98.
Beginning inventory in units
0
Units produced
4,800
Units sold
4,000
Sales
$400,000
Material cost (unit level or variable)
$96,000
Variable conversion cost used
(Committed)
$48,000
Facility-level or fixed manufacturing
cost
$72,000
Indirect operating costs (fixed)
$80,000
99.
Beginning inventory in units
0
Units produced
4,800
Units sold
4,000
Sales
$400,000
Material cost (unit level or variable)
$96,000
Variable conversion cost used
(Committed)
$48,000
Facility-level or fixed manufacturing
cost
$72,000
Indirect operating costs (fixed)
$80,000
100.
Beginning inventory in units
0
Units produced
4,800
Units sold
4,000
Sales
$400,000
Material cost (unit level or variable)
$96,000
Variable conversion cost used
(Committed)
$48,000
Facility-level or fixed manufacturing
cost
$72,000
Indirect operating costs (fixed)
$80,000
101.
Beginning inventory in units
0
Units produced
4,800
Units sold
4,000
Sales
$400,000
Material cost (unit level or variable)
$96,000
Variable conversion cost used
(Committed)
$48,000
Facility-level or fixed manufacturing
cost
$72,000
Indirect operating costs (fixed)
$80,000
102.
Beginning inventory in units
0
Units produced
4,800
Units sold
4,000
Sales
$400,000
Material cost (unit level or variable)
$96,000
Variable conversion cost used
(Committed)
$48,000
Facility-level or fixed manufacturing
cost
$72,000
Indirect operating costs (fixed)
$80,000