Wet Pets Inc. makes Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 6,600 hours @ $20 per hr $55,000 $26,400 $11,000 (considered a variable expense) $11,000 12,000 units Total Revenue: $1,100,000 Total aquariums sold during the period: 10,000 units Operating Income under absorption costing (after non-production expenses): $224,400 Assume that the fixed costs were the same on a per-unit basis during the prior period.

Wet Pets Inc. makes Direct labor: Production manager salary: Factory rent: Equipment maintenance: Equipment depreciation: Production for the year: 6,600 hours @ $20 per hr $55,000 $26,400 $11,000 (considered a variable expense) $11,000 12,000 units Total Revenue: $1,100,000 Total aquariums sold during the period: 10,000 units Operating Income under absorption costing (after non-production expenses): $224,400 Assume that the fixed costs were the same on a per-unit basis during the prior period.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

The Rafan Company manufactures a product which is sold at Rs.16 each. Under present business conditions, the company is operating at 30% normal capacity with production and sales of 8,000 units per month. An analysis of costs for a recent month sows: Direct Materials Rs. 10,000 Direct Labor 12,000 Superintendent’s salary 5,000 Depreciation Building 2,000 Heat and light 500 Indirect labor 6,000 Deprecation of machinery 3,000 Machinery Repair 1,000 Fire Insurance 1,500 Miscellaneous 8,00 Factory Rent 5,000 Property Tax 400 Total Rs. 47,200 The total marketing expenses were Rs. 50,000, which included 3,000 for packing and shipping. The sales on the special order would require a similar unit cost for packing and shipping. The total administrative and general costs were Rs. 7,000. An offer has been received from a large chain store to purchase 96,000 units to be shipped in equal months each month during the coming year. These units would be manufactured with slight immaterial modifications…
A motor company needs vital infomation, for calculating the cost of running a motor truck per tonne-kms. Driver expenses is S1800 per month, cleaner sálary is $1260 per month, diesel& oil expenses are $0.90 per km. Then repair with maintenance was $1350 per month. Depreciation charges was 23,400/year/month, other expenses were $1300 per month. The day of week were Monday it runs 350kms carries 8.5 tons, Tuesday it runs 300kms carries 7tons, Wednesday it runs 250kms and carries 6.5tons, Thursday it runs 170 kms and carries 9 tons, Friday it runs 290kms and carries 7.5tons and finally on Saturday it runs 215 kms and carries 6.5 tons. Take five weeks for calculation. Calculate total over head only. 2949 5 2898.7 3878.7 2887.6
During its first year of operations, Silverman Company paid $14,000 for direct materials and $ 19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Multiple Choice $37,000 $12,000 $ 7,000 $28,000
The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production personnel in its first year of business. General, selling, and administrative costs came to $8,000 while lease payments and utilities for the production facilities came to $17,000. At a cost of $15.00 per unit, the company produced 5,000 units, of which 3,000 were sold. When was the year's operating net profit for Silverman? $7,000 $12,000 $28,000 $37,000
Josh Cablesource has sales for 2016 of $1,566,777. Information regarding resources for the year are as follows: Resources used Resources SuppliedAdministration $67,000.00 $90,000.00Depreciation $33,000.00 $37,000.00Energy $54,000.00 $125,000.00Training $20,000.00 $23,000.00Short term labor $89,000.00 $89,000.00Long term labor $433,000.00 $435,000.00Marketing $100,000.00 $112,000.00Prepare and activity based Income Statement like the one for exercise 10-53. Show me profit and profit percent.
ake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost per Repair-Hour $ 21,300 $ 16.00 $ 7.00 $ 0.50 $ 1.50 Wages and salaries Parts and supplies Equipment depreciation $ 2,770 Truck operating expenses $5,780 $ 4,630 Administrative expenses $3,820 $ 0.80 For example, wages and salaries should be $21,300 plus $16.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $46.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Rent
Juniper Design, provides design services to residential developers. Last year, the company had net operating income of $450,000 on sales of $1,700,000. The company's average operating assets were $1,900,000 and its minimum required rate of return was 14%. Required: Compute the company's residual income. Residual income
Help Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $410,000 on sales of $2,000,000. The company's average operating assets for the year were $2,200,000 and its minimum required rate of return was 15%. Required: Compute the company's residual income for the year. Residual income
Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts and supplies Fixed Cost per Month $20,600 Cost per Repair-Hour $15.00 $ 7.30 Equipment depreciation $ 2,750 $ 0.35 Truck operating expenses $ 5,710 $ 1.70 Rent $ 4,670 Administrative expenses $ 3,820 $ 0.50 For example, wages and salaries should be $20,600 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $49.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net…
Sunland provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation (straight-line) $1,400 per month Advertising $300 per month $4,930 per month $21 per lawn $11 per lawn $2 per lawn Insurance Weed and feed materials Direct labor Fuel Sunland charges $85 per treatment for the average single-family lawn. For the month ended July 31, 2022, the company had total sales of $12,750. (a) Prepare a CVP income statement for the month ended July 31, 2022. $ Total SUNLAND CVP Income Statement $ $ Per Unit Percent of Sales 9 9 9
During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Group of answer choices $7,000 $12,000 $28,000 $37,000
A local manufacturing company estimated the following expenses for the upcoming year: a. Insurance on factory: $100,000 b. Factory security: 1 guard at $20/hour for a 2,000 hour work year . 1 production supervisor at $90,000/year d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year e. Depreciation: $25/machine hour f. Utilities: $7/machine hour The company applies overhead on the basis of machine hours. Required: Build the cost formula Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units • Calculate the expected number of machine hours to be used in the year. o Calculate the estimated total manufacturing overhead cost. o Calculate the applied overhead rate per machine hour. o Calculate the applied overhead per unit of output.