Daguio corporation uses direct labor-hours in its

Reference no: EM13571704

1. The following costs were incurred in September:

Direct materials	$40,100
Direct labor	$29,700
Manufacturing overhead	$21,200
Selling expenses	$25,600
Administrative expenses	$32,100

Conversion costs during the month totaled:

	$148,700
	$69,800
	$50,900
	$61,300

2.The following costs were incurred in September:

Direct materials	$46,600
Direct labor	$23,300
Manufacturing overhead	$24,800
Selling expenses	$19,600
Administrative expenses	$36,700

Prime costs during the month totaled:

$69,900

$48,100

$151,000

$94,700

In September direct labor was 45% of conversion cost. If the manufacturing overhead for the month was $80,300 and the direct materials cost was $22,400, the direct labor cost was:

	$35,033
	$65,700
	$120,700
	$51,700

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,780 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

Product

Period

$3,780

$3,024

$756

$2,016

$504

$1,008

$252

Ladanza Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $154.00 per unit.

Sales volume (units)	14,300	15,880
Cost of sales	$1,144,000	$1,270,400
Selling and administrative costs	$655,000	$683,440

The best estimate of the total contribution margin when 15,540 units are sold is:

	$248,970
	$984,270
	$336,170
	$870,240

Carbaugh Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production volume	4,400	units	5,400	units
Direct materials	$77.90	per unit	$77.90	per unit
Direct labor	$50.20	per unit	$50.20	per unit
Manufacturing overhead	$74.30	per unit	$68.30	per unit

The best estimate of the total cost to manufacture 5,100 units is closest to: (Do not round intermediate calculations.)

	$1,016,265
	$1,009,560
	$1,027,440
	$978,270

The following data pertains to activity and the cost of cleaning and maintenance for two recent months:

	Month 1		Month 2
Production volume	2,400	units	3,100	units
Cleaning and maintenance costs	$1,000		$1,210

The best estimate of the total month 1 variable cost for cleaning and maintenance is: (Do not round intermediate calculations.)

	$220
	$420
	$720
	$20

At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $708,900 and its total fixed production engineering cost is $168,210. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)

	$101.95
	$101.41
	$102.48
	$102.30

Supply costs at Lattea Corporation's chain of gyms are listed below:

	Client-Visits	Supply Cost
March	11,660	$28,574
April	11,456	$28,408
May	11,988	$28,832
June	13,300	$28,918
July	11,720	$28,635
August	11,206	$28,234
September	12,000	$28,833
October	11,691	$28,591
November	11,839	$28,716

Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.)

	$2.02 per client-visit; $28,636 per month
	$.91 per client-visit; $17,471 per month
	$0.37 per client-visit; $24,024 per month
	$0.33 per client-visit; $24,529 per month

10.

Buckeye Company has provided the following data for maintenance cost:

	Prior Year	Current Year
Machine hours	14,100	17,000
Maintenance cost	$28,200	$31,970

The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.)

	$9,870 per year plus $1.30 per machine hour
	$28,200 per year plus $1.30 per machine hour
	$9,870 per year plus $.769 per machine hour
	$22,100 per year plus $.769 per machine hour

11.

Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume	13,700	units	15,000	units
Direct materials	$911,050		$997,500
Direct labor	$239,750		$262,500
Manufacturing overhead	$1,008,400		$1,025,820

The best estimate of the total monthly fixed manufacturing cost is: (Do not round intermediate calculations.)

	$832,320
	$827,820
	$821,820
	$824,820

12.

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales	$447,000
Cost of goods sold (all variable)	$170,500
Total variable selling expense	$ 20,100
Total fixed selling expense	$ 21,600
Total variable administrative expense	$ 8,500
Total fixed administrative expense	$ 31,300

The gross margin for July is:

	$195,000
	$247,900
	$394,100
	$276,500

13.

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales	$433,000
Cost of goods sold (all variable)	$174,800
Total variable selling expense	$ 25,600
Total fixed selling expense	$ 15,100
Total variable administrative expense	$ 14,800
Total fixed administrative expense	$ 31,400

The contribution margin for July is:

	$171,300
	$386,500
	$217,800
	$258,200

14.

Salvadore Inc., a local retailer, has provided the following data for the month of September:

Merchandise inventory, beginning balance	$ 45,000
Merchandise inventory, ending balance	$ 45,600
Sales	$263,500
Purchases of merchandise inventory	$135,800
Selling expense	$ 19,700
Administrative expense	$ 60,900

The net operating income for September was:

	$127,700
	$128,700
	$49,900
	$47,700

15.

Lettman Corporation has provided the following partial listing of costs incurred during November:


Marketing salaries	$	47,600
Property taxes, factory	$	14,600
Administrative travel	$	104,500
Sales commissions	$	55,300
Indirect labor	$	42,000
Direct materials	$	167,200
Advertising	$	145,300
Depreciation of production equipment	$	42,000
Direct labor	$	95,700

Required:

a.	What is the total amount of product cost listed above? (Omit the "$" sign in your response.)

Total product cost

b.	What is the total amount of period cost listed above? (Omit the "$" sign in your response.)

Total period cost

16.

Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $195,200. At the end of the year, actual direct labor-hours for the year were 16,500 hours, manufacturing overhead for the year was underapplied by $12,000, and the actual manufacturing overhead was $190,200. The predetermined overhead rate for the year must have been:

	$10.80 per direct labor-hour
	$11.74 per direct labor-hour
	$11.46 per direct labor-hour
	$9.93 per direct labor-hour

Reference no: EM13571704

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