Provide an estimate for total production cost for next month

Assignment Help Accounting Basics
Reference no: EM133175477

Question - Kilda Enterprises produces parts for the electronics industry. The production manager and cost analyst reviewed the accounts for the previous month and have provided an estimated breakdown of the fixed and variable portions of manufacturing overhead.

 

Fixed

Variable

Total

Indirect materials

$4,000

$9,000

$13,000

Indirect labor

2,500

16,500

19,000

Supervision

10,000

3,500

13,500

Depreciation

37,000

5,000

42,000

Maintenance

17,000

22,000

39,000

Total

$70,500

$56,000

$126,500

Direct materials for the month amounted to $102,500. Direct labor for the month was $197,500. During the month, 12,500 units were produced.

Required -

a. No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost for next month.

b. Determine the cost per unit of production for the previous month and the next month.

Reference no: EM133175477

Questions Cloud

What is the total profit on food and beverage : A hotel's food department statement shows the following: Food revenue $400,000. What is the total profit on food and beverage
Design diversity scorecard : you will design a diversity scorecard. The diversity scorecard enables an organization to measure the success of its D&I initiatives
What is the initial investment in the product : The product requires an immediate investment of $53,000 in plant and equipment. What is the initial investment in the product? Remember working capital
Diversity through lenses of the natural : You will analyze your issue or event in diversity through the lenses of the natural and applied sciences and the social sciences.
Provide an estimate for total production cost for next month : No changes are expected in these cost relations next month. The firm has budgeted production of 16,250 units. Provide an estimate for total production cost
Interpersonal communication : Discuss each of the seven family life cycles from the textbook. How important is each stage?
Prepare the cash flows from operating activities : Prepare the cash flows from operating activities section of Mansfield's statement of cash flows using the indirect method
Define what value means from a marketing concept : After completing the weekly readings, define what value means from a marketing concept. Also identify a service firm that provides a value product and also iden
What is the labor efficiency variance : The company produced 15,000 units of finished goods during the period. The standard labor rate per hour is $17.00. What is the labor efficiency variance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd