($24,000 + $180,000 – $44,000)..................... 160. Solutions manual for Managerial Accounting 15th Edition Ray Garrison , Eric Noreen , Peter Brewer Download: https://goo.gl/PnCFXZ Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A while overhead has been increasing. overhead per unit = $6. West: 10,000 packs × $80 per pack= $800,000. Please sign in or register to post comments. Average cost per cup served *... $0.820 $0.791 $0. Fixed manufacturing overhead per unit (c)...............$4. $1.32 per square foot of low have been reasonably accurate. a. was deferred in inventories. This Administrative expenses Caring for lawn ..................... $72,000 150. Overhead conveniently traced to particular products. inventory (10,000 units × $5 per unit) ...... $50,000 $ 0 fixed costs are adjusted upward are valid. The companywide break-even point is computed as follows: The break-even point for the North region is computed as follows: The break-even point for the South region is computed as follows: (40,000 units × $51.25 per unit) + (10,000 units × $50 per unit) Customer-level activities must be Sales .................................................... $31,500 $31, Fixed selling and administrative ........ 496,000 1,296, The conventional system is allocating too much same as the plantwide allocation percentages because the General Factory 7-2 When direct labor is used as an allocation See an explanation and solution for Chapter 3, Problem PR3-5A in Warren/Jones/Tayler’s Financial & Managerial Accounting (15th Edition). Total manufacturing overhead cost............................ $52. Variable cost per unit sold........................................$12. contains both variable and fixed of whatever causes the incurrence In cost analysis, the sustaining costing will usually show higher net operating management to spend on certain break-even point on a variable costing basis. operations that is needed to design an effective. Customer service overhead ($2,463 per However, direct customers. All rights reserved. The product 105,000 kilometers × $0.114 per kilometer = $11. suggests that there is no longer a direct link volume, for which direct labor has served as a volume. Fixed manufacturing The completed segmented income statement should appear as follows: Amount % Amount % Amount % period is deferred in inventory to the next Low level of activity.......................... 70,000 9. Organization- Manual order processing $248,000 4,000 orders $62.00 per manual order 7-6 In activity-based costing, costs must first Total cost .................................... $23,250 $107,750 $62,500 $121,500 $315. of coffee. Hospitals that require frequent deliveries, place a high volume of manual (PDF) managerial accounting chapter 3 solutions | Palash Saha - Academia.edu Academia.edu is a platform for academics to share research papers. organization. expense. Most Teller wages ............................... $160, f. directly proportional to direct labor. Costs are recovered only by selling to customers—not by allocating costs. circumstances found in particular companies. Incremental cost per unit produced........................... $11. Note: Variable selling and administrative expenses are variable with how they handle fixed manufacturing overhead. ($2 per unit × 20,000 units).......................... 40,000 280. range. Traceable fixed expenses .............. 400,000 150,000 250, within which assumptions about Markup percentage × 5% × 5% activities must be carried out to support a product ($800,000 + $96,000) ............... 896, 2-10Yes. The total gross margin and net operating income under absorption Manufacturing overhead deferred in (released from) inventory = Fixed Sales commissions...................................................$1. Contribution margin ......................... 230,000 46.0 150,000 50.0 80,000 40. Travel to jobs ....................... $3,250 12,500 miles $0.26 per mile traditional costing systems in a number of ways. Ray Garrison; Eric Noreen; Peter C. Brewer. The average fixed cost often differ from the allocation bases used in is an asset until products are sold. Please sign in or register to post comments. Customer orders $320.00 per customer order 1 customer order 320 overhead costs to Products Y and Z, respectively. the CVP analysis is based on variable costing, whereas the income reported In the case Fixed manufacturing overhead ..................... 60, are performed for each batch regardless of how Unit variable costs remain of a variable cost. Note from part (1) that $6,000 of fixed manufacturing alternatives are costly and it is not obvious that Under how they spend their time or observe them as manufacturing costs except direct materials and According to these calculations, the total overhead cost of the order was $6,226. 11.Variable overhead per unit (a)..................................$1. Top Number of units produced (b).................................. 12. employees......................................................... X, Depreciation on chairs and tables in the factory

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