. Vend-o-licious makes candy bars for vending machines and sells them to vendors in cases of 30 bars. Although Vend-o-licious makes a variety of candy, the cost differences are insignificant, and the cases all sell for the same price. Vend-o-licious has a total capital investment of $13,000,000. It expects to produce and sell 500,000 cases…
Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2020. Activity Cost Driver Quantity of Cost Driver Cost per Unit of Cost Driver 1. Placing and paying for orders of marble tiles…
0. The San Carlos Company is an electronics business with eight product lines. Income data for one of the products (XT-107) for June 2020 are as follows: Revenues, 200,000 units at average price of $100 each $20,000,000 Variable costs Direct materials at $35 per unit $7,000,000 Direct manufacturing labor at $10 per unit 2,000,000 Variable…
The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021. Current costs in 2020 Expected costs in 2021 Variable manufacturing costs Direct material…
The Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month. Current production and sales are 7,500 medals per month. The company normally charges $150 per medal. Cost information for the current activity level is as follows: Variable costs that…
Choose the best answer. a) The Woody Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $4.50 a pair, and allocated fixed manufacturing cost is $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20,000 pairs of slippers at $6 a pair. Woody…
Grunewald Company manufactures a professional grade vacuum cleaner. It began operations in 2020. For 2020, Grunewald budgeted to produce and sell 20,000 units. Actual data of 2020 are given as follows: Units produced 18,000 Units sold 17,500 Selling price $425 Variable costs: Manufacturing cost per unit produced Direct materials $30 Direct manufacturing labor 25 Manufacturing…
The Goran Gifts Company, a maker of novelties, needs your help immediately. The company accountant resigned without leaving adequate records or explanations for the data collected. In reviewing the records for one product line, you find the following information for last month: Materials purchased 20,000 units @ $.60 each Materials used 15,000 units Direct labor…
The following information is available for 2020 for Riley Products: Revenue (200,000 units) $2,100,000 Manufacturing costs: Materials 300,000 Variable overhead cash costs 200,000 Fixed overhead cash costs 150,000 Depreciation 300,000 Marketing and administrative costs: Variable Marketing costs 250,000 Marketing depreciation 100,000 Administrative cash costs 200,000 Administrative depreciation 50,000 Total costs $1,550,000 Operating profits $ 550,000…
Meyers Inc. produces an oak rocking chair that is designed to ease back problems. The chairs sell for $350 each. The results of last year’s operations are as follows: Units in beginning inventory. 0 Units produced during the year. 35,000 Units sold during the year. 30,000 Units left in ending inventory. 5,000 Variable manufacturing costs…
