Unit selling prices and unit costs

Assignment Help Accounting Basics
Reference no: EM13120115

Kimberton Tool Company manufactures electric carpentry tools. The production department has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and unit costs for three different drill models are as follows:

Home Model Deluxe Model Pro Model

Selling price $68 $75 $90
Direct material 16 20 19
Direct labor ($10 per hour) 10 15 20
Variable overhead 8 12 16
Fixed overhead 16 5 15

Variable overhead is applied on the basis of direct labor dollars, while fixed overhead is applied on the basis of machine hours. There is sufficient demand for production of any model in the product line.


(a) If Kimberton Company has excess machine capacity and can add more labor as needed (i.e., neither machine capacity or labor is a constraint), the excess production capacity should be devoted to producing which proproducts. Support your answer with appropriate data.

(b) If Kimberton Company has excess machine capacity but a limited amount of labor time (300 hours), which product should the excess production capacity be devoted to producing? Support your answer with appropriate data.

Reference no: EM13120115

Examine the balance sheets for the two years

Write an accounting equation, and record the effects of each accounting event under the appropriate headings for each year.  Record the amounts of revenue, expense, and divide

Include appropriate basic eps disclosures

Prepare the lower portion of the 2013 income statement beginning with $925,000 income before income taxes and extraordinary item. Include appropriate basic EPS disclosures.

Transactions pertaining to debt investments

Foren Corporation had the following transactions pertaining to debt investments.an. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $

What proportion drinks no more than

If the top 5% of coffee drinkers are considered heavy coffee drinkers, what is the minimum number of cups consumed by a heavy coffee drinker? Hint: Find the 95th percentile.

Static budget volume per month

Mancini manufactures embroideered jackets. The company prepares flexible budgets and uses standard cost system to control manufacturing costs. The standard unit cost of a ja

What advice would you provide the negotiating parties

What advice would you provide the negotiating parties regarding the issue of considering the Eagles Stadium income statement in their discussions? What authoritative literat

Joint cost allocation

Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. Allocate the $31,680 joint cost to the spreadable butter and the buttermilk u

Examples of statistical sampling

What are some benefits of an auditor using statistical sampling? What are some examples of statistical sampling? Does anyone have any experience they are willing to share wi


Write a Review

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