User Account

All Pages

Calculate the actual cost per unit in april

Assignment Help Managerial Accounting
Reference no: EM13935154

Santiago's Salsa is in the process of preparing a production cost budget for May. Actual costs in April were:
Santiago's Salsa
Production Costs
April 2011
25,000
Production Jars of Salsa
Ingredient cost (variable)................$20,000
Labor cost (variable)........$12,000
Rent (fïxed)............$5,000
Depreciation (fïxed)........$6,000
Other (fïxed)..........$1,000
Total.............. $44,000

Required:

a. Using this information, prepare a budget for May. Assume that production will increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

b. Does the budget suggest that additional workers are needed? Suppose the wage rate is $20 per hour. How many additional labor hours are needed in May? What would happen if management did not anticipate the need for additional labor in May?

c. Calculate the actual cost per unit in April and the budgeted cost per unit in May. Explain why the cost per unit is expected to decrease.

Reference no: EM13935154

Questions Cloud

What is the incremental cost associated : What is the incremental cost associated with producing an extra 50,000 jars of salsa?
Assuming that relative purchasing power parity exists : Currently, you can exchange 100 for $126.48. The inflation rate in Euroland is expected to be 2.8% as compared to 3.4% in the U.S. Assuming that relative purchasing power parity exists, the exchange rate 2 years from now should be:
What is the present value dollars for all cash flows : A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY 1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. What is..
What direct labour cost should have been incurred to make : According to the standards, what direct labour cost should have been incurred to make 19,400 units of the Jogging Mate? By how much does this differ from the cost that was incurred? Break down the difference in cost from (1) above into a labour rate ..
Calculate the actual cost per unit in april : Calculate the actual cost per unit in April and the budgeted cost per unit in May. Explain why the cost per unit is expected to decrease.
Issue floating-rate debt at libor : Carter Enterprises can issue floating-rate debt at LIBOR +1 percent or fixed-rate debt at 9.00%. Brence Manufacturing can issue floating-rate debt at LIBOR +2.4% or fixed-rate debt at 12%. What is the net payment for Brence if they engage in the swap..
What is the expected exchange rate five years : The spot rate on the Canadian dollar is 1.24. Interest rates in Canada are expected to average 2.8% while they are anticipated to be 3.1% in the U.S. What is the expected exchange rate five years from now?
Explain how the competitive labor market functioned : Explain how the competitive labor market functioned before the buyout of the independent farms. How was the wage rate and quantity of workers employed in the market determined?
Coupon bonds on the market-current bond price : Aloha Inc. has 5.5 percent coupon bonds on the market that have 10 years left to maturity. If the YTM on these bonds is 6.42 percent, what is the current bond price?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Evaluating proposals with help of cvp analysis

Phonetronix is the small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They've three different proposals to evaluate.

  Sharp edges makes specialty skates for the ice skating

Sharp Edges makes specialty skates for the ice skating circuit. On December 31, 2012, the company had

  Flexibility to change budgeted costs

We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change.' Does a flexible budget serve this purpose? Explain.

  What might motivate management to overstate fixed assets

What might motivate management to overstate fixed assets? What other factors should the auditor consider when assessing fraud risk related to long-lived assets?

  Choose an item that you would like to manufacture you do

choose an item that you would like to manufacture. you do not actually need to manufacture something but will proceed

  Required1 using the indirect method prepare a statement of

required1. using the indirect method prepare a statement of cash flows for alvin arts inc.2. why did alvin arts

  Stan sewell paid 50000 for a franchise that entitled him to

stan sewell paid 50000 for a franchise that entitled him to market software programs in the countries of the european

  Prepare the balance sheet of bird corporation

Using the available data and information, prepare the balance sheet of Bird Corporation as of January 1, Year 1. T-accounts can be helpful in reconstructing the individual accounts.

  The following refers to units processed in sunfllower

Compute the total equivalent units of production with respect to labor for March using the weighted average inventory method.

  Recast the full costing income statement for 2014 into a

a.recast the full costing income statement for 2014 into a variable costing format. does it appear as sanjay patel

  Question on environmental management system

What are internal and external environmental factors that affect an environmental management system (EMS)? Which factors create the greatest challenge in planning an EMS? How could an EMS benefit healthcare organization?

  Explain the shapes of the aggregate demand curve

Explain the shapes of the aggregate demand curve and the aggregate supply curve, and how they interact to determine real GDP and the price level for a nation

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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