Compute the total direct cost and the direct cost per unit

Assignment Help Cost Accounting
Reference no: EM13890253

Zunz Company, a producer of wooden toys, is about to adopt a lean operating envi- ronment. In anticipation of the change, Zunz's controller prepared the following list of costs for December:

Wood

$1,200

Insurance-plant

$324

Bolts

32

President's salary

4,000

Small tools

54

Engineering labor

2,700

Depreciation-plant

450

Utilities

1,250

Depreciation-machinery

275

Building occupancy

1,740

Direct labor

2,675

Supervision

2,686

Indirect labor

890

Operating supplies

254

Purchased parts

58

Repairs and Maintenance

198

Materials handling

74

Employee benefits

2,654

Required:

1. Identify each cost as direct or indirect, assuming that it was incurred in a traditional manufacturing setting.

2. Identify each cost as direct or indirect, assuming that it was incurred in a lean oper- ating environment.

3. Assume that the costs incurred in the lean operating environment are for a work cell that completed 1,250 toy cars in December. Compute the total direct cost and the direct cost per unit for the cars produced.

Reference no: EM13890253

Questions Cloud

What is the total cost of goods sold for the month : Using T accounts, show the cost flows through a backflush costing system. Using T accounts, show the cost flows through a traditional costing system. What is the total cost of goods sold for the month?
Long term or short term credit riskier : COLLAPSE From the standpoint of the borrower; is long term or short term credit riskier? Would it ever make sense to borrow on a short term basis if short term rates were above long term rates?
Cash liquidity to fund any margin calls : Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3 months time. Suppose each orange juice futures contract is for 15,000 pounds of orange juice, and the current futures pri..
What are the potential benefits of applying cvp analysis : What are the potential benefits of applying CVP analysis to business decision making?
Compute the total direct cost and the direct cost per unit : Assume that the costs incurred in the lean operating environment are for a work cell that completed 1,250 toy cars in December. Compute the total direct cost and the direct cost per unit for the cars produced.
What is the primary competitive forces impacting u.s. steel : What is the primary competitive forces impacting U.S. steel producers?
Create and configure interface vlan1 : From the given information, you are required to make a functional network. In Springfield we have a router and four switches connected as daisy chain topology. Configure trunking on all switches, Configure default gateway, Create and configure int..
Euro dollar futures price for a contract maturing : The 3 month euro dollar futures price for a contract maturing in 6 years is quoted as 95.20. The standard deviation of the change in the short-term interest rate in 1 year is 1.1%. Estimate the forward LIBOR interest rate for the period between 6.00 ..
What are the advantages of a data warehouse? : What are the advantages of a data warehouse?

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute the variable and fixed cost elements

Compute the variable and fixed cost elements using the high-low method, estimate the total cost if the company produces 8,500 units.

  Set up t-accounts with the proper account balances

Set up T-accounts with the proper account balances at April 30, 2003, and post the entries to the T-accounts.

  Prepare the journal entries for jaycie phelps

Prepare the journal entries for Jaycie Phelps Inc. for 2008 and 2009, assuming that Phelps cannot exercise significant influence over Kulikowski.

  Identify the benefits and the costs of conducting business

Identify the benefits and the costs of conducting business in an ethical way. Use an example from the video to emphasize a point.

  The general manager of qantas had two concerns the companys

the general manager of qantas had two concerns the companys worsening cash position 3000 cash and no bank loan at the

  Q1 a you have been approached by a robin hood a client law

q1 a you have been approached by a robin hood a client law firm who employs around 80 staff and as a result of a

  Compute the following prime cost

Compute the following: (a)prime cost, (b)conversion cost, (c) direct cost, (d)indirect cost, (e) product cost, (f)period expense, (g) variable cost, and (h)fixed cost.

  1 what are the organisational ethical leadership problems

1 what are the organisational ethical leadership problems that resulted in columbiahcas misconduct?2 discuss

  Problem on transactions of yosuke corporation

Prepare necessary adjusting entries at December 31 to record amortization required by the events above. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.

  Problem caused by each control weakness

Identify the missing internal control characteristic in each situation and identify the possible problem caused by each control weakness.

  Recognise a value determined by valyou

Discuss, with computations, how the above transactions should be accounted for in the financial statements of the Camel Telecom Group under IFRSs for the year ended 30 June 20X8.

  Prepare an income statement for each year based on full cost

Prepare the following, using a spreadsheet. An income statement for each year based on full costing and An income statement for each year based on variable costing.

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