User Account

All Pages

Evaluate the contribution margin per unit

Assignment Help Managerial Accounting
Reference no: EM13333249

Question 1

Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:

Production Cost Data

Direct materials

$153,000

Direct labor

$110,500

Variable manufacturing overhead

$204,000

Fixed manufacturing overhead

$255,000

Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.

The contribution margin per unit was

Question 2

Sanker Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

 

Work In
Process

Finished
Goods

Cost of
Goods Sold

Total

Direct materials

$2,790

$7,680

$18,240

$28,710

Direct labor

9,700

19,200

 45,600

74,500

Manufacturing
  overhead applied

5,440

8,000

18,560

32,000

Total

$17,930

$34,880

$82,400

$135,210

Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

The journal entry to record the allocation of any underapplied or overapplied overhead for August would include

Reference no: EM13333249

Questions Cloud

Explain acetone platinum catalyst acid catalyst : Identify the reaction conditions required for the dehydration of 2,3-dimethylpentan-2-ol to occur. Select all that apply. Select all that apply. Heat Base catalyst Excess Acetone Platinum catalyst Acid catalyst
Use digital evidence examples to discuss type of evidence : Use digital evidence examples to discuss the type of evidence (as discussed in the attach).
How long does the lighter skater take to reach the edge : Two ice skaters, with masses of 40.0kg and 85.0kg , are at the center of a 60.0m -diameter circular rink. how long does the lighter skater take to reach the edge
The development of quality management models : 1.  Critically appraise the development of quality management models
Evaluate the contribution margin per unit : The journal entry to record the allocation of any underapplied or overapplied overhead for August would include -Evaluate the contribution margin per unit
Determine the magnitude of the force exerted on the electron : An electron of mass 9.11 10-31 kg has an initial speed of 2.80 105 m/s. Determine the magnitude of the force exerted on the electron
Explain what is the pressure within the tank : A steel tank has a volume of 438 L and is filled with 0.885 kg of O2 at 21°C. What is the pressure within the tank?
Explain a refrigerant and aerosol propellant : Freon-12, CF2Cl2, is a refrigerant and aerosol propellant suspected of accelerating the loss of ozone in the upper atmosphere. It is prepared by reacting gaseous carbon tetrachloride
What is the velocity of the rocket when it runs out of fuel : A rocket rises vertically, from rest, with an acceleration of4.0 m/s until it runs out of fuel at an altitude of1300 m. What is the velocity of the rocket when it runs out of fuel

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Old guard-materials budget-reason for ending inventory

Each gallon of Old Guard, a popular aftershave lotion, requires 3 ounces of ocean scent. Budgeted production of Old Guard for the first three quarters of 2013 is:

  Calculate expected profit and rate of return on investment

Calculate the expected profit and rate of return on investment for each division and for the company as a whole in the coming year, if Division B purchases its motors from Division A, and sells its entire output to retailers.

  Determine the breakeven point in units and dollars

Prepare a contribution margin income statement separating all variable and fixed costs into their own categories and determine the breakeven point in units and dollars. Also, determine the number of units and dollars that need to be sold to make a ..

  Should the firm purchase the new equipment

How much value will this new equipment create for the firm and at what discount rate will this project break even, should the firm purchase the new equipment?

  Personal expense budget

George Marcus, a recent college graduate, has been appointed by Taylor Corporation at a salary of $54,000 per year. In anticipation of his salary, George bought a $20,000 new ski boat and will pay for it at a rate of $425 per month

  Question on total fixed cost

Borderbooks Company has two locations, downtown and at a suburban mall. During March, the company reported net income of $271,000 and sales of $1.2 million.

  Managerial economics-pareto efficiency

What is Pareto efficiency? Why do economists use this criterion for comparing alternative economic systems?

  Create journal entries for each transaction

Create journal entries for each transaction. Using the journal entries as a guide, show whether every transaction would be handled as revenue or an expense using both the cash and accrual by completing the table provided.

  Managerial accounting-doubtful accounts

Under what method does the balance in allowance for doubtful accounts have no bearing on the journal adjusting journal entry?

  Problems changing from budget

What are some of the potential problems which might be encountered in changing from a budget to a cost estimation movie making system?

  Reconstructing standard-cost information

Part of your company's accounting database was destroyed when Godzilla attacked the city. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purc..

  Working capital-cash conversion cycle

A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capita..

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