Reference no: EM132500913
Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK. Its product line consists of trousers (29%), skirts (27%), dresses (11%), and other (33%). Fleet Street has been using a volume-based rate to assign overhead to each product; the rate it uses is £2.20 per unit produced.
The results for the trousers line, using the volume-based approach, are as follows:
Number of units produced 14,000
Price (all figures in £) 24.42
Total revenue 341,880
Direct materials 56,200
Direct labor 187,600
Overhead (volume-based) 30,800
Total product cost 274,600
Nonmanufacturing expenses 51,400
Total cost 326,000
Profit margin for trousers 15,880
Recently, Fleet Street conducted a further analysis of the trousers line of product, using ABC. In the study, eight activities were identified, and direct labor was assigned to the activities.
The total conversion cost (labor and overhead) for the eight activities, after allocation to the trousers line, is as follows:
Pattern cutting£33,060
Grading 28,200
Lay planning 27,500
Sewing 31,600
Finishing 20,900
Inspection 9,300
Boxing up 5,100
Storage 10,200
Required:
Question 1: Determine the profit margin for trousers using ABC.
|
AFE5004-B Management Accounting Assignment
: AFE5004-B Management Accounting Assignment Help and Solution - University of Bradford, England, UK. Calculate the manufacturing overhead absorption rate
|
|
What is the customer margin
: What is the customer margin? Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider
|
|
Calculate the npv of this investment opportunity
: Calculate the NPV of this investment opportunity. Should the company make the investment?
|
|
Compute the total manufacturing costs and the unit costs
: Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost.
|
|
Find the profit margin for trousers using abc
: Find the profit margin for trousers using ABC. Fleet Street Inc., a manufacturer of high-fashion clothing for women, is located in South London in the UK
|
|
Find what would be the amount of loss per unit
: Find What would be the amount of loss per unit. What is the amount of loss (profit) per unit at the $671.88 selling price per unit for units sold to SC?
|
|
What are some ways to generate revenues in convention
: What are some ways to generate revenues in convention centers during months where demand is low? and also ways to cut its costs
|
|
Prepare the closing entries for the danos company
: Prepare the closing entries for the Danos Company's on December 31, 2019. Post the closing entries to the owner's capital account.
|
|
Prepare the closing entries for davis company on december
: Prepare the closing entries for Davis Company On December 31. Record entry to transfer net income or net loss from income summary to capital.
|