1) X Company incurred the following costs in
2017:
Factory insurance | $5,629 | |
Customer service | 4,766 | |
Advertising costs | 4,594 | |
Factory maintenance | 5,023 | |
Direct labor | 5,972 | |
Direct materials | 4,514 | |
Sales salaries | 5,023 | |
Factory utilities | 5,153 | |
Research & Development | 5,599 | |
Material handling | 4,174 |
What was total overhead in 2017?
2) X Company had the following inventory
account balances in 2017:
|
3) X Company has two production departments, X
and Y. Listed below is budgeted information for the two
departments, and actual information for one of its products,
Product 1:
Department X | All Products | Product 1 |
Overhead | $5,400,000 | - |
Direct labor | $750,000 | $13,440 |
Direct labor hours | 50,000 | 896 |
Machine hours | 110,000 | 1,040 |
Units produced | 55,000 | 650 |
Department Y | ||
Overhead | $1,800,000 | - |
Direct labor | $750,000 | $3,975 |
Direct labor hours | 50,000 | 265 |
Machine hours | 130,000 | 900 |
Units produced | 36,000 | 650 |
Using a plantwide allocation system with direct labor hours as the cost driver, what was the allocation to Product 1?
4) X Company makes two products, A and B, and
uses an activity-based costing overhead allocation system, with
three cost pools and three cost drivers. Budgeted costs and driver
information for 2017 were as follows:
Cost Pool 1 | Cost Pool 2 | Cost Pool 3 | |
Budgeted costs | $113,000 | $53,000 | $31,000 |
Cost Drivers | |||
Product A | 84,000 | 62,000 | 75,000 |
Product B | 63,000 | 54,000 | 47,000 |
What was the allocation to Product B in 2017?
5) X Company manufactures a single product,
Product A, and budgets total manufacturing costs each month. The
accountant provides the following information about its
manufacturing process:
Direct material quantity | 2.6 pounds per unit of Product A | |||
Direct material price | $22.00 per pound | |||
Direct labor time | 1.7 hours per unit of Product A | |||
Direct labor wage rate | $15.90 per hour |
The budgeted monthly overhead cost function is $3,600+$2.20X, where
X is the number of units produced. If X Company expects to produce
940 units of Product A in December, what are budgeted total
manufacturing costs for December?
6) X Company wants to estimate overhead costs
in March, when production is expected to be 1,300 units. To
determine the parameters of its overhead cost function, it used
account analysis with the January cost information below and when
production was was 1,000 units.
Total | Total Variable | |
Utilities | $42,800 | $42,800 |
Maintenance | 57,000 | 30,780 |
Supervision | 23,000 | 0 |
Using the resulting cost function, what is X Company's estimate of total overhead costs in March?
7) X Company has the following data from 2016 and 2017:
2016 | 2017 | |
Total costs | $254,000 | $403,500 |
Units produced | 32,000 | 58,000 |
Expected production in 2018 is 42,400 units. Using the high-low
method with the 2016 and 2017 data to determine the parameters of
the cost function, what are estimated total costs in 2018?
8) In 2018, X Company expects to produce and
sell 70,000 units of its only product for $33.84. The following are
budgeted variable costs per unit:
Direct materials | $4.60 | |
Direct labor | 5.10 | |
Variable overhead | 5.54 | |
Variable selling and administrative | 5.25 | |
Total | 20.49 |
Budgeted fixed overhead for 2018 is $202,300, and budgeted fixed
selling and administrative expenses are $202,300.
What is X Company's budgeted contribution margin rate for 2018?
9) X Company's profit equation next year is expected to be 0.44R-$13,600, where R is total revenue. Assuming a tax rate of 32%, what must next year's revenue be in order for X Company to earn after-tax profits of $23,000?
10) In 2017, X Company had the following selling price and per-unit variable cost information:
Selling price | $188 | ||
Variable manufacuting costs | 97 | ||
Variable selling and administrative costs | 30 |
In 2017, total fixed costs were $632,000.
In 2018, there are only two expected changes. Direct material costs
are expected to decrease by $6 per unit, and fixed selling and
administrative costs are expected to increase by $20,000. What must
unit sales be in order for X Company to break even in 2018?
11) The following information is available for the 23,000 units of X Company's one product sold in 2017:
Selling price | $54.00 |
Variable costs per unit | $16.00 |
Total fixed costs | $805,000 |
In 2018, X Company expects sales to increase to 27,000 units, but it is uncertain what variable costs per unit will be. What must variable costs per unit be in order for X Company to break even in 2018?
12) X Company estimates the following for its three products, A, B, and C, for 2018:
A | B | C | |
Revenue | $65,125 | $25,346 | $33,156 |
Total variable costs | 40,438 | 20,367 | 16,632 |
Fixed costs in 2018 are expected to be $19,200. What is the
expected weighted average contribution margin rate in 2018?
1)
Calculation of Total Overhead in 2017 |
||
Particulars |
Amount($) |
Amount($) |
Manufacturing Overhead : |
||
Material Handling |
4174 |
|
Factory Utilities |
5153 |
|
Factory Insurance |
5629 |
|
Factory Maintenance |
5023 |
19979 |
Administrative Overhead : |
||
Research and Development |
5599 |
5599 |
Selling and Distribution Overhead : |
||
Customer Service |
4766 |
|
Advertising Costs |
4594 |
|
Sales Salaries |
5023 |
14383 |
Total Overhead |
39961 |
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