Question

Bellfont Company produces door stoppers. August production costs are below: Door stoppers 77,000 Direct material (variable)...

Bellfont Company produces door stoppers. August production costs are below:

Door stoppers 77,000

Direct material (variable) $20,000

Direct labor (variable) 40,000

Supplies (variable) 20,000

Supervision (fixed) 29,900

Depreciation (fixed) 22,400

Other (fixed) 5,800

In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for Septemeber? Round to two decimal places

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The production cost is computed as shown below:

= [ [ Direct material + Direct labour + Supplies (variable) ] / 77,000 ] x 100,000

= [ [ $ 20,000 + $ 40,000 + $ 20,000 ] / 77,000 ] x 100,000

= $ 103,896.1039

So, the production cost per door stopper is computed as follows:

= $ 103,896.1039 + Supervision (Fixed) + Depreciation (Fixed) + Others (Fixed)

= ($ 103,896.1039 + $ 29,900 + $ 22,400 + $ 5,800) / 100,000

= $ 161,996.1039 / 100,000

= $ 1.62 Approximately

Feel free to ask in case of any query relating to this question

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bellfont Company produces door stoppers. August production costs are below: Door Stoppers produced                    76,000 Direct material (variable)...
Bellfont Company produces door stoppers. August production costs are below: Door Stoppers produced                    76,000 Direct material (variable) $20,000 Direct labor (variable)                                               40,000 Supplies (variable)                                                      20,000 Supervision (fixed)                                                      28,500 Depreciation (fixed)                                                    23,200 Other (fixed)    5,900 In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for September? Round to two decimal places.
Taany Company produces chairs. Standard costs for one unit of production are as follows: Direct material...
Taany Company produces chairs. Standard costs for one unit of production are as follows: Direct material 4 pounds @ $5.00 Direct labor 1 hour @ $10.00 Each unit needs 0.50 hour Variable overhead 1 DLH @ $6.00 Production in units 3,000 Material purchased in pounds 11,200 @ $4.80 Material used in pounds 12,200 Direct labor worked in machine hours 1,450 @ $10.10 Actual variable overhead incurred $9,100.00 Find Direct material price variance a. $2,240 b. ($2,240) c. $2,040 d. ($2,040)...
Pets Plus Company has the following budgeted variable costs per unit produced: Direct Materials $8.00 Direct...
Pets Plus Company has the following budgeted variable costs per unit produced: Direct Materials $8.00 Direct Labor $1.77 Variable Overhead:       Supplies $0.41       Maintenance $0.33       Power $0.26 Budgeted fixed overhead costs per month include supervision of $85,000, depreciation of $82,000, and other overhead of $256,000. Required: a. Prepare a flexible budget for all costs of production for the following levels of production: 130,000 units, 145,000 units, and 150,000 units. (5 points)
Grundy company expects to produce 1,200,00 units of product xx in 2017. Monthly production is expected...
Grundy company expects to produce 1,200,00 units of product xx in 2017. Monthly production is expected to range from 80,000 to 120,000 units. budgets variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. budgeted fixed manufacturing cost per unit for depreciation are $2 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments. This is the question form the book can you please answer?
Jax's production costs - Direct Labor                $           5.00 per unit        &nbs
Jax's production costs - Direct Labor                $           5.00 per unit              15 minutes of labor Raw Materials             $         12.00 per unit              2 pounds of raw material Variable Overhead $ 2.50 per unit                50% of direct labor cost Fixed Overhead $ 100,000 1. Assume that the company is planning on producing 100,000 units of Jax next month. Prepare the production cost budget for this product. 2. The company produced only 98,000 units of ABC and incurred the following actual costs: Direct labor...
Lakeside Inc. produces a product that currently sells for $66.60 per unit. Current production costs per...
Lakeside Inc. produces a product that currently sells for $66.60 per unit. Current production costs per unit include direct materials, $27; direct labor, $29; variable overhead, $13.50; and fixed overhead, $13.50. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit. Required: a. What would be the incremental profit or loss if Lakeside could sell the refined version of its product...
The following manufacturing costs were incurred by the Walmart Company in 2019: Direct Materials $112,500 Direct...
The following manufacturing costs were incurred by the Walmart Company in 2019: Direct Materials $112,500 Direct Labor $175,000 Manufacturing overhead $235,000 These costs were incurred to produce 25,000 units of product. Variable manufacturing overhead was 80% of the direct materials cost. In 2020, the direct material and variable overhead costs per unit will increase by 15%, but the direct labor costs per unit are not expected to change. Fixed manufacturing costs are expected to increase by 7.5%. The company is...
Lakeside Inc. produces a product that currently sells for $72.00 per unit. Current production costs per...
Lakeside Inc. produces a product that currently sells for $72.00 per unit. Current production costs per unit include direct materials, $27; direct labor, $29; variable overhead, $13.50; and fixed overhead, $13.50. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit. Lakeside has received an offer from a nonprofit organization to buy 9,700 units at $70.30 per unit. Lakeside currently has...
A. Direct Labor Budget Evans Company produces asphalt roofing materials. The production budget in bundles for...
A. Direct Labor Budget Evans Company produces asphalt roofing materials. The production budget in bundles for Evans' most popular weight of asphalt shingle is shown for the following months: Units March 4,400 April 14,300 May 15,840 June 18,700 Each bundle produced requires (on average) 0.40 direct labor hours. The average cost of direct labor is $22 per hour. Required: Prepare a direct labor budget for March, April, and May, showing the hours needed and the direct labor cost for each...
Gundy Company expects to produce 1,260,000 units of Product XX in 2017. Monthly production is expected...
Gundy Company expects to produce 1,260,000 units of Product XX in 2017. Monthly production is expected to range from 85,600 to 124,800 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2. Prepare a flexible manufacturing budget for the relevant range value using 19,600 unit increments. (List variable costs before fixed costs.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT