Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Conic Ltd is a manufacturing company. The following data is available for product A . Prime costs 9 , 0 0 0 Direct labour costs

Conic Ltd is a manufacturing company. The following data is available for
product A.
Prime costs 9,000
Direct labour costs 6,000
Conversion costs 15,000
Using the information above, calculate the total production costs for product?
XYZ is a manufacturing company. The following data relates to a new
product called Certax.
Selling price 25 per unit
Forecast sales volume 60,000 units
Variable costs 20 per unit
Fixed costs 150,000
Calculate the margin of safety in units?
ABC Chairs is a small manufacturing business which produces wooden
chairs. The business recently received an enquiry from a customer to
provide a quote for a special order to supply 1,400 chairs. The business
charges a mark-up of 25% on all orders.
ABC Chairs allocates all production overheads using direct labour hours.
The annual budgeted production overheads are 48,000. The annual
estimated labour hours are 8,000.
The estimated requirements for this order are as follows:
Direct materials and labour cost 43,000
Direct machine cost 4,000
Direct labour hours 500
Calculate the estimated price notified to the customer for the special order.
Both direct costs and production overheads are relevant to the pricing
decision. No other costs and overheads are relevant?
Milton, a small manufacturer of toys, has produced the following fixed
budget contribution information for March 20X3:
Sales 16,000
Direct Materials (4,000)
Labour (6,000)
Contribution 6,000
The actual output for the month was 20% higher than budgeted. The
budgeted fixed overheads for the month were 3,000.
Calculate the difference in net profit between the flexed budget and the
fixed budget for March 20X3?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John Wild, Ken Shaw, Barbara Chiappett

23rd edition

1259536351, 978-1259536359

More Books

Students also viewed these Accounting questions