Question
Delano Corp operates a job order costing system. Delano applies manufacturing overhead to job orders at a pre-determined overhead rate of $ 20 per direct
Delano Corp operates a job order costing system.
Delano applies manufacturing overhead to job orders at a pre-determined overhead rate of $20 per direct labor hour (DLH)incurred. In the current year Delano incurred actual 31,000 DLH's.
Delano provides you with the following sale and cost information:
Sales$2,300,000
Raw Materials
Beginning inventory$110,000
Purchases of Raw Materials$420,000
Work-in-Progress
Beginning inventory $150,000
Direct Materials transferred from Raw Materials $250,000
Ending Inventory $630,000
Direct Labor Costs Incurred $90,000
Finished Goods
Beginning Inventory $260,000
Ending Inventory $360,000
Manufacturing Overhead
Indirect Materials transferred from Raw Materials$60,000
Factory Utility Costs$660,000
Estimated Manufacturing Overhead Costs$620,000*31,000 DLH's *$20/DLHWhat is Delano's end of year balance in their RAW Materials account?Select one:a. $280,000b. $220,000c. $170,000d. $530,000e. None of the other answers are correct
Alaska Company provides you the recent year financial data:
Sales $20,000,000
Cost of Goods Sold (8,000,000)
Gross Profit 12,000,000
Operating Expenses(8,000,000)
Net Operating Income $4,000,000
Average Operating Assets: $2,000,000Provide Alaska Co's TURNOVER amount.Select one:a. 10b. 6c. None of the other answers are correct d. 5e. 2
Steamboat manufactures part T-2 each year for use in its production line. In the current year they manufactured 40,000 units. At this level of activity the cost per unit for part T-2 is as follows:
Direct Materials $3.60 per unit
Direct Labor $10.00 per unit
Variable Manufacturing OH$6.40 per unit
Fixed Manufacturing OH $5.00 per unit
Total Cost Per Unit $25.00 per unit
An outside supplier has offered to supply Steamboat 40,000 units of part T-2 for $15 per unitIf Steamboat accepts this offer, they will discontinue manufacturing part T-2 and rather purchase it from the outside supplier. If this occurs, the Fixed Manufacturing Overhead Cost will be reduced to $2.00/unit (i.e. $3.00/unit of Fixed Manufacturing Cost will go away).Assuming that Steamboat accepts the suppliers offer, what is the new cost per unit for part T-2 assuming an activity level of 40,000 units?Select one:a. $32.00 per unitb. None of the other answers are correct c. $17.00 per unitd. $22.00 per unite. $15.00 per unit
Shake Shack provides you the following information for 2017 and 2018:
2018
Sales $30,000,000
Cost of Goods Sold (10,000,000)
Operating Expenses (2,000,000)
SG&A Expenses (4,000,000)
Net Operating Income $14,000,000
12/31/201812/31/2017
Operating Assets$120,000,000$80,000,000
Investment Assets$ 40,000,000$40,000,000
Total Assets$160,000,000$120,000,000
Minimum Required Rate of Return on Projects: 10%Provide the Return on Investment (ROI) Percentage. Round to nearest hundredth.Select one:a. 10.00%b. 14.00c. None of the other answers are correct d. 4.00%e. 11.67%
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