Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please slove this question Header Assume that during the past month, Fineway produced 10,000 cartons of highlighters. Highlighters has a translucent barrel and cap with

Please slove this question

image text in transcribed
Header Assume that during the past month, Fineway produced 10,000 cartons of highlighters. Highlighters has a translucent barrel and cap with a visible ink supply for see through colour. The special fluorescent ink is fade and water resistance. Each carton contains 100 boxes of markers and each box contains five markers. The markers come in boxes of one of five fluorescent colours- orange, blue, yellow, green and pink and in a five colour set. The standard cost for one carton of 500 markers is as follows: Standard Manufacturing Cost Elements Quantity Price Cost Direct materials I Tips (boxes of 500 500 Translucent barrels and caps (boxes of 500 X $0.03 $15.00 500 Fluorescent Ink (5 litre container) X $0.09 $45.00 5litre $32.00 X $6.40 Total direct material = $92.00 Direct labour Overhead 0.25 hours X $9.00 $2.25 Total cost of production 0.25 hours X $48.00 = $12.00 = $106.25 During the month, the following transactions occurred in manufacturing 10,000 cartons of highlighters: 1) Purchased 10,000 boxes of tips for $148,000, ($14.80 per 500 tips), Purchased 10,200 boxes of translucent barrels and caps for $453,900 ( $44.50 per 500 barrels and caps) and purchased 9,900 containers of fluorescent ink for $328,185 ( $33.15 per five litre container). 2) All materials purchased during the period were used to make markers during the period. ) A total of 2,300 direct labour hours were worked at a total labour cost of $20, 240 ( an average hourly rate of $8.80) 4) The variable manufacturing overhead incurred was $34,600 and the fixed overhead incurred was $84,000 5) The manufacturing overhead rate of $48.00 is based on a normal capacity of 2,600 direct labour hours. The total budget at this capacity is $83,980 fixed and $40,820 variable. Required; a) Calculate the total actual cost incurred b) Calculate the total standard costs for the actual quantity produced

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Lawrence A. Tomassini

4th Edition

0072994029, 9780072994025

More Books

Students also viewed these Accounting questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago