Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

SoWhat Limited produces only one product. In 2 0 X 0 it produced 1 2 , 7 6 0 units of it , using the

image text in transcribed
SoWhat Limited produces only one product. In 20X0 it produced
12,760 units of it, using the following resources whose consumption in physical terms was measured objectively enough:
Raw material "A"181,702 grams
Raw material "B"1,097,360 centiliters
Outwork 574,200 minutes
Direct Labor 1,148,400 minutes
The price of the first three resources is as follows:
Raw material "A"2,500/kg (please note 1 kg =1,000 grams)
Raw material "B"35/liter (please note 1 liter =100 centiliters)
Outwork 22/hour (please note 1 hour =60 minutes)
As far as direct labor is concerned, SoWhat Limited employs 15 employees who are available to work an average of 7.5 per day for 220 workable days per year. The total annual cost of this resource is: 544,500.
Overhead costs are added to the direct cost on the basis of a predetermined cost rate constructed by comparing the Fixed Manufacturing Overhead Costs for 20X0(equal to 37.131,60) to the direct labor hours employed in the same year.
In 20X1, the company plans to produce 14,500 units of the product and sell 13,700 units at an average unit price of 350.
Using the above information appropriately, determine:
1. The partial operational productivity of Resource A
2. The technical coefficient of Resource B
3. The variable cost per unit of the product
4. The direct cost per unit of the product
5. The full cost per unit of the product
6. The value (in ) of the planned total Output for the company using absorption costing
7. The planned Cost of Goods Sold using absorption costing
8. The planned Total Contribution Margin using absorption costing
9. The planned cost of unused capacity (in terms of direct labor).
10. The total amount of cost connected with the usage of the 4 resources planned for the next period.
image text in transcribed

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

Step: 3

blur-text-image

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

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Cassy JH Budd

11th edition

78025877, 978-0078025877

More Books

Students also viewed these Accounting questions