ADM 2304 Lecture Notes - Lecture 2: Online Advertising, European Cooperation In Science And Technology, Deferral

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lilachippopotamus32

13 May 2017

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> those labour costs that can be easily traced to individual units of product e. g, (wage paid to car assembly workers), (ceo salary wouldn"t count here since he doesn"t assemble the car) > direct materials and direct labour are called prime costs: manufacturing overhead (manu overhead and direct labour are called conversion costs) > manufacturing costs that cannot be easily traced directly to speci c units produced. > aka: indirect manufacturing cost, factory overhead, and factory burden i. > usually considered to be part of manufacturing overhead. > product speci c overtime premiums are part of direct labour. Non-manufacturing costs: marketing or selling costs = costs necessary to get the order and deliver the product, administrative costs = all executive, organizational, and clerical costs non. > product costs include direct materials, direct labour, and manufacturing overhead ( rst in balance sheet, and then income statement) C. direct materials costs: electrical costs to light the production facility, sales commissions.

Related Questions

Kubin Companyâs relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.50
Direct labor	$	5.50
Variable manufacturing overhead	$	3.00
Fixed manufacturing overhead	$	6.50
Fixed selling expense	$	5.00
Fixed administrative expense	$	4.00
Sales commissions	$	2.50
Variable administrative expense	$	2.00

Required:

2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

2. Assume the cost object is the Manufacturing Department and that its total output is 29,250 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department? (Round per unit values to 2 decimal places.)

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

Show less


2a.	Direct materials per unit	$8.50
	Direct labor per unit	5.50
	Variable manufacturing overhead per unit	3.00
	Fixed manufacturing overhead per unit	6.50
	Total manufacturing cost per unit	$23.50
	Number of units sold	29,250
	Total direct costs	$687,375

2b.	Total indirect costs

3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent $117,000 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representativesâ compensation.

a. When the company sells 29,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

a. When the company sells 29,250 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.)

b. When the company sells 29,250 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

<a tabindex="1" aria-label="3. Assume the cost object is the companyâs various sales representatives. Furthermore, assume that the company spent ${{[a(12)]:#,###}} of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company" s="" sales="" representativesâ="" compensation.="" a.="" when="" the="" company="" sells {{[a(3)]:#,###}}="" units,="" what="" is="" total="" direct="" selling="" expense="" that="" can="" be="" readily="" traced="" to="" individual="" representatives?="" (round="" per="" unit="" value="" 2="" decimal="" places.)="" b.="" indirect="" cannot="" show="" less'="" class="show gaga" style="margin: 0px; padding: 0px; border: 0px; color: rgb(22, 72, 131); font-weight: bold; outline: none; font-size: 11px; position: absolute; right: 24px;">Show less


3a.	Sales commissions per unit
	Number of units sold
	Total sales commission
	Fixed portion of sales representativesâ compensation
	Total direct selling expense

3b.	The total indirect selling expense

harlequinsardine998

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,000 Insurance on factory building 1,500 Raw materials (plastics, polystyrene, etc.) 75,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 58,000 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,100 Factory manager's salary 5,700 Property taxes on factory building 400 Advertising for helmets 14,000 Sales commissions 10,000 Depreciation on factory building 1,500 Margin check figures provide key numbers to confirm that you are on the right track. Instructions (a) Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns. DM $75,000 DL $58,000 MO $22,100 PC $25,100 (b) Compute the cost to produce one helmet. P1-2A Classify manufacturing costs into different categories and compute the unit cost. (LO 2), AP Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year. Property taxes on the factory building will be $9,000 per year. Instructions (a) Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. DM $111,00 DL $ 90,000 MO $ 18,100 PC $ 9,500 (b) Compute the cost to produce one audio system.

coffeetermite413

Christopherâs Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2016 follow: Raw Materials Inventory $ 15,700 Work in Process Inventory 6,100 Finished Goods Inventory 22,000 The following transactions occurred during January: (a) Purchased materials on account for $26,100. (b) Issued materials to production totaling $20,800, 90 percent of which was traced to specific jobs and the remainder of which was treated as indirect materials. (c) Payroll costs totaling $17,300 were recorded as follows: $10,100 for assembly workers 1,300 for factory supervision 2,900 for administrative personnel 3,000 for sales commissions (d) Recorded depreciation: $4,700 for machines, $700 for the copier used in the administrative office. (e) Recorded $1,400 of expired insurance. Forty percent was insurance on the manufacturing facility, with the remainder classified as an administrative expense. (f) Paid $5,600 in other factory costs in cash. (g) Applied manufacturing overhead at a rate of 200 percent of direct labor cost. (h) Completed all jobs but one; the job cost sheet for this job shows $2,300 for direct materials, $2,200 for direct labor, and $4,400 for applied overhead. (i) Sold jobs costing $50,900. The revenue earned on these jobs was $66,170. Required: 1. Set up T-accounts, record the beginning balances, post the January transactions, and compute the final balance for the following accounts: (Post all amounts separately. Do not combine/add any dollar amounts when posting to the t-accounts.) Raw Materials Inventory. Work in Process Inventory. Finished Goods Inventory. Cost of Goods Sold. Selling, General, and Administrative Expenses. Sales Revenue. Other accounts (Cash, Payables, etc.). 2. Determine how much gross profit the company would report during the month of January before any adjustment is made for the overhead balance. 3. Determine the amount of over- or underapplied overhead. 4. Compute adjusted gross profit assuming that any over- or underapplied overhead balance is adjusted directly to Cost of Goods Sold.

indigotiger304

ADM 2304 Lecture Notes - Lecture 2: Online Advertising, European Cooperation In Science And Technology, Deferral

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