Jean Peck’s Furniture manufactures tables for hospitality se…
Jean Peck’s Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400 after negotiations. In the month of January, it manufactures 3,200 tables and sells 2,400 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month. The following information is provided for the month of January: Variable manufacturing costs $130 per unit Fixed manufacturing costs $90,000 per month Fixed Administrative expenses $30,000 per month At the end of the month Jean Peck’s Furniture has an ending inventory of finished goods of 800 units. The company also incurs a sales commission of $11 per unit. What is the cost of goods sold per unit when using absorption costing?
Read DetailsLiberty Box Company calculated an indirect-cost rate of $12….
Liberty Box Company calculated an indirect-cost rate of $12.50 per labor hour for fringe benefits for use in their normal costing system. At the end of the year, the actual cost of fringe benefits was $980,000. The total of labor hours worked for the year was the same amount as budgeted, 70,000 hours. If Job #640 required the use of 15 labor hours and the company used the adjusted allocation rate approach, by what amount would the cost of Job #640 change?
Read DetailsSwan Textiles Inc. produces and sells a decorative pillow fo…
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $23.00 per unit Variable marketing costs $6.00 per unit Fixed manufacturing costs $15 per unit Administrative expenses, all fixed $21.00 per unit Ending inventories: Direct materials -0- WIP -0- Finished goods 500 units What is the contribution margin using variable costing?
Read Details