The following cost information is for a sales volume of 6,30…
The following cost information is for a sales volume of 6,300 units: Direct materials per unit $8 Total direct labor $54,000 Fixed manufacturing overhead $30,000 Variable manufacturing overhead 120% of direct labor Fixed selling and administrative costs $50,000 Variable selling and administrative costs $5 per unit Calculate cost of goods sold using variable costing.
Read DetailsA cost hierarchy is used by businesses and is divided into f…
A cost hierarchy is used by businesses and is divided into four layers. Each layer has various costs assigned to it and is given a rationale for its use. Which of the following best represents the rationale for product/process-level costs?
Read DetailsA company has the following cost information: Units prod…
A company has the following cost information: Units produced and sold 10,000 Direct materials $75,000 Direct labor hours per unit 1.0 Direct labor rate $10 per hour Variable manufacturing overhead 40% of direct labor Fixed manufacturing overhead $25,000 Variable selling and administrative expenses $6 per unit Fixed and selling administrative expenses $20,000 Calculate total period costs using variable costing.
Read DetailsA company with three products classifies its costs as belong…
A company with three products classifies its costs as belonging to five functions: design, production, marketing, distribution, and customer services. For pricing purposes, all company costs are assigned to the three products. The direct costs of each of the five functions are traced directly to the three products. The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. The allocation base that would most likely be the best for allocating the indirect costs of the distribution function is
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