Total direct labor hours 250000 direct costs 10000000

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Total direct labor hours 250,000 Direct costs $10,000,000 Total indirect labor hours 50,000 Total indirect-labor-related costs $ 5,000,000 Total indirect non-labor related costs $ 7,000,000 a. $20. b. $28. c. $40. d. $48. 192. CSO: 1D1c LOS: 1D1e Merlene Company uses a standard cost accounting system. Data for the last fiscal year are as follows. Units Beginning inventory of finished goods 100 Production during the year 700 Sales 750 Ending inventory of finished goods 50 Per Unit Product selling price $200 Standard variable manufacturing cost 90 Standard fixed manufacturing cost 20* Budgeted selling and administrative costs (all fixed) $45,000 *Denominator level of activity is 750 units for the year. There were no price, efficiency, or spending variances for the year, and actual selling and administrative expenses equaled the budget amount. Any volume variance is written off to cost of goods sold in the year incurred. There are no work-in-process inventories. The amount of operating income earned by Merlene for the last fiscal year using variable costing was a. $21,500. b. $22,500. c. $28,000. d. $31,000.
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74 193. CSO: 1D1c LOS: 1D1e Loyal Co. produces three types of men’s undershirts: T-shirts, V-neck shirts, and athletic shirts. In the Folding and Packaging Department, operations costing is used to apply costs to individual units, based on the standard time allowed to fold and package each type of undershirt. The standard time to fold and package each type of undershirt is as follows. T-shirt 40 seconds per shirt V-neck shirt 40 seconds per shirt Athletic shirt 20 seconds per shirt During the month of April, Loyal produced and sold 50,000 T-shirts, 30,000 V-neck shirts, and 20,000 athletic shirts. If costs in the Folding and Packaging Department were $78,200 during April, how much folding and packaging cost should be applied to each T-shirt? a. $.52134. b. $.6256. c. $.7820. d. $.8689.
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75 194. CSO: 1D1d LOS: 1D1g Dremmon Corporation uses a standard cost accounting system. Data for the last fiscal year are as follows. Units Beginning inventory of finished goods 100 Production during the year 700 Sales 750 Ending inventory of finished goods 50 Per Unit Product selling price $200 Standard variable manufacturing cost 90 Standard fixed manufacturing cost 20* Budgeted selling and administrative costs (all fixed) $45,000 *Denominator level of activity is 750 units for the year. There were no price, efficiency, or spending variances for the year, and actual selling and administrative expenses equaled the budget amount. Any volume variance is written off to cost of goods sold in the year incurred. There are no work-in-process inventories. Assuming that Dremmon used absorption costing, the amount of operating income earned in the last fiscal year was a. $21,500. b. $27,000.1D1d c. $28,000. d. $30,000. 195. CSO: 1D1d LOS: 1D1g Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June. Variable Variable Fixed Fixed manufacturing cost marketing cost manufacturing cost marketing cost $5.00 $3.50 $2.00 $4.00 A total of 100,000 units were manufactured during June of which 10,000 remain in ending inventory. Chassen uses the first-in, first-out (FIFO) inventory method, and the 10,000 units are the only finished goods inventory at month-end.
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