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accounting problems with all solutions-George Corporation has an estimated monthly sales of 3,200

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Question;1. (TCO 1) George Corporation has an estimated monthly sales of 3,200 units for $70 per unit. Variable costs include manufacturing costs of $36 and distribution costs of $14. Fixed costs are $40,000 per month.Required:Determine each of the following values.a. Unit contribution marginb. Monthly break-even unit sales volumeCreate a contribution margin-based income statement2. (TCO 7) Darling Manufacturing Inc. manufactures two products, A and B, from a joint process. A single production costs $5,000 and results in 200 units of A and 800 units of B. To be ready for sale, both products must be processed further, incurring seperable costs of $3 per unit for A and $4 per unit for B. The market price for Product A is $15 and for Product B is $10.Required: Allocate joint production costs to each product using the net realizable value method3. (TCO6) Santa Inc. manufactures toys based on the following information.Standard costsMaterials (4 ounces at $4)$16Direct labor (1 hour per unit)$7Variable overhead (based on direct labor hours)$3.50Fixed overhead budget$16,000Actual results and costsMaterials purchasedUnits10,000Cost$38,500Materials used in productionFinished product units2,400Raw material (ounces)10,200Direct labor hours2,400Direct labor cost$17,280Variable overhead costs$8,250Fixed overhead costs$15,700Required:Compute the following variances (show calculations).a. Materials usage varianceb. Labor rate variancec. Fixed overhead budget variance4. (TCO4) Eastwood Company has the following information for previous year.Selling price $150 per unitVariable production costs $40 per unit producedVariable selling and admin. expenses $16 per unit soldFixed production costs $200,000Fixed selling and admin. expenses $140,000Units produced 10,000 unitsUnits sold 8,000 unitsThere were no beginning inventories.a. What is the ending inventory for Eastwood using the absorption costing method?b. What is the cost of ending inventory for Eastwood using the variable costing method?5. (TCO 8) Musical Instruments Company manufactures two products (trumpets and trombones). Overhead costs ($175,000) have been divided into three cost pools that use the following activity drivers.ProductNumber of setupsMachine hoursPacking ordersTrumpets501,500150Trombones504,500250Cost per pool$60,000$90,000$25,000Required (show all calculations)a. What is the allocation rate for trumpets per setup using activity-based costing?b. What is the allocation rate for trumpets per machine hours using activity-based costing?c. What is the allocation rate for trumpets per packing order using activity-based costing?6. (TCO 5) The Baxter Corporation has the following budgeted and actual results.Budgeted data Actual resultsUnit sales 35,000 Unit sales 36,000Unit production 35,000 Unit production 37,000Fixed overhead Fixed overheadSupervision $25,000 Supervision $23,500Depreciation $40,000 Depreciation $40,000Rent $20,000 Rent $20,000Variable costs per unit Variable costsDirect materials $25.00 Direct materials $900,000Direct labor $26.00 Direct labor $950,000Supplies $0.25 Supplies $9,000Indirect labor $1.30 Indirect labor $50,000Electricity $0.20 Electricity $7,500Required:Prepare a performance report for all costs, showing flexible budget variances (indicate F or U).

 

Paper#42834 | Written in 18-Jul-2015

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