8. Total fixed manufacturing cost (see requirement 1) (a).......................
ID: 399168 • Letter: 8
Question
8.
Total fixed manufacturing cost
(see requirement 1) (a).....................................
$40,000
Number of units produced (b).............................
12,500
Average fixed manufacturing cost per unit produced (a) ÷ (b).............................................
?
9.
Find the total fixed mfg. cost if 8,000 units are produced.
Total fixed manufacturing cost
(see requirement 1)..........................................
$40,000
10.
Total fixed manufacturing cost when 12,500 are
(see requirement 1) total fixed costs don’t change!
$40,000
11.
In # 11, calculate total mfg. overhead for 8,000 units
Variable overhead per unit (a)................................
Number of units produced (b)................................
Total variable overhead cost (a) × (b)......................
Total fixed overhead (see requirement 1)...............
Total manufacturing overhead cost........................
$52,000
Total manufacturing overhead cost (a).................
$52,000
Number of units produced (b)..............................
8,000
Manufacturing overhead per unit (a) ÷ (b)...........
??
In # 12 calculate the total mfg. overhead for 12,500 units.
12.
Variable overhead per unit (a)................................
$1.50
Number of units produced (b)................................
12,500
Total variable overhead cost (a) × (b)......................
??
Total fixed overhead (see requirement 1)...............
40,000
Total manufacturing overhead cost........................
???
Total manufacturing overhead cost (a).................
$58,750
Number of units produced (b)..............................
?????
Manufacturing overhead per unit (a) ÷ (b)...........
$4.70
13.
If selling price is $22, find the unit contribution margin
Selling price per unit.................................................
$22.00
8.
Total fixed manufacturing cost
(see requirement 1) (a).....................................
$40,000
Number of units produced (b).............................
12,500
Average fixed manufacturing cost per unit produced (a) ÷ (b).............................................
?
9.
Find the total fixed mfg. cost if 8,000 units are produced.
Total fixed manufacturing cost
(see requirement 1)..........................................
$40,000
10.
Total fixed manufacturing cost when 12,500 are
(see requirement 1) total fixed costs don’t change!
$40,000
11.
In # 11, calculate total mfg. overhead for 8,000 units
Variable overhead per unit (a)................................
Number of units produced (b)................................
Total variable overhead cost (a) × (b)......................
Total fixed overhead (see requirement 1)...............
Total manufacturing overhead cost........................
$52,000
Total manufacturing overhead cost (a).................
$52,000
Number of units produced (b)..............................
8,000
Manufacturing overhead per unit (a) ÷ (b)...........
??
In # 12 calculate the total mfg. overhead for 12,500 units.
12.
Variable overhead per unit (a)................................
$1.50
Number of units produced (b)................................
12,500
Total variable overhead cost (a) × (b)......................
??
Total fixed overhead (see requirement 1)...............
40,000
Total manufacturing overhead cost........................
???
Total manufacturing overhead cost (a).................
$58,750
Number of units produced (b)..............................
?????
Manufacturing overhead per unit (a) ÷ (b)...........
$4.70
13.
If selling price is $22, find the unit contribution margin
Selling price per unit.................................................
$22.00
C: UsersmurtuzatDropbox 0_consolidated teaching1001_teaching_2017100_fALL 2017 17_pre quiz & ICWA0_inclass exercises_17 ch 2 17_ch2_foundational_091217_p.docx Foundational Problem, Page 49, Chapter 2 (covers LEARNING OBJECTIVEs 2-1, 2-2, 2-3, 2-4, 2-6, 2-7] This is a reproduction of the foundational problem. Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: Amount Per Unit $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $1.00 $0.50 Fixed manufacturing overhead . . . This exercise has 2 parts: Part 1 is WARM UP for Part 2, which requires you to answer questions asked. Warm-UP: To help you with the Warm up portion of the exercise, I am using 2 tables which rearranges the information the exercise provides in a slightly different form. Please study it! Table 1 classifies various items from the data given; the first column (A) gives item number; the last column (G) on right gives the total costs for 10,000 units. The 2nd column (B) shows if the item is direct or indirect; 3rd column shows variable or fixed; 4th (D) says whether it is product (pr) or (pe)or period cost. It then adds the numerical values of those itemsExplanation / Answer
Total fixed manufacturing cost
(see requirement 1) (a).....................................
$40,000
Number of units produced (b).............................
12,500
Average fixed manufacturing cost per unit produced (a) ÷ (b)................................. 40,000 / 12500 = $3.2
?
9.
Find the total fixed mfg. cost if 8,000 units are produced.
Total fixed manufacturing cost
$40,000
$40,000
10.
Total fixed manufacturing cost when 12,500 are
$40,000
total fixed costs don’t change!
11.
In # 11, calculate total mfg. overhead for 8,000 units
Variable overhead per unit (a) $1.50
Number of units produced (b) 8000
Total variable overhead cost (a) × (b)
1.5 * 8000 = 12000
Total fixed overhead (see requirement 1) 52000 - 12000 = $40000
Total manufacturing overhead cost.
$52,000
Total manufacturing overhead cost (a) $52000
Number of units produced (b)..............................
8,000
Manufacturing overhead per unit (a) ÷ (b)
52000/8000 = $6.5
In # 12 calculate the total mfg. overhead for 12,500 units.
12.
Variable overhead per unit (a)................................
$1.50
Number of units produced (b)................................
12,500
Total variable overhead cost (a) × (b) 1.5 * 12500
$18750
Total fixed overhead (see requirement 1)...............
40,000
Total manufacturing overhead cost 18750+40000
$58750
Total manufacturing overhead cost (a).................
$58,750
Number of units produced (b)$58750/4.70
$12500
Manufacturing overhead per unit (a) ÷ (b)...........
$4.70
Total fixed manufacturing cost
(see requirement 1) (a).....................................
$40,000
Number of units produced (b).............................
12,500
Average fixed manufacturing cost per unit produced (a) ÷ (b)................................. 40,000 / 12500 = $3.2
?
9.
Find the total fixed mfg. cost if 8,000 units are produced.
Total fixed manufacturing cost
$40,000
$40,000
10.
Total fixed manufacturing cost when 12,500 are
$40,000
total fixed costs don’t change!
11.
In # 11, calculate total mfg. overhead for 8,000 units
Variable overhead per unit (a) $1.50
Number of units produced (b) 8000
Total variable overhead cost (a) × (b)
1.5 * 8000 = 12000
Total fixed overhead (see requirement 1) 52000 - 12000 = $40000
Total manufacturing overhead cost.
$52,000
Total manufacturing overhead cost (a) $52000
Number of units produced (b)..............................
8,000
Manufacturing overhead per unit (a) ÷ (b)
52000/8000 = $6.5
In # 12 calculate the total mfg. overhead for 12,500 units.
12.
Variable overhead per unit (a)................................
$1.50
Number of units produced (b)................................
12,500
Total variable overhead cost (a) × (b) 1.5 * 12500
$18750
Total fixed overhead (see requirement 1)...............
40,000
Total manufacturing overhead cost 18750+40000
$58750
Total manufacturing overhead cost (a).................
$58,750
Number of units produced (b)$58750/4.70
$12500
Manufacturing overhead per unit (a) ÷ (b)...........
$4.70
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