Direct materials. Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) E

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Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Costs A Number Of Units To Be Produced B E 1 (46.86 KiB) Viewed 43 times

Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Costs A Number Of Units To Be Produced B E 2 (17.75 KiB) Viewed 43 times

Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Costs A Number Of Units To Be Produced B E 3 (27.17 KiB) Viewed 43 times

Direct Materials Direct Labor Manufacturing Overhead Total Manufacturing Costs A Number Of Units To Be Produced B E 4 (17.43 KiB) Viewed 43 times

Direct materials. Direct labor Manufacturing overhead Total manufacturing costs (a) Number of units to be produced (b) Estimated unit product cost (a) + (b) First $ 240,000 B0,000 230,000 $ 550,000 120,000 $ 4.58 Quarter Second $ 120,000 40,000 206,000 $366,000 60,000 $ 6.10 Complete this question by entering your answers in the tabs below. Third $ 60,000 20,000 194,000 $ 274,000 ered T 30,000 $ 9.13 Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product. Fourth $ 180,000 60,000 7 $7 Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? 90,000 $7 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? Required 2 > 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Required 1 Required 2 Required 3 Required 4 Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter? Fixed manufacturing overhead cost
Complete this question by entering your answers in the tabs below. Required 3 Required 4 Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.) Unit product cost + Required 1 Required 2 < Required 1 Required 3 >
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is causing the estimated unit product cost to fluctuate from one quarter to the next? The fixed portion of the manufacturing overhead cost is causing the unit product costs to fluctuate. The unit product cost increases as the level of production decreases because the fixed overhead is spread over fewer units. The fixed portion of the manufacturing overhead cost is causing the unit product costs to fluctuate. The unit product cost decreases as the level of production decreases because the fixed overhead is spread over fewer units. The variable portion of the manufacturing overhead cost is causing the unit product costs to fluctuate. The unit product cost increases as the level of production decreases because the variable overhead is spread over fewer units. The variable portion of the manufacturing overhead cost is causing the unit product costs to fluctuate. The unit product cost decreases as the level of production decreases because the variable overhead is spread over fewer units.
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. (Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.) Unit product cost < Required 3 Required 4