b) A factory incurred the following expenditure during the year 2011: Direct material consumed Manufacturing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
b) A factory incurred the following expenditure during the year 2011: ₹ Direct material consumed Manufacturing Wages Manufacturing overhead: Fixed Variable 3,60,000 2.50,000 12,00,000 7,00,000 6,10,000 25,10,000 In the year 2012, following changes are expected in production and cost of production. (i) Production will increase due to recruitment of 60% more workers in the factory. (ii) Overall efficiency will decline by 10% on account of recruitment of new workers (iii) There will be an increase of 20% in Fixed overhead and 60% in Variable overhead. (iv) The cost of direct material will be decreased by 6%. (v) The company desire to earn a profit of 10% on selling price. Calculate the cost of production and selling price. b) A factory incurred the following expenditure during the year 2011: ₹ Direct material consumed Manufacturing Wages Manufacturing overhead: Fixed Variable 3,60,000 2.50,000 12,00,000 7,00,000 6,10,000 25,10,000 In the year 2012, following changes are expected in production and cost of production. (i) Production will increase due to recruitment of 60% more workers in the factory. (ii) Overall efficiency will decline by 10% on account of recruitment of new workers (iii) There will be an increase of 20% in Fixed overhead and 60% in Variable overhead. (iv) The cost of direct material will be decreased by 6%. (v) The company desire to earn a profit of 10% on selling price. Calculate the cost of production and selling price.
Expert Answer:
Answer rating: 100% (QA)
To calculate the cost of production and selling price for the year 2012 well need to analyze the cha... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
production of product C Corporate overhead of 60 000 is allocated to each product in equal parts If the company decides to discontinue product C 50 of its quantity demanded will shift to product A i...
-
Units Unit Cost January 1 2016 beginning inventory2800 800 Purchases January 6 20163500 900 January 25 20163200 950 February 17 20162600 1000 March 27 20162900 1050 A physical inventory on March 31...
-
During May, Thomson Company incurred factory overhead costs as follows: indirect materials, $24,500; indirect labor, $64,500; utilities cost, $5,800; and factory depreciation, $45,200. Journalize the...
-
Spherical refracting surfaces an object O stands on the central axis of a spherical refracting surface. For this situation, each problem in Table 34-5 refers to the index of refraction n1 where the...
-
Describe in two short paragraphs how foreign direct investment activities differ from international trade and the implications of this difference for accounting.
-
How can organizations ensure effective knowledge transfer and retention within their resource management processes, particularly during times of employee turnover or restructuring ?
-
At a political debate, a sample of audience members were asked to name the political party to which they belonged. Their responses are shown in the table. What is the mode of the responses? Political...
-
From the following partial mixed list, select the appropriate titles and prepare a stockholders equity section using the source-of-capital approach as shown in the Blueprint example for Ununoctium...
-
4. Write the definitions for engineering stress, true stress, engineering strain, and true strain for loading along a single axis. A commercially pure copper wire originally 10.00 m long is pulled...
-
Kat Ltd.s September balance sheet contains the following information: Cash.............................................................................$ 37,500 (dr) Accounts...
-
OAB company intends to distribute dividends to its stockholders amounting to BD12 per share next year. The amount represents 15% return of investors money. However, the company as part of its...
-
Companies often do work on a cost-reimbursement basis. That is, Company B reimburses Company A for the cost of doing work for Company B. Suppose your company has a contract that calls for...
-
Figure below shows a typical supersonic/hypersonic wind tunnel layout that consists of a converging-diverging nozzle that accelerates the air stream from the reservoir to the design Mach number...
-
Ethan is playing baseball and is sliding into second base. He has a mass of 8 4 . 1 kg and begins sliding at a speed of 6 . 1 m / s . The average friction force acting against him during his motion...
-
What role do emergent network structures play in fostering agility and adaptability within organizations amidst volatile market conditions ?
-
Calculate all the ratios 1) Amount Change and % change from Year 2000 to Year2001 2) Current ratio, Acid Test Ratio, A/R turn-over, Avg collection period, Solvency Ratio, profit ratio for Year2001)...
-
ABBC Inc. produces three different products. Information about these products can be found above: Unit selling price Unit costs: Variable manufacturing Fixed manufacturing Fixed selling and...
-
Diamond Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Diamond $1,500 per year. The craft...
-
Leslie is a single taxpayer who is under age 65 and in good health. For 2012, she has a salary of $23,000 and itemized deductions of $1,000. Leslie is entitled to one exemption on her tax return. a....
-
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2012. Their salaries for the year total $83,000 and they have taxable interest income of $4,000. They have no...
-
John Fuji (age 37) moved from California to Washington in December 2011. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social Security number is 571-78-5974 and he is single. His earnings...
-
What are the various forms of virtual communication used in modern organizations?
-
What are the types of interpersonal communication?
-
How does one choose between communication methods and handle barriers to effective communication?
Study smarter with the SolutionInn App