MaBak Inc. produces a slime in an eight-ounce packages. The slime is sold wholesale in 12-unit...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
MaBak Inc. produces a slime in an eight-ounce packages. The slime is sold wholesale in 12-unit cases for $120 per case. There is a selling commission of $9.95 per case. The January direct materials, direct labor, and factory overhead costs are as follows: Glue base Shaving cream Jar (8-oz.) Department Mixing Filling Electricity Factory Rent Equipment depreciation Supplies Cop Cost Behavior Variable Variable Variable April May June Cost Behavior Variable Variable Mixed Fixed Fixed DIRECT MATERIALS Fixed Units per Case FACTORY OVERHEAD Cost Behavior 40 ozs. 50 ozs. 12 units DIRECT LABOR Time per Case 30 min. 5 Labor Rate per Hour $24.00 15.00 Total Cost 2,500 2,250 2,380 2,330 2,470 2,200 Cost per Unit $0.20 0.50 written 0.17 $3,960 32,170 12,140 2,000 $50,308 Direct Materials Cost per Case $ 8.00 25.00 2.00 $35.00 The management of MaBak Inc. wishes to determine the number of cases required to break even per month. The electricity cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: 2020 Case Production January 948 Direct Labor Cost per Case Utility Total Cost $2,100 1,885 2,002 1,875 1,900 1,860 Fixed Costs, Variable Cost and Break Even-Show your work 1. Determine the fixed and variable portion of the electricity cost using the high-low method. At High Point At Low Point Variable cost per unit Total fixed cost Total cost 2. Determine the contribution margin per case. Enter your answer to the nearest cent (Don't commission and the electricity cost in your variable cost calculation). Sales Price per Case Direct Material Cost per Case Direct Labor Cost per Case Variable Electricity Cost Commission Cost per Case Total Variable Cost Contribution Margin per Case 3. Determine the fixed costs per month, including the electricity fixed cost from part (1). Electricity cost (from part 1) Factory Rent Equipment Depreciation Supplies Total Fixed Costs $ 4. Determine the break-even number of cases per month. Cases pywritten Material MaBak Inc. produces a slime in an eight-ounce packages. The slime is sold wholesale in 12-unit cases for $120 per case. There is a selling commission of $9.95 per case. The January direct materials, direct labor, and factory overhead costs are as follows: Glue base Shaving cream Jar (8-oz.) Department Mixing Filling Electricity Factory Rent Equipment depreciation Supplies Cop Cost Behavior Variable Variable Variable April May June Cost Behavior Variable Variable Mixed Fixed Fixed DIRECT MATERIALS Fixed Units per Case FACTORY OVERHEAD Cost Behavior 40 ozs. 50 ozs. 12 units DIRECT LABOR Time per Case 30 min. 5 Labor Rate per Hour $24.00 15.00 Total Cost 2,500 2,250 2,380 2,330 2,470 2,200 Cost per Unit $0.20 0.50 written 0.17 $3,960 32,170 12,140 2,000 $50,308 Direct Materials Cost per Case $ 8.00 25.00 2.00 $35.00 The management of MaBak Inc. wishes to determine the number of cases required to break even per month. The electricity cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: 2020 Case Production January 948 Direct Labor Cost per Case Utility Total Cost $2,100 1,885 2,002 1,875 1,900 1,860 Fixed Costs, Variable Cost and Break Even-Show your work 1. Determine the fixed and variable portion of the electricity cost using the high-low method. At High Point At Low Point Variable cost per unit Total fixed cost Total cost 2. Determine the contribution margin per case. Enter your answer to the nearest cent (Don't commission and the electricity cost in your variable cost calculation). Sales Price per Case Direct Material Cost per Case Direct Labor Cost per Case Variable Electricity Cost Commission Cost per Case Total Variable Cost Contribution Margin per Case 3. Determine the fixed costs per month, including the electricity fixed cost from part (1). Electricity cost (from part 1) Factory Rent Equipment Depreciation Supplies Total Fixed Costs $ 4. Determine the break-even number of cases per month. Cases pywritten Material
Expert Answer:
Answer rating: 100% (QA)
the problem is showing operation results of Jauary 2016 product is hand and body lotion a bottle contains 8 ounce ad a case has 12 ounce Per case is sold at 100 Sale commission is 20 per case Product ... View the full answer
Related Book For
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
Students also viewed these accounting questions
-
Genuine Spice Inc. began operations on January 1, 2016. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for...
-
Genuine Spice Inc. began operations on January 1, 2014. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold whole-sale in 12-bottle cases...
-
Natural Fragrance, Inc., began operations on January 1, 2012. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle...
-
Hughes Company has a credit balance of $5,000 in its Allowance for Doubtful Accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at...
-
Consider the parallel planes of infinite extent normal to the page having opposite edges aligned as shown in the sketch. (a) Using appropriate view factor relations and the results for opposing...
-
Prove or disprove: adj(adj(T)) = T.
-
A long, straight wire carrying a current of \(2.5 \mathrm{~A}\) to the left is placed directly below and parallel to the central axis of a solenoid that has 1000 windings per meter of length and a...
-
Suppose after submitting your sealed bid in a Vickrey auction you find out that you have lost the auction (you were not the highest bidder); however, you have the opportunity to revise your bid....
-
6. An annular disk of mass M, inner radius a and outer radius b is placed on a horizontal surface with coefficient of friction , as shown in the figure. At some time, an impulse Jox is applied at a...
-
Annabelle Sizemore has cashed in some treasury bonds and a life insurance policy that her parents had accumulated over the years for her. She has also saved some money in certificates of deposit and...
-
Add JavaDoc usage to your word occurrences application. import java.io.BufferedReader;import java.io.DataInputStream;import java.io.FileInputStream;import java.io.IOException;import...
-
Gray, Wilkes and Booth are partners. They share profits and losses in the ratios of 3 /8, 3 /8 and 1 /4 respectively. For the year ending 31 December 2012 their capital accounts remained fixed at the...
-
Why do social media marketers need to understand the behavior of consumer segments? What are the bases of segmentation used to group consumers?
-
How do we give a variable a value?
-
What are the four storage classes?
-
What happens to automatic variables when execution leaves the block where they are declared?
-
/* Aside Styles */ aside#tour_itinerary h1{font-size:1.2em;} aside#tour_itineraryh2{font-size:0.9em;} aside#tour_itinerary p{font-size:0.8em;}...
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
The following data (in millions) are taken from recent financial statements of Nike Inc.: ______________________Year 2...............Year 1 Net sales (revenues)...........$24,128..............$20,862...
-
At the end of April, the first month of operations, the following selected data were taken from the financial statements of Shelby Crawford, an attorney: Net income for April .........$120,000 Total...
-
At the end of the current year, $17,555 of fees have been earned but have not been billed to clients. Journalize the adjusting entry to record the accrued fees.
-
In Fig. 122, although a Sending may have multiple assessments, they must all be from different reviewers. The current model does not guarantee it. Write an invariant that deals with this issue....
-
Considering Fig. 13-26, a Proposal has an association to Sending that is 1 to *{ordered} stack. Considering that this association is bidirectional, show the mutual-friends implementation of its...
-
Consider Fig. 13-28, try to present a concentration version of this diagram and present the corresponding (smelling) code. Interface : Controller send proposal(a_proposal_id,a_federal_manager_id) a...
Study smarter with the SolutionInn App