Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of itsproduct X:Direct materials.E12 000Direct labour.£16 000E1000Depreciation of machinery..Sales.856 000What is the contribution per unt of product?a. £7.00b.E0.80c. £2.50d.£3.50

Name: Bilbo Limited incurs the following costs and revenues in manufacturin
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of itsproduct X:Direct materials.E12 000Direct labour.£16 000E1000Depreciation of machinery..Sales.856 000What is the contribution per unt of product?a. £

The profit-volume (PV) ratio indicates the relationship between the contribution and sales. The…

Business

Accounting

Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of its product X: Direct materials. E12 000 Direct labour. E16 000 E1000 Depreciation of machinery. Sales. 856 000 What is the contribution per unit of product? a. £7.00 b.E0.80 c. £2.50 d.£3.50

Bilbo Limited incurs the following costs and revenues in manufacturing and selling 8,000 units of its product X: Direct materials. E12 000 Direct labour. E16 000 E1000 Depreciation of machinery. Sales. 856 000 What is the contribution per unit of product? a. £7.00 b.E0.80 c. £2.50 d.£3.50

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

See similar textbooks

Similar questions

XYZ Ltd. has the following costs for 1,000 units: Total Cost Direct materials E 1.500 Direct labour 7,500 Depreciation on building 30,000 What is the total amount of direct materials for 100 units? a. £1.50 b. £225.00 c. £3.00 d. £150.00 Cost per Unit € 1.50 7.50 30.00
The Absorption Costing Income Statement of a company is as follows:Normal Capacity in units25,000Sales in units28,000Production in units27,000Rs.Rs.Sales Revenue @ Rs. 50 per unit14,00,000Less : Manufacturing Cost of Goods Sold :Direct Material @ Rs. 5 each1,35,000Direct Labour @ Rs. 10 each2,70,000Variable Overhead @ Rs. 5 each1,35,000Fixed Manufacturing Cost at the Rate of Rs. 8 each2,16,000Total Manufacturing Cost7,56,000Add : Opening Stock : 3,000 units @ Rs. 28 each84,0008,40,000Less : Closing Stock :2,000 units @ Rs. 28 each56,000Cost of Goods Sold7,84,000Gross Profit before Adjustment6,16,000Add : Fixed Cost over Absorbed16,000Gross Profit after Adjustment6,32,000Less : Non-manufacturing Overhead :Fixed Office and Administrative1,50,000Variable Selling Overhead56,000Fixed Selling Overhead92,000Total Non-manufacturing Cost2,98,000Net Income3,34,000Additional Information:The fixed manufacturing and office overhead includes depreciation of Rs. 74,000.Required:(i) Break-even sales…
A company produces two products, product A and product B. Both products are produced by using similar machines and similar methods. The indirect costs of the company are 45 000 €/year. More information regarding product A and product B: Product A Product B Produced items 250/year 7000 items/year Labour hours 2h/item 3h/item Calculate how the indirect costs of the company should be accumulated into two different products, product A and product B. Your answer:
8. If the direct labour cost for company A is £15,000, direct material cost is £26,000, factory rent is £10,000, and equipment maintenance cost is £12,000, then the conversion costs are a. £22,000. b. £25,000. c. £37,000, d. None of the above.
What would be the total contribution to profit to the company as a whole for 10,000 units transferred to Division B and later sold to outside customers at P21 per unit. A. P20,000 B. P40,000 C. (P20,000) D. P80,000
Calculate the prime cost from the following information: Direct material purchased: R 100,000 Direct material consumed: R 90,000 Direct labour: R60,000 * Direct expenses: R 20,000 Manufacturing overheads: R 30,000
Link Components plc manufactures 2 products for the manufacture of electric motor vehicles, X and Y. Cost information is as follows: X Y Selling price ……… ……… …….. £37.50 £42.00 Materials ……… ……… …….. £13.50 £31.50 Labour ……… ……… …….. £ 6.00 £ 2.50 Other variable costs ……… …….. £10.50 £ 2.00 Fixed costs ……… ……… …….. £ 4.50 £ 3.50 £34.50 £39.50 Profit ……… ……… …….. £ 3.00 £ 2.50 Machine hours per unit: 3 hours for product X and 1.5 hours for product Y. Maximum demand: 30,000 units of product X, and 18,000 units of product Y. The total machine hours available: 105,000 hours Required: a) Using the Throughput Accounting method, determine the optimal production schedule, and calculate the Throughput Accounting ratios. Show all workings.
Accounting Alta Ltd. is manufacturing three products : A, B and C. The costs of manufacture are as follows Fixed costs of Alta Ltd. is $15,000. Calculate profit and do a CVP Analysis for Alta Ltd. Products Raw Material Labour Overheads Sales A 16,000 14,000 10,000 60,000 B 20,000 17,000 12,000 70,000 C 26,000 18,000 14,000 80,000
The prime cost for company XYZ was $20,000, while the conversion cost was $25,000. Assume that direct labor cost is three times the direct materials cost and that the manufacturing overhead cost was two times the direct materials cost. Calculate the direct materials cost ($). O a. 45,000 O b. 15,000 Oc. 5,000 O d. 10,000 O e. 30,000 Al-Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $56,000. Purchases of inventory as budgeted will cost cash payment during the period of $50,000. The Company intends to keep its cash balance at the end of the period at $10,000. Other operating expenses for this period are budgeted at $30,000, which includes $4,000 depreciation and any cash expenses are paid in the month incurred. How much borrowing will the company need in the Finis
Link Components plc manufactures 2 products for the manufacture of electric motor vehicles, X and Y. Cost information is as follows: X Y Selling price ……… ……… …….. £37.50 £42.00 Materials ……… ……… …….. £13.50 £31.50 Labour ……… ……… …….. £ 6.00 £ 2.50 Other variable costs ……… …….. £10.50 £ 2.00 Fixed costs ……… ……… …….. £ 4.50 £ 3.50 £34.50 £39.50 Profit ……… ……… …….. £ 3.00 £ 2.50 Machine hours per unit: 3 hours for product X and 1.5 hours for product Y. Maximum demand: 30,000 units of product X, and 18,000 units of product Y. The total machine hours available: 105,000 hours Required: c) Discuss five differences between a lean management approach to accounting and traditional management accounting.
Link Components plc manufactures 2 products for the manufacture of electric motor vehicles, X and Y. Cost information is as follows: X Y Selling price ……… ……… …….. £37.50 £42.00 Materials ……… ……… …….. £13.50 £31.50 Labour ……… ……… …….. £ 6.00 £ 2.50 Other variable costs ……… …….. £10.50 £ 2.00 Fixed costs ……… ……… …….. £ 4.50 £ 3.50 £34.50 £39.50 Profit ……… ……… …….. £ 3.00 £ 2.50 Machine hours per unit: 3 hours for product X and 1.5 hours for product Y. Maximum demand: 30,000 units of product X, and 18,000 units of product Y. The total machine hours available: 105,000 hours Required: b) The production manager at Link Components argues that by focusing exclusively on financial performance, accountants provide no real solutions for improving the firm. Critique this perspective.
The following costs relate to Antonio Industries for the last quarter: Conversion cost Direct materials Manufacturing overhead Selling and administrative expense onio's prime cost for last quarter? Bolooo 1000 05000 $75,000 2. Antonio's total manufacturing cost is a. P 460,000 b. P 645,000 C. P 650,000 d. P 840,000 P 435,000 215,000 190,000 185,000