Ibrahim Corporation has the following estimated costs for the year: Direct Materials                   Rs. 20,000 Factory Rent                       Rs. 10,000 Sales Salaries                     Rs. 50,000 Factory Depreciation           Rs. 5,000 Direct Labor                        Rs. 25,000 Foreman’s Salary                Rs. 20,000        Indirect Material                  Rs. 4,000 Indirect Labor                      Rs. 3,000   Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:

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A: Related to sales revenue for such units sold, manufacturing costs for the units sold, and overall…

Q: XYZ Inc. Presented the following data for the first quarter of 2021: Prime Costs P560,000 Factory…

A: Solution 1:   For external reporting purposes, the amount of inventoriable costs must be = Prime…

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A: Variable cost is the cost which changes with the change in the output level. For example, material…

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A:

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A: Working note: Computation of cost of goods sold:

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A: Relevant cost to make = Direct materials + Direct labor + Variable manufacturing overhead +…

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A: Cost sheet is a method of allocating total cost into different categories such as direct material…

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A: Predetermined  overhead rate  = Estimated  factory  overhead/ Estimated factory  overhead

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A: Formula: Insurance expense = Per month amount x Number of months.

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A: Working notes :-                                   In the above problem along…

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Q: Cost Driver rate

A: Cost driver refers to the cost which is affected by some specific business activities and influenced…

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Q: brahim Corporation has the following estimated costs for the year: Direct Materials Rs. 20,000…

A: Formula used to calculate overhead rate per hour is as follow:

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Q: How much is the net income before tax

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A: Variable costs : Variable costs are expenses that vary in proportion to the volume of goods or…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.