Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manuf
acturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 9,000 7,000 Units sold during the year 6,000 7,000 Units in ending inventory 3,000 3,0000.
The unit product cost under absorption costing in Year 1 is closest to:
a.$35.00
b.$31.00
c.$7.00
d.$24.00
The unit product cost under absorption costing in Year 1 is closest to:
a.$35.00
b.$31.00
c.$7.00
d.$24.00
1 answer:
Answer:
Answer for the question:
Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 53 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials $ 13 Direct labor $ 6 Variable manufacturing overhead $ 5 Fixed manufacturing overhead per year $ 63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 4 Fixed selling and administrative expense per year $ 71,000 Year 1 Year 2 Units in beginning inventory 0 3,000 Units produced during the year 9,000 7,000 Units sold during the year 6,000 7,000 Units in ending inventory 3,000 3,0000.
The unit product cost under absorption costing in Year 1 is closest to:
a.$35.00
b.$31.00
c.$7.00
d.$24.00
Is given in the attachment.
Explanation:
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Answer:
(1) 2,28 units
(ii) 1,414 units
(iii) Minimum stock is less than EOQ.
Explanation:
(1) Units Ordered each time
where,
A = Annual Requirement =40,000 Units
O = Ordering Cost = $200 Per unit
Minimum Stock for lead time:
= (40,000 Units × 10) ÷ 365
= 1096 (Approximately)
C=Annual Carrying cost per unit = $40 × 10% × 1/2
= 2
= 2828 Units
(2) Average Inventory = EOQ ÷ 2
= 2828 Units ÷ 2
= 1,414 Units
(3) If the Lead time Increase 10 to 15 days:
Minimum Stock Need to be Maintained:
= Avg Daily Demand × Lead time
= (40,000 Units ÷ 365) × 15
= 1,644 Units
Minimum Stock is Less the EOQ , then Increasing Lead time to 15 Days Does not Have effect on EOQ.
Answer:
1. U. None of these
2. Variable overhead price variance = $2,000 F
Variable overhead efficiency variance = $4,000 U
Explanation:
Please see attachment.
