Boat, inc. assembles custom sailboats from components supplied by

Question 3 – Classifying Manufacturing costs (L.0 – 2-1)

1.       Boat, Inc. assembles custom sailboats from components supplied by various manufacturers. The company is very small assembly shop and retail sales stores are housed in a Gig Harbor, Washington, boathouse. Below are listed some of the cost that are incurred at the company.

 

2.       REQUIRED:

 

Each cost, indicate whether it would most likely be classified direct labor, direct materials, manufacturing overhead, selling or an administrative cost.

a.       The wages of employees who build the sailboats.

b.      The cost of advertising in the local newspapers.

c.       The cost of an aluminum mast installed in a sailboat

d.      The wages of the assembly shop’s supervisor.

e.      Rent on the boathouse.

f.        The wages of the company’s bookkeeper.

g.       Sales commission paid to the company’s salespeople.

h.      Depreciation on power towels.

 

Question 4 – Variable cost behavior (LO 2-3)

Koffee Express operates a number of espresso coffee stands in busy suburban mall. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $.26.

 

REQUIRED:

a.       Fill in the following table with your estimates of the total costs and average cost per cup of coffee at the indicated levels of activity for a coffee stand. Round off of the cost of a cup of coffee to the nearest tenth of a cent Does the average cost per cup served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Explain.

 

 

                                                                                        1,800

  1,900                                                   2,000

Fixed Cost                                                           ?             ?         ?

Variable Cost                                                      ?             ?        ?

Total Cost                                                           ?              ?        ?

Average cost per cup of coffee                      ?              ?        ?

 

 

Does the average cost per cup served increase, decrease, or remain the same as the number increase? Explain?

 

 

 

Question 5 –  Preparing a Contribution Format Income Statement. (LO 3-1) Wheeler’s Corporation’s most recent income statement following:

                                                                                                Total

Per Unit

Sales (8,000)                               $208,000                                      $26.00

Variable expenses                     $244,000                                      $18.00

Contribution margin                      64.00                                          $8.00

Fixed expenses                                56.00                   

Net Operating Income             $      8,000

 

 

REQUIRED:

 

Prepare a Contribution format income statement under each of the following conditions (consider each case independently):

1.       The sales volume increases by 50 units.

2.       The sales volume declines by 50 units.

3.       The sales volume is 7,000 units.

 

 

Question 6 – Computing job costs (LO -4-3)

 

Weaver Company’s predetermined overhead rate is $18.00 per unit direct labor-hour and its direct labor wage rate is $12.00 per hour. The following information pertains to job A-200.

 

Direct materials………………………………..   $ 200

Direct labor……………………………………….. $ 120

 

REQUIRED:

 

1.       What is total manufacturing cost assigned to job A-200?

If Job A-200 consists of 50 units, what is average cost assigned to each unit included in the job?

 

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more