) Panther Sports Inc. manufactures custom sports equipment for a variety of uses
ID: 2407289 • Letter: #
Question
) Panther Sports Inc. manufactures custom sports equipment for a variety of uses. The foliowing data have $7-500. There were 85 machine hours used on this job. The machine hour used. There were 123 direct labor hours worked on this job at a direc recorded for Job 1005, which was recently completed. Direct materials used cost predetermined ovethead rate is $34 per rate of $21 per hour What is the total manufacturing cost of Job 10057 A) $15,925 B) $12,973 C) $10,083 D) $5,473 23) In the basic flow of inventory through a manufacturing system, in a job costing system? which of the following occurs first23) A) Cost of goods sold C) Finished goods inventory B) Work in process inventory D) Raw materials inventory 24) When management reviews product sales reports to set goals and objectives and then evaluates 24) the results of sales operations against the plan and performance results, which of three primary responsibilities is fulfilled? A) Directing, controlling, and planning C) Directing and planning B) Controlling and planning D) Analyzing, directing, and planning 25) When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibílatics is being performed? A) Adjusting B) Planning C) Controlling D) Directing 26) Service firms develop a predetermined rate for some costs. This rate is called the 26) A) direct cost rate. C) labor rate. B) indirect cost allocation rate. D) hourly cost rate. 27) Panther Fumiture Company manufactures furniture at its central Miami factory. Some of its costs 27) from the past year include: $105,200 $15,800 $7500 $21,000 53600 $12,800 $62,400 $18,700 $26,400 Wa to -line workers Lumber used to build product Insurance costs for factory Freight-in (on raw materials) Utilities in factory su tion on factory Utilities in sales office Costs of delivery to customers $1400 tion on sales otfice $600 Lubricants used in factory equipment Direct labor costs for Panther Furniture Company totaled D) $167,600 C) $234,100 A) $105,200.Explanation / Answer
Ans:
22.)
Total manufactring cost includes cost incurred to manufacture a product. It includes Material Cost, Labour Cost and other expenses which are dirctly or indirectly related to manufactring of a product which are called overheads, these can be fixed or variable. Total Manufacturing cost can be calculated as follows:
Direct Material = $7.500
Variable Overheads = 85*34 = $2,890
Direct Labour = 123*21= $2,583
Total Manufacturing cost = $12,973
Ans is Option B
23.)
Ans is Option D Since to manufacture any goods, we needs its basic ingredients to start manufacturing process which are known as raw material, so thats why Raw Material Inventory occurs first in job costing system.
24.)
Ans is Option D since first managment will analyse the result to check what are its week area or markets where it is not performing as per plan and then make necessary changes in plan and direct the staff to work accordingly. So by reviewing prdouct sales reports it first analyse its current posotion then direct the staff and plan accordingly.
25.)
Ans is Option B since whether to perform a action or not comes under planning resposibility, directing and controlling are actionable resposibilities whereas planning is decision making responsibility.
26.)
Ans is Option B since predetermined rate is developed for cost which can not be direclty allocated to a product. These expenses occured to support the manufacrting process such as supervisor salary, electricity expenses, rent of a building etc, So Indirect cost allocation rate is predetermined rate developed by a firm.
27.)
Ans is Option B $ 105,200
since direct labour cost is directly related to production of goods and are wages or salaries paid to workers or employees who are responsible for manufacturing of a product. In the given question, only assembly line workers are dirctly related to manufacuting of furniture so their wages are direct labour cost. Wages to maintenance workers are not direct labour cost since they are not resposible for manufacturing of furniture. Such expenses are indirect expenses which are allocated on a perdeternimed rate.
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