Ask Question, Ask an Expert


Ask Accounting Basics Expert

Q1) Downes Consolidated Industries International utilizes standard cost system and records standards in  accounting records. Standard costs for one of its products are given below.

Direct materials, 3 lbs. @ $20 per lb.  $60.00
Direct labor, 2 hrs. @ $15 per hr. 30.00
Variable overhead, 4 machine hrs. @ $1 per hr. 4.00
Fixed overhead, 4 machine hrs. @ $2.50 per hr. 10.00
Total $104.00

Overhead is applied on the basis of machine hours. Planned level of activity (denominator level) is= 320,000 machine hours. Total budgeted fixed overhead is= $800,000.

Other budgeted items are:

Units selling price, $175.00 per unit
Variable selling & administrative expenses, $5 per unit.
Fixed selling & administrative expenses, $160,000.
Planned level of production and sales, 80,000.


Direct materials purchased, 250,000 lbs. @ $22 per lb.
Direct materials used, 240,000
Direct labor, 150,000 hrs., total cost, $2,225,000
Variable overhead, $340,000
Fixed overhead, $810,000
Units produced, 82,000
Units soldd, 80,500
Selling price per unit, 160.00
Variable selling & administrative expenses, $410,000.
Fixed selling & administrative, $175,000.
Actual machine hours, 330,000.


Make the Income Statement of Actual Results by using Variable costing.

1. Compute the breakeven point in dollars.

2. Compute DOL.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918706

Have any Question? 

Related Questions in Accounting Basics

Compare all three balance sheets on the basic grounds of

Compare all three balance sheets on the basic grounds of accounts and differences. 1. HDFC 2. Infosys and 3. Tata Steel. Balance sheets -

In this assignment complete sections iii and iv of the

In this assignment, complete Sections III and IV of the project. For this part of the assessment prepare a Word document that addresses the critical elements below. Make sure answer each question in a substantive way and ...

Accounting for business decisions group assignment the

Accounting for Business Decisions Group Assignment The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage ...

Learning outcomeson successful completion of this

Learning Outcomes: On successful completion of this assignment, students will be able to: - Recognise the laws relating to companies in Australia; and - Examine the duties, rights and responsibilities of company officers ...

Why do organizations have internal audits compliance audits

Why do organizations have internal audits, compliance audits, or operational audits performed? Provide examples of what type of organization might have each of these audits and for what purpose? Who would want this infor ...

Accounting management and cost decisionsproduct costing

Accounting, Management, and Cost Decisions Product Costing Systems For the list of product manufacturers below, indicate whether a job-cost system (J) or a process cost system (P) would be most  appropriate. a. Chemicals ...

Accounting information systems assignment-the processes of

ACCOUNTING INFORMATION SYSTEMS ASSIGNMENT- The processes of selecting an AIS/ERP to make informed decision for investment in an accounting software. Group Assignment Scenario- B Bakery is a family owned firm with around ...

Question list the penalties imposed on the employer for the

Question: List the penalties imposed on the employer for the following: a. Filing Form 941 late. b. Seven days late making a deposit. c. Issuing a bad check to the IRS.

Obtain the 2012 10-k annual report for overland storage inc

Obtain the 2012 10-K Annual Report for Overland Storage, Inc. (OVRL). Refer to Note 1 on page F-7. Based on management's discussion in the note, what type of audit report did Overland's audit firm likely issue? In this s ...

Practice questionsin what circumstances would you recommend

Practice questions: In what circumstances would you recommend the use of the machine hour overhead absorption rate?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate