4541 Answer Key Midterm W13

12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed on a per unit basis?

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

I’m glad you asked this question. It’s a simple but important answer. I’m just going to clarify a couple of math rules for you:

(TCO 6, 7) The local newspaper reports that a middle school had been broken into, damaged, and vandalized to the tune of $50,000. Security cameras show the vandals were four high school students, three of whom are on the honor roll. Compare and contrast the explanation given by labeling theory to the explanation given by anomie theory of deviance.

The receiving overhead per unit of Valves produced = (0.03 X 20,000)/ 7500 = $0.1

| | | | | | | | | | | | | |75000 | |100000 | |125000 | |150000 | |175000 | |200000 | | |  | |  | |  | |  | |  | |  | |Direct Labor |4.00 |  |3.90 |  |3.80 |  |3.70 |  |3.80 |  |4.00 | |Material |2.00

CC cost p/unit = ($3,800 + $1,975) / (2,400 + 1,600 + 3,000 + 2,625) = $5,775 / 9,625 equivalent units = $0.60

b. If we assume 2004 prices of 45.91 €/mtt. What does the new break-even level do to the utilization rate, given its new capacity level? What can you say about its effect upon Aget’s pricing?

$100000 + No. of employees * $25000 = No. of employees * Volume of sales * Selling Price * (0.10 - 0.05)

The product my business has chose to produce is water bottles. After some research it can be said that the typical production cost of one water bottle unit is $20. Total fixed costs for my company including rent and utilities are $4000 per month. Given these numbers a linear cost function for my product can be constructed; C(x) = 20x + 4000. In this equation x represents water bottles produced each month at a price of $20 along with $4000 of total fixed costs. An estimated total cost per month can then be determined of $120,000 looking at what the company can afford. Using the cost function C(x), we can plug in 120,000 to then determine the number of water bottles produced each month, which will be x. The beginning equation is C(120000) = 20x + 4000, begin by subtracting 4000 from each side leaving us with 116000 = 20x then divide both sides of the equation by 20 to get a final answer of x = 5800. This is the number of bottles produced each month.

6. Calculate the volume-based (traditional) cost per reel for grades A-D identified in Exhibit 1.

Simple Simon’s current financial situation is tenuous. The company is producing 6,000 units per month, but after all variable and fixed costs, they are losing $40/month. The company’s labor costs are extraordinarily high. The current labor cost is $23.33/unit, which is 72.9% of the $32 sales price (See attached Table 1).

Total Fixed Cost = $59,000 − ( $12 × 3,000 ) = $38,000 − ( $12 × 1,250 ) = $23,000

RF = (R5T5 – R4T4)/(T5 – T4) = [(4.5% x 5) – (4.2% x 4)]/(5 – 4) = 5.70%

80L/day 80 X 365=29200 29200 X 6= 175200 CHF/year 6. Various costs (50% of the yearly detergent costs)