Signatron Corporation

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

Martinez Company’s relevant range of Production is 7,500 to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:

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

blending labor). If you divide the total cost of $68,094 by the volume produced from a batch, 169,088oz, you

There are four products you produce at the studio: Patterned glasses, Paperweights, Wrapped tumblers and Vases. Based on amount of a batch mix and average number of units produced, I calculated Direct Materials per Unit as following:

Company Wide Overhead Rate equal Forecast Overhead divided by Expected Machine Hours Overhead Rate equal $480,000 equal $6 per machine hour 80,000. Company Wide Rate: Direct Material Costs x Batch Size plus Direct Labor Costs x Batch Size Maxiflow: Alaska: 135 x 20 equal 2700 110 x 20 equal 2200 75 x 20 equal 1500 95 x 20 equal 1900 equal $4200 per batch equal $4100 per batch Departmental Rate. Direct Materials Costs plus Direct Labor Costs divided by Each Department Hour Maxiflow: 135 plus 75 equal $210 Radiator Parts Fabrication: 210 divided by 28 equal $7.50 per batch Radiator Assembly, Weld, and Test equal 210 divided by 30 equal $7 per batch Compressor Parts Fabrication: 210 divided by 32 equal $6.60 per batch Compressor Assembly and Test: 210 divided by 26 equal $8.10 per batch Alaska: 110 plus 95 equal 205 Radiator Parts Fabrication: 205 divided by 16 equal $12.80 per batch Radiator Assembly, Weld, and Test: 205 divided by 74 equal $2.70 per batch Compressor Parts Fabrication: 205 divided by 8 equal $25.60 per batch Compressor Assembly and Test: 205 divided by 66 equal $3.10 per batch. There was only a $100 difference between Maxiflow and Alaska when it came to company-wide rates per batch.

Thirdly, at the product activity level, the two Operations costs are likely to vary mainly with the Number of Units Produced and the three Sales costs are also likely to vary mainly with the Number of Units Produced.

In the current situation, the order is set to every Monday which means a total number of 50 orders for the whole period, and the average Inventory calculated from the given data is 5 units. Therefore, total cost of the current situation calculation will be as follows:

shipments x 500$ 70 nr. shipments x 500$ 220 nr. shipments x 500$ number of units per batch total overhead cost overhead cost / unit cost per unit

was 7,920 units. The company has provided the following data concerning the formulas to be used in its

* Refer sheet “30000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 30000.

10^(1.5986  +  (-­‐.323)*  Log(MxCrtn/Yr))   Predicted  vs.  Actual   $0.220 FC / Unit $0.200 $0.180 $0.160 $0.140 $0.120 0 20,000,000 40,000,000 Max Carton Capacity / year 60,000,000 Effect  on  Total  DC   Cost   Fixed and Variable DC Costs Sensitivity Parameters BC Current Sq Ft. (1000) 603 Capacity Carton/Yr 22,117,639 FC / Unit at Full Cap $0.168 Var Cost*

1. Is the company correct in its practice of not manufacturing standard model compressors on Sundays because of the accounting loss incurred on each unit?

budget for production costs and expenses, and for changing the curent portion packs. There are two

2. The total expected cost per unit was $205.7 per unit and the actual cost per unit was $211.93 per unit. See Exhibit 2.