1. Using budget data, how many motors would have to be sold for Waltham Motors Division to break even?
Budgeted CM / Budgeted units sold = $351,200 / 18,000 = $19.51 per unit
Budgeted FC / 19.51 = 260,000 / 19.51 = 13,326 units
2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production? What was the actual per unit cost of production and shipping?
Total budgeted costs (both variable and fixed) = 512,800 + 26,000 = $772,800 Total budgeted units = 18,000 Total expected cost per unit =
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| |Budgeted |Actual |Variance |
|Units |14,000 |14,000 |-- |
|Sales |$672,000 |$686,000 |$14,000 U |
|Variable Manufacturing costs: | | | |
| Direct material |84,000 |85,400 |1,400 U |
| Direct labor |224,000 |246,000 |22,000 U |
| Indirect labor |44,800 |44,400 |400 F |
| Idle time |11,200 |14,200 |3,000 U |
| Cleanup time |8,400 |10,000 |1,600 U |
| Miscellaneous supplies |4,044 |4,000 |44 F |
| Total variable manufacturing costs |376,444 |404,000
Q6: How much production fixed expenses should be allocated to 1 kg of "complete meal"? Give a specific number and your logic to support the
Question 1: Using budget data, how many motors would have to be sold for Waltham Motors Division to breakeven?
The most suitable costing method Yeltin should adopt is the practical capacity in order to remove the factor of uncertain budgeted sales figure. For this approach and the practical capacity of 65000-22000 units, then the revised overhead costs come out to be $30. With the inclusion of material and labor costs, the cost of the cartridge stand at $52 and the additional royalty expense of $10 raises the overall per unit cost to $62. The selling price of the cartridge is fixed at $150. With this selling price, the gross margin is equal to $88. The gross margin percentage is equal to 59%. In comparison to the budgeted volume, the gross margin has increased by 14%. See below
1) Estimate the WACC that is appropriate for discounting the Collinsville plant’s incremental cash flows. You should estimate and present each component of the WACC separately, explaining briefly but clearly what assumptions you are making for each of them. In the same spirit, estimate the appropriate all-equity cost of capital for the APV-based valuation.
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
Q.1) Compute the following quantities for the current production process as well as for Mike’s and Ike’s plans, assuming the plans are implemented as described in the case.
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3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?
shipments x 500$ 70 nr. shipments x 500$ 220 nr. shipments x 500$ number of units per batch total overhead cost overhead cost / unit cost per unit
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