2. Three different products are manufactured in an existing batch process. The details are as follows: Product Value Product kg/batch Batchesly ($/kg) A 5000 5.5 20 1500 6.25 13 C 3000 5.75 16 The cost of manufacturing is $0.75 million/y. The demand for these products is increasing, and the crystallization step has been determined to be the bottleneck to increasing the capacity. It is desired to add 25% capacity to this process. The internal hurdle rate for process improvements is 17% p.a. over five years.
Q: ABC Company produces Product X, Product Y, and Product Z. All three products require processing on…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: A company manufactures and markets three products that are made from the same set of machines.…
A: The following computations are done for the company manufacturing products A, B and C.
Q: Johnson Corp. has two divisions, Division A and Division B. Division B has asked Division A to…
A: Minimum acceptable transfer price between divisions are based on excess capacity available: If there…
Q: Use this information for Jefferson Company to answer the question that follow. Materials used by…
A: When a product has been purchased from outsider and same can be made by one of our own division in…
Q: Cobe Company has already manufactured 20,000 units of Product A at a cost of $30 per unit. The…
A:
Q: Two different manufacturing processes are being consideredfor making a new product. The first…
A: The question is based on concept of break even point or break even sales to compare two production…
Q: Paste Corporation has established new plant for the production of new product called “Diazinon”.…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Each product can be processed further after the split-off point. Additional processing requires no…
A: Here we will take decision on basis of additional revenue and additional costs
Q: Leonard International produces weekly 20,000 units of Product N and 40,000 units of Product B for…
A: In the joint processing of products, products can be split off after a particular point. After that,…
Q: A new biomaterial used for prosthetic devices was developed by engineers in the laboratory that…
A:
Q: JENNY Company produces three products (X, Y, and Z) in a joint process costing P100,000. The…
A: Formula: Incremental profit = ( Sales price after further processing x Units volume ) - ( Sales…
Q: The firm manufactures a product with the following costs: Direct materials→₱14.00; Direct…
A: Absorption Costing: Absorption costing is a form of costing that takes into account all of the…
Q: The Parts Division of Ram Company produces units that can either be sold to outside customers or…
A: When in division accounting, each division is responsible for maintaining its profitability, the…
Q: Materials used by Square Yard Products Inc. in producing Division 3's product are currently…
A: Income statement forms a part of financial statements and are prepared to ascertain the…
Q: We have been producing product A for several years and look forward to several more years of sales…
A: The decision to purchase a new equipment can be made by analyzing the costs to be saved by the new…
Q: The management of International Aluminum Co. is considering whether to process aluminum ingot…
A: First calculate the total costs and revenues: Formulation as shown below:
Q: a. How many pounds of raw material are needed to make one unit of each of the two products? b. What…
A: Contribution margin: The contribution margin is computed based on the sale price subtracted with…
Q: Hint : Since standard and actual outputs are both 1,080 units, standard quantiti can be used as they…
A: Standard Costing:- In this costing, the actual performance of the operation gets to compare with the…
Q: The Southern Division of Barstol Company makes and sells a single product, which is a part used in…
A: The lowest acceptable transfer price from the standpoint of the Southern Division should be closest…
Q: Management at Kirkland Machine Tool Co. is considering the development of a new automated drill…
A: Products target cost would be the cost which the management should incur on producing the product.
Q: Wilmington Chemical Company produces three products: ethylene, butane, and ester. Each of these…
A: Production Bottleneck: Production Bottleneck is a situation of constraint in the manufacturing…
Q: Sara James Bakery, described in Examples S1 and S2, has decided to increase its facilities by adding…
A: Expected production is the estimated production that a business assumes to produce during a period…
Q: Davao Company is considering the introduction of a new product. As one dep in its study of the new…
A: Total costs of the business includes fixed costs and variable costs of the business. Markup is the…
Q: company is producing a high-volume item that sells for PhP 0.75 per unit. The variable production…
A: Solution: Part a) Annual savings from the purchase of the new machine will be given as follows: The…
Q: Johnson Corp. has two divisions, Division A and Division B. Division B has asked Division A to…
A: Introduction: Transfer pricing is the pricing of products and services sold between controlled (or…
Q: The management of International Aluminium Co. is considering whether to process aluminum ingot…
A: Process Costing: It is the method in which the cost of a product is determined on the basis of the…
Q: SAMCIS Company produces three products (X, Y, and Z) in a joint process costing P100,000. The…
A: Joint cost refers to the total cost of different products jointly. It can be allocated on the…
Q: 1. A minimum company will produce drinks of type XYZ. From the data for the last 1 month, the…
A: Given, Biggest demand = 6000 bottles per day Smallest demand = 500 bottles per day Stock (max)…
Q: selling price based on the absorption costing approach
A:
Q: A company is analyzing a make-versus-purchase situation for a component used in several products,…
A:
Q: In EXON Inc. division A is a profit centre that produces three items, X, Y and Z. Each item has an…
A: The manufacturing cost of four products are given. Required Calculate Transfer price if 5600 hours…
Q: Waiting times, manufacturing cycle times. The Sandstone Corporation uses an injection molding…
A: 1a.
Q: CM ratio and variable expenses ratio. If Paste Corporation uses the: Process base manufacturing…
A: CM Ratio: It means the Cost-Margin ratio. It shows the difference between sales and the variable…
Q: Division C also produces two product lines. Because the division can sell all of the product it can…
A: Contribution Margin = Sales - Variable Costs Contribution Margin Ratio = Contribution Margin / Sales
Q: Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The…
A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…
Q: AXY LTD company is planning to use the economic order quantity model to determine the optimal order…
A: Economic order quantity is referred to as optimal quantity at which the inventory related costs are…
Q: One hundred pounds of raw material W is processed into 60 pounds of X and 40 pounds of Y. Joint…
A: Additional revenue = Revenue from sale of product Z - Revenue from sale of product Y = (30 pounds x…
Q: 6. Materials used by the Instrument Division of XPort Industries are currently purchased from…
A: Internal transfer means where one independent department is transferring the goods to another…
Q: Salam's company expects its production of pipes will require 600,000 tons of aluminum over its…
A: Economic order quantity is referred to as that level of the inventory which would generate the least…
Q: After several years producing and selling at a capacity of 50,000 units, Milton Company faced a year…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Helena Company needs to increase its profits and so has embarked on a program to increase its…
A: Profit-linked productivity measure: It measures the change in profits due to increase in the…
Q: Oakwood Company produces maple bookcases. The following information is available for the production…
A: 1.
Q: decides which of three mutually exclusive products to make in its roducts is shown in the following…
A: Throughput return ratio refers to the form of ratio which reflects the comparison between the actual…
Q: 4. Leaton Co introduced a new product, LD to its range last year. The machine used to mould each…
A: Discounted Payback Period: It is the time taken to have equal amount of discounted value of…
Q: Please explain each anwer with formula. Regarding the following information, how many machines would…
A: Given,
Q: NUBD Co. produces two products from a joint process.Information about the two joint products as…
A: Profit (loss) per unit on Product X on further processing = (Selling price after further processing…
Step by step
Solved in 4 steps
- 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your perce 3. What percentage of the throughput time was spent in non-value-added activities? (R whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final ar 5. If by using Lean Production all queue time during production is eliminated, what will b answer to 1 decimal place.)Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. What value should the output be transferred to process 2?Suppose that the total cost function, in dollars, for the production of x units of a product is given by the equation shown below. C(x) = 4,500 + 30x + 0.2x² Then the average cost of producing x items is represented by the following equation. total cost 4,500 C(x) + 30 + 0.2x (a) Find the instantaneous rate of change of average cost with respect to the number of units produced, at any level of production. (b) Find the level of production at which this rate of change equals zero. X = (c) At the value found in part (b), find the instantaneous rate of change of cost and find the average cost. instantaneous rate of change of cost average cost What do you notice?
- Schurz Corporation's management reports that its average delivery cycle time is 29 days, its average throughput time is 13.0 days, its manufacturing cycle efficiency (MCE) is 0.20, its average move time is 0.6 day, and its average queue time is 3.0 days. Required: a. What is the wait time? (Round your answer to 1 decimal place.) b. What is the process time? (Round your answer to 1 decimal place.) c. What is the inspection time? (Round your intermediate calculations and final answer to 1 decimal place.) a b C Wait time Process time Inspection time days days daysSolve the problem. 6) At a manufacturing plant, the total cost (in dollars) to produce x items is C(x) = 2.04x + 2710. What is the average cost per item?Sheridan Company gathered the following data about the three products that it produces: Present Estimated Additional Sales Value Processing Costs if Processed Further Estimated Sales Product $7400 $19200 $10800 A 12800 4400 B 16200 9800 C 14200 2400 Which of the products should not be processed further? O Product C O Products A and C OProduct B OProduct A
- The number of set ups is the cost driver for production scheduling and machine set ups. The number of set ups for three products are as follows: Number of set-ups is X=240, Y=260 and Z=300. If the cost of production scheduling is GH¢1.2 million and the cost of ordering is GH¢1.8 million, how much of the production scheduling should be charged to Y?A. GH¢390,000B. GH¢360,000C. GH¢702,000D. GH¢500,000Consider the following cost and pricing data of ABC Corp. on its Product X: Price: P120.00.per unit Profit Contribution: P90.00 Proposed additional Cost: P3 per unit (for quality improvement) Current Profits: P2.4 million Sales: 100,000 units. Assuming that average variable costs are constant at all output levels, find ABC Corp.’s total cost function before the proposed change.Calculate the total cost function if the quality improvement is implemented.Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million.An industrial product can be manufactured by two different methods of production. Using Method X, fixed costs are RM455,000 and variable costs are RM15 per product. Using Method Y, fixed costs are RM395,000 and variable costs are RM21 per product. At what volume of output, would the two methods incur the same costs. O 23,610 units O 10,000 units O 15,000 units O 16,600 units
- Mozaic Inc. has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system (CAM) or a labor-intensive production system (LIP). The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: www CAM System LIP System Direct Material $5.00 $5.60 Direct Labor (DLH) 0.5 DLH x $12 $6.00 0.8 DLH x $9 $7.20 Variable Overhead 0.5 DLH x $6 $3.00 0.8 DLH x $6 $4.80 Fixed Overhead* $2,440,000 $1,320,000 * These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has recommended an introductory unit sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit sold. (Ignore income taxes.) Required: 1. Describe the circumstances under which the firm should employ each of the two manufacturing methods. 2. Identify some business…The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15XPlease show me your solution so I can check if mine's correct. Thank you. ABC Corporation manufactures products W, X,Y, AND Z from a joint process. Additional information is as follows: Sales If processed further Units Value at Additional Sales Product Produced Split-off Costs Value W 6,000 P 80,000 P 7,500 P 90,000 X 5,000 60,000 6,000 70,000 Y 4,000 40,000 4,000 50,000 Z 3,000 20,000 2,500 30,000 Total 18,000 P200,000 P20,000 P240,000 Assuming that total joint costs of P160,000 were allocated using the relative sales value at split- off approach, what joint costs were allocated to each product? W________________ X__________________ Y________________ Z __________________