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- Dahl Corporation has just built a machine to produce car doors. Dahl had to build this machine because it couldn’t purchase one that met its specifications. The following are the costs related to the machine’s construction and the first month of operations: • Construction materials, $20,000 • Labor, $9,000 (construction, $3,000; testing, $1,000; operations, $5,000) • Engineering fees, $5,000 • Utilities, $4,000 (construction, $1,000; testing, $1,000; operations, $2,000) What is the initial value of the machine? a. $28,000 b. $29,000 c. $31,000 d. $38,000Garcia Company has 11,500 units of its product that were produced at a cost of $172,500. The units were damaged in a rainstorm. Garcia can sell the units as scrap for $34,500, or it can rework the units at a cost of $54,000 and then sell them for $71,100.W bought a new printing machine. The cost of the machine was $80,000. The installation costs were $5,000 and the employees received training on how to use the machine, at a cost of $2,000. Before using the machine to print customers' orders, a test was undertaken and the paper and ink cost $1,000. What should be the cost of the machine in the company's statement of financial position?
- W bought a new printing machine from abroad. The cost of the machine was $80,000. The installation costs were $5,000 and the employees received specific training on how to use this particular machine, at a cost of $2,000. Before using the machine to print customers' orders, a test was undertaken and the paper and ink cost $1,000. What should be the cost of the machine in the company's statement of financial position?An industrial company has (20) machines, and every malfunction that costs the company 180 dinars to be repaired includes repair costs and maintenance services. In addition to (0.10) of the working time for each working day, noting that each delay for one working day costs the company (8000) dinars, and the company responsible for the preventive maintenance program provided it after the daily working hours at a cost of (300) dinars per machine, and thus loss can be avoided. The working day, and the holidays possibilities have been estimated as shown in the following table: Required: 1- Calculating the cost of repairing the malfunction during work (remedial maintenance) 2- Calculating the cost of a preventive maintenance policy or program if it is followed every month, and if it is followed every three months. 3- Determine what is best for the company? Do you choose a curative maintenance policy or preventive maintenance? By the body in charge of this?…Dinoco manufactures racing products in a manufacturing facility with a total of 25,000 square feet of theoretically usable space. However, they can only practically use 80% of that space for production. During 2021, the company incurred $120,000 in direct materials and $80,000 in direct labor. Total overhead costs associated with the manufacturing facility were $321,000. If Dinoco only actually used 15,000 square feet of space during the year, what was their cost of unused capacity? (round to the nearest dollar) ***CORRECT ANSWER IS 80,250. PLEASE EXPLAIN HOW STEP-BY-STEP***
- Allegiance, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell the goods "as is" for $45,000; alternatively, the goods can be cleaned and shipped to the firm's outlet center at a cost of $23,000. There the goods could be sold for $80,000. What alternative is more desirable and what is the relevant cost for that alternative?Karl has been hired to install a new air conditioning system in a building. The total cost of the project is $14,000. Karl charges $1,500 for labor plus 1/6 of the cost of the equipment and supplies. If Karl's expenses for the equipment and supplies are $4,000 more than his estimate, how much did the equipment and supplies cost? MmhnmkuuhbjjVerde Company reported operating costs of 50,000,000 as of December 31, 20x5, with the following environmental costs: Required: 1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. What is the message of this report? 2. Prepare a pie chart that shows the relative distribution of environmental costs by category. What does this report tell you? 3. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? Offer possible reasons for this decision. If consciously avoided, is this decision unethical?
- Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage and trash from residential customers. To facilitate the collection, Basuras places a large plastic container with each household. Because of wear and tear, growth, and other factors, Basuras places about 200,000 new containers each year (about 20% of the total households). Several years ago, Basuras decided to manufacture its own containers as a cost-saving measure. A strategically located plant involved in this type of manufacturing was acquired. To help ensure cost efficiency, a standard cost system was installed in the plant. The following standards have been established for the products variable inputs: During the first week in January, Basuras had the following actual results: The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in January. Also, a new manufacturing process was implemented on a trial basis. The new process required a slightly higher level of skilled labor. The higher- quality material has no effect on labor utilization. However, the new manufacturing process was expected to reduce materials usage by 0.25 pound per container. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Assume that the 0.25 pound per container reduction of materials occurred as expected and that the remaining effects are all attributable to the higher-quality material. Would you recommend that the purchasing agent continue to buy this quality, or should the usual quality be purchased? Assume that the quality of the end product is not affected significantly. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Assuming that the labor variances are attributable to the new manufacturing process, should it be continued or discontinued? In answering, consider the new processs materials reduction effect as well. Explain. 3. CONCEPTUAL CONNECTION Refer to Requirement 2. Suppose that the industrial engineer argued that the new process should not be evaluated after only one week. His reasoning was that it would take at least a week for the workers to become efficient with the new approach. Suppose that the production is the same the second week and that the actual labor hours were 9,000 and the labor cost was 99,000. Should the new process be adopted? Assume the variances are attributable to the new process. Assuming production of 6,000 units per week, what would be the projected annual savings? (Include the materials reduction effect.)A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
