please answer within 30 minutes. As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 4 clamps. The base is assembled from 1 clamp and 2 housings. Each clarmp has 1 handle and1 casting. Each housing has 1 bearing and 2 shafts. There is no inventory on hand.This exercise contains only parts b and c.The product structure is as follows:BracketBaseSpring 1)Clamp, 1lous ing 21ClarmpnHandleCasting ) BeuringShattHHandle Castingb) Determine the gross quantities needed of each item if you are to assemble 100 brackets.Base:units (enter your response as a whole number).Spring:units (enter your response as a whole number).Clamp: units (enfer your response as a whole number).Housing: units (enfer your response as a whole number).Handle: units (enter your response as a whole number).Casting: units (enter your response as a whole number).Bearing: units (enfer your response as a whole number).Shaft:| units (enfer your response as a whole number).

A bill for the list of the raw materials needed in a stepwise manner is known as a bill of material…

As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 4 clamps. The base is assembled from 1 damp and 2 housings. Each clamp has 1 handle an 1 casting. Each housing has 1 bearing and 2 shafts. There is no inventory on hand. This exercise contains only parts b and c. The product structure is as follows: Bracket Base Spring Clampyn Clampn landle, Casting Bearing Shatte Llandle Casting b) Determine the gross quantities needed of each item if you are to assemble 100 brackets. Base: units (enter your response as a whole numberj. Spring: O units (enter your response as a whole numberj. Clamp: units (enfor your response as a whole numberj. Housing: units (enfor your response as a whole numberj. Handle: units (enter your response as a whole numberj. Casting: units (enter your response as a whole numberj. Bearing:Ounits (enter your response as a whole numberj. Shaft: Ounits (enter your response as a whole number).

As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 1 spring, and 4 clamps. The base is assembled from 1 damp and 2 housings. Each clamp has 1 handle an 1 casting. Each housing has 1 bearing and 2 shafts. There is no inventory on hand. This exercise contains only parts b and c. The product structure is as follows: Bracket Base Spring Clampyn Clampn landle, Casting Bearing Shatte Llandle Casting b) Determine the gross quantities needed of each item if you are to assemble 100 brackets. Base: units (enter your response as a whole numberj. Spring: O units (enter your response as a whole numberj. Clamp: units (enfor your response as a whole numberj. Housing: units (enfor your response as a whole numberj. Handle: units (enter your response as a whole numberj. Casting: units (enter your response as a whole numberj. Bearing:Ounits (enter your response as a whole numberj. Shaft: Ounits (enter your response as a whole number).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

See similar textbooks

Similar questions

Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?
Anderson Company has the following departmental manufacturing structure for one of its products: After some study, the production manager of Anderson recommended the following revised cellular manufacturing approach: Required: 1. Calculate the total time it takes to produce a batch of 20 units using Andersons traditional departmental structure. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. What if the processing times of molding, welding, and assembly are all reduced to six minutes each? What is the production rate now, and how long will it take to produce a batch of 20 units?
Freidrich is working with the operations manager to determine what the standard material cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what material is used. The easiest material to measure is the wood. Each chest uses 5 board feet and produces 1.5 feet of scrap. He is not sure what to do with the scrap that is produced; the company cannot buy the boards in any other dimensions. What amount of materials should be included in the standard for material costs?
Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Welding is reduced to 6 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 10 units if the cell is in a continuous production mode?
Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 20 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Casting is reduced to 9 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 20 units if the cell is in a continuous production mode?
Bienestar Inc., has the following departmental structure for producing a well-known multivitamin: A consultant designed the following cellular manufacturing structure for the same product: The times above the processes represent the time required to process one unit of product. Required: 1. Calculate the time required to produce a batch of 15 bottles using a batch-processing departmental structure. 2. Calculate the time to process 15 units using cellular manufacturing. 3. How much manufacturing time will the cellular manufacturing structure save for a batch of 15 units?
Carolina Yachts builds custom yachts in its production factory in South Carolina. Once complete, these yachts must be shipped to the dealership. They have collected this shipping cost data: Prepare a scatter graph of the shipping data. Plot cost on the vertical axis and yachts shipped on the horizontal axis. Is the relationship between shipping costs and unit shipped approximately linear? Draw a straight line through the scatter graph. Using the high-low method, create the cost formula for Carolina Yachts shipping costs. The least-squares regression method was used and the analysis resulted in this cost equation: Y= 4,000+ 1,275x. Comment on the accuracy of your high-low method estimation. What would you estimate shipping costs to be if Carolina Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part B. Comment on how accurately this is reflected by the scatter graph you constructed. What factors other than number of yachts shipped do you think could affect Carolina Yachts shipping expense? Explain.
Suppose that Motorola uses the normal distribution to determine the probability of defects and the number of defects in a particular production process. Assume that the production process manufactures items with a mean weight of 10 ounces. Calculate the probability of a defect and the suspected number of defects for a 1,000-unit production run in the following situations. a. The process standard deviation is 0.15, and the process control is set at plus or minus one standard deviation. Units with weights less than 9.85 or greater than 10.15 ounces will be classified as defects. b. Through process design improvements, the process standard deviation can be reduced to 0.05. Assume that the process control remains the same, with weights less than 9.85 or greater than 10.15 ounces being classified as defects. c. What is the advantage of reducing process variation, thereby causing process control limits to be at a greater number of standard deviations from the mean?
A trainee management accountant has been helping a client with choosing the best products to make by ranking the client's products as above The limiting factor is materials and this is limited to a maximum of 95,000kgs .he is not sure how to calculate and create the optimal production plan. Help the trainee and calculate the number of products that need to be made Enter your units to the nearest whole number with no commas
Planet Fit, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: LOADING... (Click the icon to view the data.) The weight-lifting craze suggests that Planet Fit can sell enough of either Model 9 or Model 14 to keep the plant operating at full capacity. Both products are processed through the same production departments. Read the requirements LOADING... . Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. (Reduce the fixed manufacturing overhead to the lowest possible ratio of machine hours in order to calculate the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) Model 9 Model 14 - = Contribution margin per unit ÷ = Contribution margin…
Vic Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver: 2019 2020 Units produced and sold 6,800 5,600 Direct manufacture labor-hours 136,000 115,200 Direct materials used (tons) 29,000 24,400 Direct manufacture cost per hour $21 $22 Direct materials cost per ton $431 $443 What is the partial productivity for direct materials for each year? What is the partial productivity for direct manufacturing labor for each year? What is the total factor productivity for each year?
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 97,500 $27,165,000 112,500 29,715,000 124,500 31,755,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the variable cost per unit and the total fixed cost. Round your answer for variable cost to the nearest cent. Round your answer for total fixed costs to the nearest dollar. Variable cost: $fill in the blank 2 per unit Total fixed cost: $fill in the blank 3 Based on part (a), estimate the total cost for 80,000 units of production. Round your answer to the nearest dollar. Total cost for 80,000 units: $fill in the blank 4