Aa.6. Problem 3-5 (Algo)Best Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Assume that BestBicycles operates two shifts, each with 1,700 hours per year.BikeTiny TikeAdult AeroMountain MongerDemand Forecast(units/year)43,80050,25029,550Number of assembly linesProcessing Time(minutes/unit)11.412.013.7Lot Size(# of bikes)243030Setup Tine(minutes/setup)306040Click here for the Excel Data FileCalculate the required capacity for this year's production. Note that the times are given for assembly lines, so capacity calculationsshould be in terms of the number of lines necessary. (Round up your answer to the next whole number.)

Process capacity refers to the technique which states the operators or machines capabilities in the…

Best Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Assume that Best Bicycles operates two shifts, each with 1,700 hours per year. Bike Tiny Tike Adult Aero Mountain Monger Demand Forecast (units/year) 43,800 50,250 29,550 Click here for the Excel Data File Processing Time (minutes/unit) 11.4 12.0 13.7 Lot Size (# of bikes) 24 30 30 Setup Tine (minutes/setup) 30 60 40

Best Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Assume that Best Bicycles operates two shifts, each with 1,700 hours per year. Bike Tiny Tike Adult Aero Mountain Monger Demand Forecast (units/year) 43,800 50,250 29,550 Click here for the Excel Data File Processing Time (minutes/unit) 11.4 12.0 13.7 Lot Size (# of bikes) 24 30 30 Setup Tine (minutes/setup) 30 60 40

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.2E: The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufacturer, Baxter...

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Required information E5-4 and E5-5 [LO 5-1, 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 8,100 Utilities ($100 fixed) 560 Supervisor’s salary 2,900 Maintenance ($350 fixed) 500 Depreciation 750 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove’s linear cost equation for a production level of…
Required information E5-4 and E5-5 [LO 5-1, 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 8,100 Utilities ($100 fixed) 560 Supervisor’s salary 2,900 Maintenance ($350 fixed) 500 Depreciation 750 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove’s linear cost equation for a production level of…
6. Ibri Company, a manufacturer of stereo systems, started its production in January 2018. For the preceding 3 years had been a retailer of stereo systems. After a thorough survey of stereo system markets, Ibri Company decided to turn its retail store into a stereo equipment factory. Raw materials cost for a stereo system will total $77 per unit. Workers on the production lines are on average paid $11 per hour. A stereo system usually takes 4 hours to complete. In addition, the rent on the equipment used to assemble stereo systems amounts to $5,200 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,000 monthly. Advertising costs for the stereo system will be $5,000 per month. The factory building depreciation expense is $8,400 per year. Property taxes on the factory building will be $12,000 per year.
Question 1 Flounder Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Flounder’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $12,000 Insurance on factory building 1,780 Raw materials used (plastics, polystyrene, etc.) 80,800 Utility costs for factory 920 Supplies for general office 320 Wages for assembly line workers 59,700 Depreciation on office equipment 830 Miscellaneous materials (glue, thread, etc.) 1,470 Factory manager’s salary 6,200 Property taxes on factory building 490 Advertising for helmets 14,900 Sales commissions 10,900 Depreciation on factory building 1,640 Prepare an answer sheet with the following column headings.Enter each cost item on your answer sheet, placing the dollar amount under…
Answer all subparts a,b,c,d,e,f.if answered within 30mins,it would be great Accounting ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation
The Operating Cycle Two Wheeler Cycle Shop buys all of its bikes from one manufacturer, Baxter Bikes. On average, bikes are on hand for 45 days before Two Wheeler sells them. The company sells some bikes for cash but also extends credit to its customers for 30 days. Required On average, what is the minimum length of Two Wheelers operating cycle? the maximum length? Explain why the operating cycle for Baxter, the manufacturer of the bikes, would normally be longer than that of Two Wheeler, the retailer.
The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity? a. 5,400 b. 1,800 c. 7,200 d. 3,600
Cost Identification and Analysis, Cost Assignment, Income Statement Melissa Vassar has decided to open a printing shop. She has secured two contracts. One is a 5-year contract to print a popular regional magazine. This contract calls for 5,000 copies each month. The second contract is a 3-year agreement to print tourist brochures for the state. The state tourist office requires 10,000 brochures per month. Melissa has rented a building for 1,400 per month. Her printing equipment was purchased for 40,000 and has a life expectancy of 20,000 hours with no salvage value. Depreciation is assigned to a period based on the hours of usage. Melissa has scheduled the delivery of the products so that two production runs are needed. In the first run, the equipment is prepared for the magazine printing. In the second run, the equipment is reconfigured for brochure printing. It takes twice as long to configure the equipment for the magazine setup as it does for the brochure setup. The total setup costs per month are 600. Insurance costs for the building and equipment are 140 per month. Power to operate the printing equipment is strongly related to machine usage. The printing equipment causes virtually all the power costs. Power costs will run 350 per month. Printing materials will cost 0.40 per copy for the magazine and 0.08 per copy for the brochure. Melissa will hire workers to run the presses as needed (part-time workers are easy to hire). She must pay 10 per hour. Each worker can produce 20 copies of the magazine per printing hour or 100 copies of the brochure. Distribution costs are 500 per month. Melissa will receive a salary of 1,500 per month. She is responsible for personnel, accounting, sales, and productionin effect, she is responsible for administering all aspects of the business. Required: 1. What are the total monthly manufacturing costs? 2. What are the total monthly prime costs? What are the total monthly prime costs for the regional magazine? For the brochure? 3. What are the total monthly conversion costs? Suppose Melissa wants to determine monthly conversion costs for each product. Assign monthly conversion costs to each product using direct tracing and driver tracing whenever possible. For those costs that cannot be assigned using a tracing approach, you may assign them using direct labor hours. 4. Melissa receives 1.80 per copy of the magazine and 0.45 per brochure. Prepare an income statement for the first month of operations.
Required information Skip to question [The following information applies to the questions displayed below.] John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in each tractor is the motor. John Boyd has the monthly capacity to produce 1,300 motors. The variable costs associated with manufacturing each motor are shown below: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 29 Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $27,000. Joan Reid, Inc. has offered to purchase 200 motors from John Boyd per month to be used in its own outboard motors. What is the incremental cost of producing each additional motor? Multiple Choice
Required information Skip to question [The following information applies to the questions displayed below.] John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in each tractor is the motor. John Boyd has the monthly capacity to produce 1,300 motors. The variable costs associated with manufacturing each motor are shown below: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 29 Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $27,000. Joan Reid, Inc. has offered to purchase 200 motors from John Boyd per month to be used in its own outboard motors. Assuming John Boyd wants to earn a pretax profit of $10,000 on this special order, what price must it charge Joan Reid?
Question 1 The following information relates to ABC tyres based in Oshakati. The normal year at ABC consist of 50 weeks and the normal working week has 5 days, Monday to Friday: Ordering Costs per order N$75.50 Holding Cost per unit 3 % of unit cost Cost per tyre N$1 500 Reorder quantity 3 000 Lead time 10 to 16 days Maximum usage 175 tyres per day Minimum usage 90 tyres per day Average usage 140 tyres per day Required: Calculate the following: (a.) The Reorder level?…
Answer all subparts a to f.if answered within 30mins,it would be helpful Accounting ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation