Bobby's contracting creates individual pieces of interior design for clients. Each is different as they have different requirements and stylizing. Bobby is trying to sort out his pricing, and aims for a 35% margin on top of all costs. Manufacturing OH is allocated based on 20$ per DLHour and this rate is expected for the full financial period. 80 hours were spent on this job. There are no opening inventories, and the client is looking for a price quote... The boss told you not to worry about the opening or ending balances. Post the manufacturing entries in T-accounts provided for A) the end of year OH entry, B) movement of inventory, and C) revenue made in period of $500,000. Actual OH Work in Progress (WIP) $ 60,000 100,000 200,000 Finished Goods COGS $ 5,000 50,000 150,000 205,000 Budgeted OH Revenue 200,000 OH DM DL OH
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- 12. Menchie Corporation is developing standards for its products. One product requires an input that is purchased for P57.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price. Shipping costs from the supplier's warehouse amount to P3.60 per kilogram. Receiving costs are P0.26 per kilogram. The standard price per kilogram of this input should be: A.P 57.70 В. Р 56.30 С. Р 65.42 D. P 57.00Q18. A process control manager is considering two robots to improve materials-handling capacity in the production of rigid shaft couplings that make dissimilar drive components. Robot X has a first cost of $76,000, an annual M&O cost of $31,000, and $42,000 salvage value, and it will improve revenues by $96,000 per year. Robot Y has a first cost of $146,000, an annual M&O cost of $28,000, and $47,000 salvage value, and it will increase revenues by $121,000 per year. The company’s MARR is 46% per year, and it uses a 3-year study period for economic evaluations. Calculate the incremental ROR, and identify the robot the manager should select. The incremental ROR is The manager should select robot ?Q4 The Portland Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows: Direct materials $4 Variable direct manufacturing labor 22 Variable manufacturing overhead 17 Fixed manufacturing overhead allocated 20 Total manufacturing cost per unit $63 The Counter Company has offered to sell 20,000 units of Part No. 498 to Portland for $58 per unit. Portland will make the decision to buy the part from Counter if there is an overall savings of at least $20,000 for Portland. If Portland accepts Counter’s offer, $5 per unit of the fixed manufacturing overhead allocated would be eliminated. Furthermore, Portland has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. For Portland to…
- E8.8 (LO 3), AN Antonio is evaluating some of last year’s manufacturing costs for his business, Work It Out, which creates custom-fit exercise equipment for high-end clients. He is trying to strengthen his own analytical skills by looking at some of the total cost amounts and working backward to make sure he can find the detailed amounts that comprised these totals. Last year’s manufacturing costs are as follows. Total manufacturing costs $580,000 Total applied MOH (based on an MOH rate of $1.80/DL dollar) 270,000 Total cost of goods completed 630,000 Beginning balance in WIP Inventory 56,000 Required a. How much direct labor cost was incurred last year? b. What was the cost of direct materials used? c. What was the ending balance in WIP Inventory last year? d. If FG Inventory had no ending balance but Cost of Goods Sold was $675,000, what was the beginning balance in FG Inventory last year? e. Given the company’s goal to generate a 65% gross margin on these products, how much revenue…Q. 8 Which following costs need to be considered for both make or buy options? O. Fixed overhead O. Variable overhead O. Rental revenue Q. 9 What is the per unit cost to purchase from the vendor? Round to the nearest penny. Q. 10 Based on your analysis, the CreativeStationary Co. should make the product in-house or buy them from the vender? O. Make O. Buy Do (Q8,9,10 plz)Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.
- Q5b) Contribution statement for Chiyeyeye furniture manufacturing LtdProduct A(ZMW) Product B(ZMW)Sales 1000 500Variable costs 600 300Contribution 400 200Fixed costs 200 200Profit 100 -Calculatei) Break-even point for each productii) Contribution ratio for each productiii) Can you close product B and why? ExplainQ7. c) Contribution statement for komfwe dry cleaning Ltd Product A(ZMW) Product B(ZMW) Unit budgeted 1000 1000 Sales 1000 500 Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100 - Calculate i) Break-even point for each product ii) Contribution ratio for each product iii) Can you close product B and why? ExplainE9.7 (LO 3), AP The managers of Hand It to Me were determined to reduce product costs for the three versions of wireless mouse they carried—small, medium, and large—to be more competitive. All three product types went through production and packaging and generated the need for factory maintenance. The activity rates for these three key activities are as follows. MOH Rates Production $12.00 per DL hour Packaging $5.00 per packaging hour Maintenance $3.00 per machine hour The following resources were consumed for the production of each type of mouse. Small Medium Large Direct labor hours used 3,500 6,000 4,500 Packaging hours used 2,500 3,500 4,500 Machine hours used 5,000 5,000 5,000 Units produced 30,000 40,000 30,000 Required 1. Describe what information the managers used to estimate the three activity rates noted above. 2. Allocate MOH…
- E8.2 (LO 1, 2, 3), AN Suni, the manager of Stargazers, is analyzing the company’s MOH costs from last year. Stargazers had always followed an actual costing system when determining the costs of its customizable telescopes. Suni wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Stargazers has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Suni is analyzing: Budgeted MOH cost $422,400 Actual MOH cost $414,720 Budgeted machine hours 96,000 Actual machine hours 108,000 Required 1.Determine the actual MOH rate and the budgeted MOH rate Stargazers would have used last year under actual costing and normal costing, respectively. 2. Calculate total applied MOH under both actual costing and normal costing for last year. 3. How much would Stargazers’ under- or overapplied MOH…6.9. Soft Key is trying to determine how best to produce its newest product, DVORK keyboards. The keyboards could be produced in-house using either process A or process B, or purchased from a supplier. Cost data are given below. For what levels of demand should each process be chosen? Fixed Cost Variable CostProcess A $ 8,000 $10Process B $20,000 $ 4Supplier $ 0 $20III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?