decrease in the cost of ordering a batch of raw material?Questions on Accounting for Materialsunits, The annual holding costs associated with orne unitCaasine Jobbors1. The purchase price of antheA. 730B. 894© 1,4611,633A. EOQ: Higher, Annual Holding Cost: LawerB. EOQ: Higher, Annual Holding Cost: HigherC. EOQ: Lower, Annual Holding Cost: HigherD. EOQ: Lower, Annual Holding Cost: Lowerreorder quantity (to the nearest 100 units)?A. 500 unitsB. 1,000 unitsC. 1,200 unitsD. 1,700 unitsthe component?A. 530B. 671C. 949D. 1,342one unit of the component in inventory?A. EOQ: Lower, Total Annual Ordering Cost: HigherB. EOQ: Higher, Total Annual Ordering Cost: LowerC. EOQ: Lower, Total Annual Ordering Cost: No EffectD. EOQ: Higher, Total Annual Ordering Cost: No EffectE. The demand for a product is 12,500 units for a three-month period. Each unit oras a purchase price of $15 and ordering costs are $20 per order placed. The

We shall answer the first question not answered i.e. Question 2 as the exact question wasn't…

decrease in the cost of ordering a batch of raw material? A. EOQ: Higher, Annual Holding Cost: Lower B. EOQ: Higher, Annual Holding Cost: Higher C. EOQ: Lower, Annual Holding Cost: Higher D. EOQ: Lower, Annual Holding Cost: Lower norder quantity per

decrease in the cost of ordering a batch of raw material? A. EOQ: Higher, Annual Holding Cost: Lower B. EOQ: Higher, Annual Holding Cost: Higher C. EOQ: Lower, Annual Holding Cost: Higher D. EOQ: Lower, Annual Holding Cost: Lower norder quantity per

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 28P: The following information pertains to Vladamir, Inc., for last year: There are no work-in-process...

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The following cost details relate to one unit of product Alphatron.Variable materials Variable labour Production overheadsVariableFixedSelling and distribution overheadsVariableFixed Total cost£ per unit 23.52 20.883.24 22.4617.98 8.16 96.24In a marginal costing system, the value of a closing inventory of 3,400 units of Alphatron will be:a) £327,216b) £238,339c) £223,107d) £161,976
The following cost details relate to one unit of product Zen. (£) Variable materialsVariable labourVariable production overheads Fixed production overhead Variable selling overhead Fixed selling overheadTotal cost 20.40 18.20 3.60 25.88 15.58 7.56 91.22 In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be? a) £288,900 b) £211,000 c) £193,000 d) £456,100
The following cost details relate to one unit of product Zen. (£) Variable materialsVariable labourVariable production overheads Fixed production overhead Variable selling overhead Fixed selling overheadTotal cost 20.40, 18.20, 3.60 ,25.88 ,15.58 ,7.56 ,91.22 In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be?
Under the variable-costing concept, unit product cost would most likely beincreased by A. A decrease in the remaining useful life of factory machinery depreciated on theunits-of-production method.B. A decrease in the number of units produced.C. An increase in the remaining useful life of factory machinery depreciated on thesum-of-the-year’s digits method.D. An increase in the commission paid to salesman for each unit sold.
WorrelCorporation manufactures avariety of products. The following data pertain to the company's operations over the last two years: Variable costing net operating income, last year............P71,000 Variable costing net operating income, this year............P92,000 Fixed manufacturing overhead costs deferred in inventory under absorption costing, last year..............P2,000 Fixed manufacturing overhead costs released from inventory under absorption costing, this year..............P11,000 Required: a.Determine the absorption costing net operating income last year. b.Determine the absorption costing net operating income this year.
Product Cost Period (Selling Name of the Cost Variable Cost Fixed Cost Direct Materials Direct Labor Manu-facturing Overhead and Admin) Cost Oppor-tunity Cost Sunk Cost Rental revenue forgone, $30,000 per year X Direct materials cost, $80 per unit X X Rental cost of warehouse, $500 per month X X Rental cost of equipment, $4,000 per month X X Direct labor cost, $60 per unit X X Depreciation of the annex space, $8,000 per year X X X Advertising cost, $50,000 per year X X Supervisor's salary, $1,500 per month X X Electricity for machines, $1.20 per unit X X Shipping cost, $9 per unit X X Return earned on investments, $3,000 per year…
Yamato Company’s 2019 fixed manufacturing overhead costs totaled Php120,000 and variable selling costs totaled P45,000. 7. Under variable (direct) costing, how much of the costs are product costs?A. None C. Php120,000B. Php45,000 D. Php165,000 8. Under absorption (full) costing, how much of the costs are period costs?A. None C. Php120,000B. Php45,000 D. Php165,000
The following information regarding fixed production costs from a manufacturing firm is available for the current year: Fixed costs in the beginning inventory - P16,000; Fixed costs incurred this period - P100,000. Which of the following statements is not true? * a. The maximum amount of fixed production costs that this firm could deduct using absorption costs in the current year is P116,000. b. The maximum difference between this firm's the current year income based on absorption costing and its income based on variable costing is P16,000. c. Using variable costing, this firm will deduct no more than P16,000 for fixed production costs. d. If this firm produced substantially more units than it sold in the current year, variable costing will probably yield a lower income than absorption costing.
Alis Company, a portion of the materials (a by-product) is removed further processed and sold. The Company uses the reversal cost method to account for the by-product. Data for June include: Amount of by-product removed is 2000 units; Estimated sales price of by-product after processing further is P1.20/unit. Estimated processing cost after separation is P0.30 per unit and estimated selling expenses is 10% of the sales price. The estimated profit margin is 5% of the sales price. What is the gain or loss on sale of the by-product if all of the units are sold at P1.50?
Question No. 1. A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing, using this information, determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Given: Annual fixed cost = P2,250,000.00 Variable cost per part = P7,000.00 For purchasing from supplier Purchase price per part = P8,000.00 Question No. 2. In relation to the previous question answer the following: If demand is forecast to be greater than 2,500 parts, should the firm make the part in-house or purchase it from a supplier? The marketing department forecasts that the upcoming year’s demand will be 2,500 units. A new supplier offers to make parts for P7,500.00 each. Should the company accept the offer? What is the maximum price per part the manufacturer should be willing to pay to the supplier if the forecast…
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? Answer: $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum…
Relevant costs; special order pricingKantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,000 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $Answer b. Kantrovitz has 5,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $Answer c. During the next…