Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be- sold for $2,100 per ton, and ingot can be sold without further nrocessing for $1,050 per ton. Ingot is produced in batches of 89 tons by smelting 550 tons of bauxite, which costs $110 per ton of bauxite. Rolled aluminum will require additional processing costs of $610 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required: 1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Eurther into Rollod oluumi
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- BE5.5 - Using Excel to Evaluate a Make-Versus-Buy Decision Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Grunar Industries produces the component parts needed for its popular non-commercial-use drones. One of the key parts has become more costly to produce than first planned, however, so management is considering outsourcing that part. If the company decides not to manufacture this part, a portion of its fixed manufacturing overhead costs would continue. The costs to produce one such part internally and to purchase on part from the suppler are given here. Complete the schedule to support the decision of whether to make or buy the part. Relevant Costs to Make Relevant Cost to Buy Costs to produce internally…Pls answer this question with solutions. In 20x1, LUMINOUS SHINING Co. recalled a product due to a possible defect caused by malfunctioning factory equipment. The products recalled will be repaired free of charge. LUMINOUS is uncertain whether all products recalled will have the possible defect. However, the following estimate was made by LUMINOUS’s engineers and managerial accountants and approved by the board of directors. Repair cost Probability 80,000,000 5% 60,000,000 20% 40,000,000 35% 20,000,000 40% 100% How much is the provision to be recognized? a. 38Mc. 48M b. 50Md. 32MProduct mix, special order. (N. Melumad, adapted) Gormley Precision Tools makes cuttingtools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a highprecisioncutting tool. A6 is manufactured on a regular machine, but EX4 must be manufactured on both theregular machine and a high-precision machine. The following information is available: A6 EX4 $ 200 $ 300 Selling price $ 120 $ 200 Variable manufacturing cost per unit $ 30 $ 70 Variable marketing cost per unit 1.0 0.5 Hours required to produce one unit on the regular machine $700,000 $1,100,000 Budgeted total fixed overhead costs Additional information includes the following:a. Gormley faces a capacity constraint on the regular machine of 50,000 hours per year.b. The capacity of the high-precision machine is not a constraint.c. Of the $1,100,000 budgeted fixed overhead costs of EX4, $600,000 are lease payments for the highprecisionmachine. This cost is charged…
- b) Paste Corporation has established new plant for the production of new product called “Diazinon”. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following:Process base Order baseVariable manufacturing cost per unit..................... Rs14.00 Rs.17.60Fixed manufacturing cost per year ......................Rs. 2,440,000 Rs. 1,320,000 The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for Diazinon. The yearly fixed selling and admin costs of the Diazinon are Rs.500, 000. The variable selling and regulatory costs are Rs. 2 per unit. Required: I. CM ratio and variable expenses ratio. If Paste Corporation uses the:1. Process base manufacturing method.2. Order base manufacturing method.II. Break-even point in…ABC Company is introducing a new product. The managers are trying to decide whether to make one of its components or to buy it from an outside supplier. The space that could be used to make the part has no alternative use. The outside supplier will sell the part to ABC for P800 per unit. Following is an estimate of per-unit costs if ABC makes the part: Materials P225 ; Direct labor P250 ; Variable manufacturing overhead P225 ; Fixed manufacturing overhead P325. Fixed manufacturing overhead consists of depreciation on machinery and a share of the costs of the factory based on the floor space that manufacturing the part would occupy. Determine whether ABC should make or buy the part. Also you have to indicate the amount favoring the better alternative. please answerIdentification. Pocket Umbrella, Inc., is considering producing a new type of umbrella. This newpocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of thisnew product as direct materials, direct labor, manufacturing overhead, selling expense, oradministrative expense.6. The salary of the supervisor of the people who assembled the product7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak8. Cost of market research survey9. Salary of the company’s sales managers10. Depreciation of administrative office buildingB. Essay. Answer below questions as required.1. Identify the three elements of cost incurred in manufacturing a product and indicate thedistinguishing characteristics of each. 2. What is the general content of a statement of cost of goods manufactured? 3. What is the relationship of the cost of goods manufactured to the income statement? 4. How did you cope up with your studies in this “new normal”…
- please explain why the option is false and other options true in detail with full explanation Sing Manufacturing Company is considering an opportunity to outsource a four functioncalculator that the Company currently makes and sales. Even if the calculator is outsourced,Sing plans to continue to sell it. Also, Sing plans to continue production on other calculatormodels that are currently being made by the Company. The costs associated with making thefour function calculators include unit-level materials, labor, and overhead. In addition, thereis some facility-level overhead costs that are allocated to the product. Sing pays a 5% salcscommission on each calculator sold. Based on this information, indicate which of thefollowing statements is false.a. The materials cost is relevant to the outsourcing decision.b. The facility-level overhead cost is not relevant to the outsourcing decision.C. The sales commission is relevant to the outsourcing decision.d. It may be wise for Sing to…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.Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected ConsumptionRatios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,200,000 0.7 0.3 8. Purchasing materials Number of purchase orders 1,900 0.2 0.8 1. Developing test programs Engineering hours 11,500 0.25 0.75 3. Testing products Test hours 20,000 0.6 0.4 ABC assignments $155,000 $155,000 Total overhead cost $310,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting…
- I need help with required 3 please Wayne Casting, Inc., produces a product made from a metal alloy. Wayne buys the alloy from two different suppliers, Chillicothe Metals and Ames Supply, in approximately equal amounts because of supply constraints at both vendors. The material from Chillicothe is less expensive to buy, but more difficult to use, resulting in greater waste. The metal alloy is highly toxic and any waste requires costly handling to avoid environmental accidents. Last year the cost of handling the waste totaled $300,000. Additional data from last year’s operations are shown as follows. Chillicothe Metals Ames Supply Amount of material purchased (tons) 130 120 Amount of waste (tons) 12.8 2.2 Cost of purchases $ 624,000 $ 876,000 Required: a. Allocate the cost of the waste handling to the two suppliers based on: 1. Amount of material purchased. 2. Amount of waste. 3. Cost of material purchased.Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly….A Company produces Optimist sailboats. The costs of producing 107000 tiller extensions for use in the boats are as follows:Direct labor $253000Direct materials 302000Variable overhead 66000Fixed overhead 185000An outside supplier has offered to supply the tiller extensions for $725000. If the company accepts the offer $86000 of fixed costs can be avoided. What is the financial advantage (disadvantage) of accepting the supplier’s offer?