JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using this information,classify each of the following costs as fixed or variable with respect to the number of bikes made. Gas used for heating
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Direct material means the raw material directly used in production process. Direct labor cost means…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Answer 1) Calculation of Standard Labor hours allowed to make 20,000 units Standard labor hours…
Q: The controller for Camden's Bike Shop has gathered the following cost and activity level…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using…
A: Given: The JPAK company operates 8 hours per day for 5 days in a week to manufacture and sell…
Q: Erle Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat…
A:
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Labor rate variance = (standard rate per hour- actual rate per hour)*actual hours Labor efficiency…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Required calculations are as follows:
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: ngs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25…
A: In this question, we have to find out the unit cost to manufacture each unit
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: 1. Standard hours required for 1 unit - 27 minute Therefore standard hours required for 19200 unit =…
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: The question is related to the Cost Sheet. In cost accounting, product costs are defined as costs…
Q: Marvel Parts, Ic., manufactures auto accessories. One of the company's products is a set of seat…
A: Variances occurs when there is difference between standard rates, quantity and actual rates,…
Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…
A: Activity base costing is used to allocate the manufacturing overhead on the basis of activity rate.…
Q: Widgeon CO. Manufactures three products: Bales, Tales, and Wales. The selling prices are, $55, $78,…
A: Contribution margin per unit of limited resource = Contribution margin per unit / Machine hours…
Q: JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using…
A: Definition: Variable cost: Variable costs are the costs that are changed based on the number of…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A:
Q: JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: How would i find the variable cost per unit?
A: Variable costs: Variable costs refers to those costs that change in proportion, with the change in…
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Given the following information: Rent on factory equipment: $11,800 Insurance on factory building:…
Q: Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products…
A: Meaning of Activity based costing: Activity based costing means all indirect expense should be…
Q: Swifty Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Direct cost is the cost that is directly involved in the production process of the company that…
Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…
A: Manufacturing cost means the cost of producing the goods in a factory or manufacturing unit. It can…
Q: Southern California Chemical Company manufactures two industrial chemical products, called…
A: 1.
Q: JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using…
A:
Q: JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using…
A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…
Q: Racer X Corporation manufactures two models of motorized go-carts, a standard and a deluxe model.…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is solved…
Q: Erie Company manufactures a mobile fitness device called a Jogging Mate. The company uses standards…
A: Computation of standard labor hours allowed to make 20,000 Jogging mates: Standard hours required =…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a…
A: At the optimal production level, short-term gains are maximized. It is the output at which the…
Q: John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in…
A: Rejecting order will be resulted that company would produce 1000 tractors and same fixed cost will…
Q: Swifty Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Production cost per helmet = Total production cost / No. of helmet produced
Q: HASF Glassworks makes glass flanges for scientific use Material cost $ 1 per flange and the glass…
A: Cost is the amount incurred usually on daily basis by an entity to produce a good or to provide a…
Q: A. Assume that Cane expects to produce and sell 88,000 Alphas during the current year. A supplier…
A: Make and buy decision refers to a decision taken the manager whether to product the required…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: Contribution margin refers to the selling price deducted by variable cost. It ought to cover the…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100,…
A: Financial Advantage (Disadvantage) :— It is the increase or decrease in profit due to the additional…
Q: DirectLabor-Hours per Unit AnnualProduction Hubs 0.70 19,000 units Sprockets 0.30 47,000 units…
A: 1.Compute the activity rate for each activity cost pool. Activity Cost Pool Estimated Overhead…
Q: Gee Manufacturing produces two models of camshafts used in the production of automobile engines:…
A: Expected global consumption ratio: An expected global consumption ratio is the proportion of the…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Atlanta Systems produces two different products, Product A, which sells for $650 per unit, and…
A: Activity rate = Total cost for the activity / Total no. of the activities where, Total no. of the…
Q: Owly Corporation’s agriculture division currently produces their own soil mix to grow the plants…
A: Cost of Sale is the total cost of units produced & sold. It is the Sum of Prime Cost &…
Q: $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its…
A: 1) The financial advantage of buying 55,000 units from the supplier instead of making those units…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90,…
A: Marginal Cost - It is the amount of change in the total cost when the quantity produced are…
Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…
A: Unit Costing - It is a costing technique adopted by those manufacturing concerns which manufacture…
Q: Gee Manufacturing produces two models of camshafts used in the production of automobile engines:…
A: 1. alculate the total and per unit overhead assigned to each model using DBC (assume you only know…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat…
A: Standard costing: Under this costing method, the expected costs are used in the accounting records…
Q: A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so…
A: Solution:- Break- even point is the number of units at which the total cost incurred by a firm in…
Q: Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products…
A: Total setups = 145+116=261
JPAK manufactures and sells mountain bikes. It operates eight hours a day, five days a week. Using this information,
classify each of the following costs as fixed or variable with respect to the number of bikes made. Gas used for heating
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- 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?Tri-bikes manufactures two different levels of bicycles: the Standard and the Extreme. The total overhead of $300,000 has traditionally been allocated by direct labor hours, with 150.000 hours for the Standard and 50,000 hours for the Extreme. After analyzing and assigning costs to two cost pools, it was determined that machine hours is estimated to have $200,000 of overhead, with 4,000 hours used on the Standard product and 1,000 hours used on the Extreme product. k was also estimated that the setup cost pool would have $100000 of overhead, with 1,000 hours for the Standard and 1,500 hours for the Extreme. What is the overhead rate per product, under traditional and under ABC costing?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
- Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Fisico Company produces exercise bikes. One of its plants produces two versions: a standard model and a deluxe model. The deluxe model has a wider and sturdier base and a variety of electronic gadgets to help the exerciser monitor heartbeat, calories burned, distance traveled, etc. At the beginning of the year, the following data were prepared for this plant: Additionally, the following overhead activity costs are reported: Required: 1. Calculate the cost per unit for each product using direct labor hours to assign all overhead costs. 2. Calculate activity rates and determine the overhead cost per unit. Compare these costs with those calculated using the unit-based method. Which cost is the most accurate? Explain.Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.
- Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Bountiful Manufacturing produces two types of bike frames (Frame X and Frame Y). Frame X passes through four processes: cutting, welding, polishing, and painting. Frame Y uses three of the same processes: cutting, welding, and painting. Each of the four processes employs 10 workers who work eight hours each day. Frame X sells for 40 per unit, and Frame Y sells for 55 per unit. Materials is the only unit-level variable expense. The materials cost for Frame X is 20 per unit, and the materials cost for Frame Y is 25 per unit. Bountifuls accounting system has provided the following additional information about its operations and products: Bountifuls management has determined that any production interruptions can be corrected within two days. Required: 1. Assuming that Bountiful can meet daily market demand, compute the potential daily profit. Now, compute the minutes needed for each process to meet the daily market demand. Can Bountiful meet daily market demand? If not, where is the bottleneck? Can you derive an optimal mix without using a graphical solution? If so, explain how. 2. Identify the objective function and the constraints. Then, graph the constraints facing Bountiful. Determine the optimal mix and the maximum daily contribution margin (throughput). 3. Explain how a drum-buffer-rope system would work for Bountiful. 4. Suppose that the Engineering Department has proposed a process design change that will increase the polishing time for Frame X from 15 to 23 minutes per unit and decrease the welding time from 15 minutes to 10 minutes per unit (for Frame X). The cost of process redesign would be 10,000. Evaluate this proposed change. What step in the TOC process does this proposal represent?