Life-cyde product costing, Activity-based costing OPQ Products makes digital watches. OPQ is preparing a product-ife cyde budget for a new a watch, SIEKO 6. Development on the new watch is to start shortly. Estimates for SIEKO 6 are as follows: Life-cyde units manufactured and sold Seling prices per watch Life-cyde costs R&D and Design Costs Manufacturing Variable cost per watch Variable cost per batch Watches per batch 400,000 $ 40.00 $1,000,000.00 $ 15.00 $ 600.00 500 $ 1,800,000.00 Fixed Costs Marketing Variable cost per watch Fixed costs $3.20 $ 1,000,000.00 Distribution Variable cost per batch Watch per batch Fixed costs $ 280.00 160 $ 720,000.00 $1.50 Customer-service cost per watch Ignore the time value of money. 1. Calkulate the life cyde costs and the budgeted life-cyde operating income for the new watch. 2. What percentage of the budgeted total product life-cyde costs will be incurred by the end of the R&D and design stage?

Life-cyde product costing, Activity-based costing OPQ Products makes digital watches. OPQ is preparing a product-ife cyde budget for a new a watch, SIEKO 6. Development on the new watch is to start shortly. Estimates for SIEKO 6 are as follows: Life-cyde units manufactured and sold Seling prices per watch Life-cyde costs R&D and Design Costs Manufacturing Variable cost per watch Variable cost per batch Watches per batch 400,000 $ 40.00 $1,000,000.00 $ 15.00 $ 600.00 500 $ 1,800,000.00 Fixed Costs Marketing Variable cost per watch Fixed costs $3.20 $ 1,000,000.00 Distribution Variable cost per batch Watch per batch Fixed costs $ 280.00 160 $ 720,000.00 $1.50 Customer-service cost per watch Ignore the time value of money. 1. Calkulate the life cyde costs and the budgeted life-cyde operating income for the new watch. 2. What percentage of the budgeted total product life-cyde costs will be incurred by the end of the R&D and design stage?

Name: 3. An analysis reveals that 80% of the budgeted total product life-cy
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Description: 3. An analysis reveals that 80% of the budgeted total product life-cyde costs of thenew watch will be locked in at the R&D and design stages. What are theimplications for managing SIEKO 6's costs?4. OPQ's Market Research Department estimates that re

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter20: Activity-based Costing (abc)

Section: Chapter Questions

Problem 1R: Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following...

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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…