PA5. LO 6.3 Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: Estimated Overhead Cost pool Material receipts Machine setups Assembly Inspection $ 133,000 300,000 700,000 250,000 Total $1,383,000 It has also estimated the activities for each cost driver as follows: Driver Generic Label Inspections Requisitions Parts 400 600 450 950 300 400 Setups 250 350 How much is the overhead allocated to each unit of Generic and Label?
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- Trinity product Limited makes and sells three types of electronic security systems forwhich the following information is availableStandard cost and selling price per unitDay Scan Night scan Omni scanGH¢ GH¢ GH¢Material 70 110 155Manufacturing labour 40 55 70Installation labour 24 32 44Variable overheads 16 20 28Selling price 250 320 460Fixed cost for the period are GH¢450,000 and installation labour, which is highly skilledis available for 25,000 hours only in a period and is paid GH¢8 per hour. Bothmanufacturing and installation labour are variable cost. The maximum demand for theperiod is: Day scan 2,000 units; Night scan 3,000 units; Omni scan 1,800units.Requireda) Calculate the shortfall (if any) in hours of installation labour. b) Determine the best production plan assuming the company wishes to maximizeprofit. c) calculate the maximum profit that could be achieved from the plan in part (b) aboved) Having carried out an investigation of the availability of installation labour, the…Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.E9.7 (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…
- XYZ Inc. manufactures a component D12, and two main products F45 and P67. The following details relate to each of these items: D12 D45 P67 Selling price ? 146 159 Material cost 10 15 26 Component D12 (bought-in price) ? 25 25 Direct labour 5 10 15 Variable overheads 6 12 18 Total variable cost per unit 21 62 84 Fixed overhead costs: P per annum P per annum P per annum Avoidable* 9,000.00 18,000.00 40,000.00 Non-avoidable 36,000.00 72,000.00 160,000.00 Total 45,000.00 90,000.00 200,000.00 * The avoidable fixed costs are product-specific fixed costs that would be avoided if the product or component were to be discontinued. 1. Assuming that the annual demand for component D12 is 5,000 units and that XYZ Inc. has sufficient capacity to make the component itself, the maximum price that should be paid to an external supplier for 5,000 components per year is 2. Assuming that component D12 is bought from an external supplier for P25.00 per unit, the number of units…B4. In a joint process, Tiny Town Lumbers produces two products: Long Boards and Really Long Boards. Joint processing costs for this quarter's production cycle are $66,000. Yards Sales price per yard at split-off Disposal cost per yard at split-off Further processing per yard Final sale price per yard Long Boards 1,440 $60.00 $3.50 $21.00 $ 77.50 Really Long Boards 2,160 80.00 5.00 33.00 111.25 If Long Boards and Really Long Boards are processed further, no disposal costs will be incurred or such costs will be borne by the buyer. Using a physical measure method, what amount of joint processing cost is allocated to Really Long Boards(round to the nearest dollar)? Group of answer choices $3,243 $26,400 $39,600 $4,757Given: 3 suppliers, A,B,C, with the following defect rates; 1%, 3%, and 6% respectively The required lot size will be shipments of 5000 parts and a n=130, c=4 plan is used. A P(A) = .990867741 B P(A) = .649032659 C P(A) = .10131708 AOQ A = .0096512 AOQ B = .0189647 AOQ C = .00592097 ATI A = 174.4741 ATI B = 1839.21095 ATI C = 4506.5858 After reviewing your inspection plan to your supervisor, she asks you to join her in a discussion with the purchasing agent to determine which of the 3 companies is the best option as a supplier for the new component. (Note the cost of inspection is absorbed by your company but you may assume that all suppliers will replace any defective parts found during inspection for free). The purchasing agent has the following quoted prices for the 3 suppliers; A-$9/part, B-$7/part, C-$5/Part. Additionally, internally the quality department has estimated a $3/part inspection cost, and while the Marketing Department has estimated a $20 loss per defective product…
- III. 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?KPR manufactures deals in various products. Relevant details of the products are as under: AWAXAYAZ Estimated annual demand (units)5000100070008000 Sales price per unit (Rs.)150180154175 Material consumption: Q (Rs)2729.524.529.75 Labor hours (Rs)5056.2543.7562.5 Variable overheads (based on labor cost) 70%80%10%90% Fixed overheads per unit (Rs.)10201416 Machine hours required: Processing machine hours 56810 The capacity utilization is as under:Hours Processing machine 150,000 RequiredCompute the number of units of each product that the company should produce in order tomaximize the profit. (B) KPR manufactures is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is Rs 184 and its unit product cost is Rs140.00 as shown below: Direct materials . . . . . . . . . . . . . . . . . . . . Rs 81.00Direct labor . . . . . . . . . . . . . . . . . . . . . . . 42.00Manufacturing…Swifty Corporation can produce 100 units of a necessary component part with the following costs: Direct Materials $24000 Direct Labor 13000 Variable Overhead 30000 Fixed Overhead 12000 If Swifty Corporation purchases the component externally, $3500 of the fixed costs can be avoided. Below what external price for the 100 units would Swifty choose to buy instead of make the units? $70500 $75500 $58500 $67000
- Waterway Industries incurs the following costs to produce 10600 units of a subcomponent: Direct materials $8904Direct labor 11978Variable overhead 13356Fixed overhead 16200 An outside supplier has offered to sell Waterway the subcomponent for $2.85 a unit. If Waterway accepts the offer, by how much will net income increase (decrease)? a. $(3074)b. $(9328)c. $4028d. $20228Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 4.55 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 11,000 Sales commissions $ 1.30 Variable administrative expense $ 0.35 Fixed selling and administrative expense $ 4200 For financial reporting purposes, the total amount of period costs incurred to sell 5000 units is closest to: Question 16 options: $12,450 $11,000 $4200 $8250E6.5 (LO 1), AP Carey Company had sales in 2021 of $1,500,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the unit variable costs by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the unit variable costs should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. Instructions Prepare a projected CVP income statement for 2022 (a) assuming the changes have not been made, and (b) assuming that changes are made as described. Compute break-even point in sales units for a company with more than one product.