Product A130 ВЗ24 C587 Selling price Variable costs $252 $168 $210 $ 27 $ 72 $ 84 $ 45 $ 81 Direct materials Labor and other costs $120 3 lb. Quantity of Brac per unit 8 lb. 5 lb. The demand for the products far exceeds the direct materials available to produce the products. Brac costs S9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product. 1. How many units of product A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac? Required

Product A130 ВЗ24 C587 Selling price Variable costs $252 $168 $210 $ 27 $ 72 $ 84 $ 45 $ 81 Direct materials Labor and other costs $120 3 lb. Quantity of Brac per unit 8 lb. 5 lb. The demand for the products far exceeds the direct materials available to produce the products. Brac costs S9 per pound, and a maximum of 5,000 pounds is available each month. Wechsler must produce a minimum of 200 units of each product. 1. How many units of product A130, B324, and C587 should Wechsler produce? 2. What is the maximum amount Wechsler would be willing to pay for another 1,200 pounds of Brac? Required

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...

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What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Refer to Exercise 20.10. Assume the economic lot size for small casings is 120,000 and that of the large casings is 40,000. Morrison Manufacturing sells an average of 9,600 small casings per workday and an average of 3,200 large casings per workday. It takes Morrison two days to set up the equipment for small or large casings. Once set up, it takes three workdays to produce a batch of small casings and five days for large casings. There are 250 workdays available per year. Required: 1. What is the reorder point for small casings? Large casings? 2. Using the economic order batch size, is it possible for Morrison to produce the amount that can be sold of each casing? Does scheduling have a role here? Explain. Is this a push- or pull-through system approach to inventory management? Explain.
Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.
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23. FGM Limited produces nail brushes for domestic use. It sells 80,000 in a year. Raw materials cost P0.15 per brush and other variable cost per year P48,000. Fixed costs amount to P60,000. What is the total cost per unit. P0.75 P1.35 P1.50 P1.00
Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance:8. Variable overhead rate variance
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 4. Labor efficiency variance: 5. Labor Rate variance: 6. Total Direct labor spending variance: 7. Variable overhead efficiency variance:8. Variable overhead rate variance
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 2. Material price variance :3. Total Material spending variance: 4. Labor efficiency variance: 5. Labor Rate variance:
Standard DM price per pound (Lbs): $20 Standard DM needed per unit: 2 Lbs Standard DL rate: $15 per hour Standard DL hours per unit: 2 hours of Direct Labor per unit *The actual DM used for 11000 units of production is 24200 lbs which means: 24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit Actual DL hours: 20000 hours Variable Overhead Rate applied based on per DL hour: $10 *Note: I am helping you here! AQ (AP-SP) = DM Price Variance (AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM) $442,000 - (24200 x $20) = DM Price Variance 442,000 - 484,000 = DM Price Variance $42,000 Favorable DM Price Variance please answer the following questions: 7. Variable overhead efficiency variance:8. Variable overhead rate variance:9. Total variable overhead:10. Total fixed overhead spending variance: