Sh9 Sheridan received an order for 920 units from a new customer in a country in which Sheridan has never done business. Thiscustomer has offered $43 per widget. Should Sheridan accept the order?eTextbook and MediaSheridan received an offer from another company to manufacture the same quality widgets for $39. Should Sheridan outsourcesthe manufacture of all 9.200 widgets and focus only on distribution?eTextbook and Media Sheridan, Inc. budgeted 9,200 widgets for production during 2022. Sheridan has capacity to produce 11,200 units. Fixed factoryoverhead is allocated to production. The following estimated costs were provided:Direct material ($7/unit)Direct labor ($15/hr. x 2 hrs./unit)Variable manufacturing overhead ($4/unit)Fixed factory overhead costs ($5/unit)TotalCost per unit = $46$64,400276,00036,80046,000$423,200

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Description: Sh9 Sheridan received an order for 920 units from a new customer in a country in which Sheridan has never done business. Thiscustomer has offered $43 per widget. Should Sheridan accept the order?eTextbook and MediaSheridan received an offer from anot

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Sheridan, Inc. budgeted 9,200 widgets for production during 2022. Sheridan has capacity to produce 11,200 units. Fixed factory overhead is allocated to production. The following estimated costs were provided: Direct material ($7/unit) Direct labor ($15/hr. x 2 hrs./unit) Variable manufacturing overhead ($4/unit) Fixed factory overhead costs ($5/unit) Total Cost per unit = $46 $64,400 276,000 36,800 46,000 $423,200

Sheridan, Inc. budgeted 9,200 widgets for production during 2022. Sheridan has capacity to produce 11,200 units. Fixed factory overhead is allocated to production. The following estimated costs were provided: Direct material ($7/unit) Direct labor ($15/hr. x 2 hrs./unit) Variable manufacturing overhead ($4/unit) Fixed factory overhead costs ($5/unit) Total Cost per unit = $46 $64,400 276,000 36,800 46,000 $423,200

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
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Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
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