The Lyn Division of Rosal Homes Inc produces and sells lumber that can be soie to gathered for the coming period: Lyn Division: Capacity Price board foot 100,000 board feet P4.00 per Variable production cost per board foot Variable selling cost per board foot Mel Division: Board feet needed P2.00 PO.70 40,000 P3.50 Outside price paid per board foot
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- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
- The Lyn Division of Rosal Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Mel Division. The following data have been gathered for the coming period: Lyn Division: Capacity 100,000 board feet Price per board foot P4.00 Variable production cost per board foot P2.00 Variable selling cost per board foot P0.70 Mel Division: Board feet needed 40,000 Outside price paid per board foot P3.50 If the Lyn Division sells to the Mel Division, P0.40 per board foot can be saved in shipping costs. If Lyn Division has sufficient excess capacity to fulfill the Mel Division’s needs, what will be the effect on the…The Lyn Division of Rosal Homes Inc. produces and sells lumber that can be sold to outside customers or within the company to the Mel Division. The following data have been gathered for the coming period: Lyn Division: Capacity 100,000 board feet Price per board foot P4.00 Variable production cost per board foot P2.00 Variable selling cost per board foot P0.70 Mel Division: Board feet needed 40,000 Outside price paid per board foot P3.50 If the Lyn Division sells to the Mel Division, P0.40 per board foot can be saved in shipping costs. If current outside sales are 70,000 board feet, what is the minimum transfer price that the Lyn Division could…produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: Lumber Division: Capacity 200,000 board feet Price per board foot P2.00 Variable production cost per bd. f. P1.00 Variable selling cost per bd. f. P0.40 Construction Division: Board feet needed 60,000 Outside price paid per bd. $ P1.60 If the Lumber Division sells to the Construction Division, P0.30 per board foot can be saved in shipping costs. If current outside sales are 130,000 board feet, what is the minimum transfer price that the Lumber Division could accept?
- Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis:Variable manufacturing costR1 185 000Fixed manufacturing costR510 000Sales commissionR5 per unit soldFixed administration costR130 000SalesR210 per unit Study the information provided above and answer the following questions independently:4.1 Calculate the break-even sales value. 4.2 Calculate the sales volume required to achieve a profit of R 800 000. 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your answer with relevant calculations.REQUIRED USED THE INFORMATION BELOW TO PROVIDE BELOW TO PREPARETHE PERFORMANCE REPORT FOR LONMIN LIMITED INFORMATION LONMIN LTD MANUFACTURES A SINGLE PRODUCT.IT ORGINALLY PLANNED TO PRODUCE AND SELL 18 000 UNITS DURING THE YEAR BUT THE ACTUAL ACTIVITY LEVEL WAS 22 000 UNITS.THE BUDGETED AND ACTUAL INCOME AND COST FOR THE YEAR ARE AS FOLLWS ORGINAL BUDE ACTUAL RESULTS VOLUME 18 000 UNITS 22 000UNITS R R SALES 2 500 000 3 300 000 COST OFSALES (1 670 000) (2132 000) DIRECT MATERIALS 720 000 924 000 DIERECT LABOUR 450 000 594 000 VARIABLES OVERHEADS 180 000 264 000 FIXED OVERHEADS 320 000 350 000 GROSS PROFIT 850 000 1 168 000The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
- Cost data relating to the single product produced by the firm are given as: Direct materials→₱8.00; Direct labor→₱12.00; Variable manufacturing overhead→₱5.00; Fixed manufacturing overhead→₱400,000; Variable selling, general and administrative expenses→₱4.00; Fixed selling, general and administrative expenses→₱900,000. The firm uses the absorption costing approach described in the text and has a desired markup of 75%. If the company can produce and sell 40,000 units each period, the selling price per unit would be: a. ₱ 73.75 b. ₱ 61.25 c. ₱ 50.75 d. ₱ 107.63 e. ₱ 43.75 f. ₱ 35.00Tiara Corporation manufactures and sells scarfs. Price and cost data for the company are provided below:Selling price per unit$50Variable costs per unitManufacturing costsDirect material15Direct labour8Variable manufacturing overhead12Variable selling and administrative costs3Annual fixed costsFixed manufacturing overhead$2,640,000Fixed selling and administrative costs$1,560,000Forecasted annual sales (units)500,000Required:(a)What is Tiara Corporation’s break-even point in dollars? (b)How many units would Tiara Corporation have to sell in order to earn a before tax profit of $480,000? (c)What is the company’s margin of safety (in dollars)?(d)If the company’s direct material costs increase by 20 percent and the fixed selling and administrative costs decrease by 20 percent, how many units will the company have to sell next year to reach its break-even pointBenoit Company produces three products, A, B, and C. Data concerning the three products follow(per unit):ProductA B CSelling price ..................................................... $80 $56 $70Variable expenses:Direct materials ............................................ 24 15 9Other variable expenses .............................. 24 27 40Total variable expenses ................................... 48 42 49Contribution margin .......................................... $32 $14 $21Contribution margin ratio .................................. 40% 25% 30%Demand for the company’s products is very strong, with far more orders each month than the companycan produce with the available raw materials. The same material is used in each product. The materialcosts $3 per pound with a maximum of 5,000 pounds available each month.Required:Which orders would you advise the company to accept first, those for A, for B, or for C? Which orderssecond? Third?