XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,5000 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing Finish a cost for one baseball bat? O a. $3.5 O b. $3.46 O c. $2.96 O d. None of the given answer is correct. Oe. $3

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
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Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...
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XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each
month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses two activities in
Finish a
manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated
on the basis of direct labor hours. The cost associated with Finishing is $12,500 a month, allocated on the basis of
batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing
cost for one baseball bat?
O a. $3.5
O b. $3.46
O c. $2.96
O d. None of the given answer is correct.
O e. $3
NEXT PAGE
IOUS PAGE
林
102°F
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Transcribed Image Text:XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $1.00 in direct materials and $0.50 in direct labor. The company uses two activities in Finish a manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $12,500 a month, allocated on the basis of batches. Baseball bats use 2/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat? O a. $3.5 O b. $3.46 O c. $2.96 O d. None of the given answer is correct. O e. $3 NEXT PAGE IOUS PAGE 林 102°F - Type here to search acer
Time ler
Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while the variable cost
ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value?
O a. None of the given answers
Ob. 162,500
O c. 122,500
O d. 102,500
O e. 82,500
Salim is financial advisor and consultant. He wishes to go to Salalah during Al Khareef season. He is considering two
alternatives. The first one is to drive to Salalah. This option is expected to cost Salim about $150 in fuel cost. Salim
also can invite three of his friends to join the trip. Each one of them is expected to pay Salim $40. The other option for
Salim is to use Muwasalat bus service. Under this option Salim will also need to rent a car once he arrives to Salalah.
The total cost of this option including the bus ticket and the car rental is $400. Because the bus trip takes about 11
hours, Salim can use the time to provide consultation services that are expected to earn him $500 in total. If Salim
decided to use the bus to Salalah, what would be the differential cost ($) of the that option?
on
put of
O a. 120
O b. 500
C.
400
O d. None of the given answers
150
P Type here to search
Transcribed Image Text:Time ler Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $10 while the variable cost ratio is 20%. Assuming total fixed costs of $30,000, what is the margin of safety in ($) value? O a. None of the given answers Ob. 162,500 O c. 122,500 O d. 102,500 O e. 82,500 Salim is financial advisor and consultant. He wishes to go to Salalah during Al Khareef season. He is considering two alternatives. The first one is to drive to Salalah. This option is expected to cost Salim about $150 in fuel cost. Salim also can invite three of his friends to join the trip. Each one of them is expected to pay Salim $40. The other option for Salim is to use Muwasalat bus service. Under this option Salim will also need to rent a car once he arrives to Salalah. The total cost of this option including the bus ticket and the car rental is $400. Because the bus trip takes about 11 hours, Salim can use the time to provide consultation services that are expected to earn him $500 in total. If Salim decided to use the bus to Salalah, what would be the differential cost ($) of the that option? on put of O a. 120 O b. 500 C. 400 O d. None of the given answers 150 P Type here to search
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