QUESTION 7 Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces and sells 10,000 cases at $50 per case. The direct materials equals $130,000, direct labor equals $110,000, and overhead equals $100,000. Sixty percent of the manufacturing overhead is variable. The forty percent of fixed overhead is allocated equally to all products. Dewey, Cheatum & Howe has offered to purchase 1,000 cases but at a reduced price of $40 per case. What is the additional operating income (loss) of accepting this offer? ENTER NEGATIVE NUMBERS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000

Question 6                                                                                                     Technology Inc. Ltd sells desktop computer printers for $65 per unit. Unit product costs are:             Direct materials                                 $12 Direct labor                                         20 Manufacturing overhead                     6 Total                                                 $38   A special order to purchase 10,000 desktop computer printers has recently been received from another company, and Technology Inc. has the idle capacity to fill the order. The company will incur an additional $1.50 per printer for additional labor costs due to a slight modification the buyer wants to be made to the original product. One-third of the manufacturing overhead costs are fixed and will be incurred no matter how many units are produced. $2,100 of existing fixed administrative costs will be allocated to the order as “part of the cost of doing business”.…

Question 14 Martin Company incurred the following costs for 50,000 units: Variable $180,000 costs Fixed costs 240,000 Martin has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $8,500 for shipping. If Martin wants to break even on the order, what should the unit sales price be? a) $5.30 b) $8.40 c) $3.60

Exercise 23-2 Make or buy LO P1 Gelb Company currently manufactures 55,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $81,000 per year, and allocated fixed costs are $74,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 55,500 units and buying 55,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier? Complete this question by entering your answers in the tabs below. Costs to Make Costs to Buy Outside Supplier Calculate the total incremental cost of making 55,500 units. (Round "variable cost per unit" answers to 2 decimal places.) Incremental Costs to Make Variable cost per unit Fixed manufacturing costs Total incremental cost to make…

Exercise 11-42 (Algo) Sell or Process Further: Multiple Choice (LO 11-9)   Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a single input, Chem-X. Products M-10 and M-20 can either be sold at split-off or processed further and sold. A given batch begins with 1,280 gallons of Chem-X with a cost of $115,200. Additional information regarding a batch follows.         If Processed Further Product Units Produced Unit Sales Value at Split-off Additional Costs (Per Unit) Sales Value (Per Unit) M-10   28,160   $ 20.00   $ 16.00   $ 20.00   M-20   17,920   $ 24.00   $ 4.00   $ 44.00   B-60   6,400   $ 0.50     NA     NA       Oak View Chemicals uses the physical quantities method to allocate joint costs and the revenues from by-products are credited to joint costs.  Required: Under these assumptions, the following product(s) should be processed further and then sold:   Multiple Choice   M-20   M-10   Cannot tell from the…

Question 6 Amundsen Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling Total $ 10.10 $17.40 $ 2.70 $15.00 $ 2.75 $ 3.25 $51.20 An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used to make the part would be idle and fixed manufacturing overhead would be reduced by 80% of current cost. The variable selling costs would be reduced to 40% of current cost. Required: What is the maximum amount the company should be willing to pay an outside supplier per unit for the part?

Exercise 8-10 Every year Concord Industries manufactures 10,000 units of part 231 for use in its production cycle. The per unit costs of part 231 are as follows: Direct materials   $ 4   Direct labor   9   Variable manufacturing overhead   7   Fixed manufacturing overhead   10   Total   $30   Flintrock, Inc., has offered to sell 10,000 units of part 231 to Concord for $32 per unit. If Concord accepts Flintrock’s offer, its freed-up facilities could be used to earn $11,700 in contribution margin by manufacturing part 240. In addition, Concord would eliminate 40% of the fixed overhead applied to part 231.(a) Calculate total relevant cost to make and net cost to buy. Total relevant cost to make $Enter total relevant cost to make in dollars   Net relevant cost to buy $Enter net relevant cost to buy in dollars   (b) Should Concord accept Flintrock’s offer?Select an option  YesNo     Click if you would like to Show Work for this question: Open Show Work

Question 45 Assume a division of HP Inc currently makes 50,000 circuit boards per year used in producing diagnostic electronic instruments at the cost of 150 per board, considering of variable costs per unit of $35 and feed costs per unit of $15. Further, assume Sarmina Corporation offers to sell HP the 50.000 circuit boards for $50 each if HP accepts this offer the facilities currently used to make the boards could be rented to one of HP's suppliers for $75,000 per year. In addition, $8 per unit of the fixed overhead applied to the circuit boards would be totally eliminated. Should HP outsource this component from Sanmina Corporation Support your answer with relevant cost calculations. Make-or-Buy) Decision.

10 Question View Policies Current Attempt in Progress It costs Concord Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 6400 units at $21 each. Concord would incur special shipping costs of $2 per unit if the order were accepted. Concord has sufficient unused capacity to produce the 6400 units. If the special order is accepted, what will be the effect on net income? O $6400 decrease O $19200 increase O $115200 increase O $6400 increase