Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780134162690
Author: Chan S. Park
Publisher: PEARSON
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Chapter 8, Problem 4P
(a):
To determine
Calculate the total
(b):
To determine
Calculate the manufacturing cost per unit.
(c):
To determine
Calculate the total variable cost
(d):
To determine
Calculate the variable cost per unit.
(c):
To determine
Calculate the total cost to recover.
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ABC Company has the following information: Variable Cost per Unit is P 15; Fixed Expenses is P54,000; and Selling Price per Unit is P20. What should be the selling price per unit if break-even point is brought down to 6,000 units?
ABC Company has the following information: Variable Cost per Unit is P 15; Fixed Expenses is P54,000; and Selling Price per Unit is P20. If the company will only sell 10,000 units for the month, how much profit or loss will they get?
Henleigh Hill, CFO of HH Corp., uses a decentralized company processing center for check collection. She estimates that the total annual cost of collections is currently $300,000. Henleigh is considering switching to a centralized company processing center, but she is worried about the required increase in fixed costs. Use the following assumptions to determine the maximum fixed cost of the centralized company processing center that would make Henleigh indifferent between a decentralized or centralized company processing center.
Number of checks processed per year = 450,000
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Opportunity cost rate = 5 percent
At the beginning of the year, managers at King Industries estimated $420000 in manufacturing overhead, 20000 direct labor hours and 50000 machine hours. Actual manufacturing costs at the end of the year were $425000 in manufacturing overhead. During the year, 22000 direct labor hours and 47000 machine hours were incurred. If overhead is applied based on direct labor hours, what is the predetermined overhead rate for the coming year?
$21.00 per direct labor hour
$8.40 per direct labor hour
$19.09 per direct labor hour
$9.04 per direct labor hour
Chapter 8 Solutions
Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
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