ABC-Comprehensive Question - Template

Please answer quick in 30 minutes. Prepare a comprehensive report to management highlighting three-year make-or-buy unit cost analysis and recommend appropriate action. What are the other non-cost variables that would be helpful in this analysis? As a manufacturing analyst, you are a member of a make-or-buy review team for electric components and work for a multinational company, TransAll Ltd. Your marketing group estimates the following volumes for a component required for motor assembly: Year 1; 300,000 units, Year 2: 500,000 units, Year 3: 200,000 units. A Chinese supplier has quoted the price as Mu(monetary unit) 0.10 per unit with 10 % price decrease per year for year 2 and 3 for the same component. . Shipping and handling costs are expected to be Mu 0.01 per unit for years 1 through 3. Additional inventory handling charges are Mu 0.005 per unit. In addition, purchasing costs are estimated at Mu 20 per purchase order with a purchase order being released every month for the…

Vaibhav

Q.Identify the cost hierarchy level for each cost category

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is Increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Selling Next year Price (units) per Unit $ 26.00 $ 7.50 $ 41.50 $ 11.00 $ 8.80 Demand Direct Direct Product Materials Labor $ 2.10 $ 8.78 $ 3.90 $ 2.70 $ 8.48 Debbie 58,000 5e, 000 43,000 $5.10 Trish $1.90 Sarah $7.64 Mike 48, 000 $2.80 Sewing kit 333,000 $4.00 The following additional Informatlon is avallable: a. The company's plant has a capacity of 92,190 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $6 per hour is expected to remaln unchanged during the coming year. C. FIxed manufacturing costs total $600,000 per year. Varlable overhead costs are $3 per direct labor-hour. d. All of the…

Denger

Please help solve all questions show relevant working

Display Design Incorporated (DDI) is a new company that creates display cases for various types of collectibles. DDI has hired you as an accountant to help measure and evaluate costs. Your first day on the job, they provide you with the following interactive dashboard concerning the prior month's costs.

Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case. Sales Costs: Activity Rates $2 per direct labour-hour $19 per order $60 per customer Direct materials Direct labour Supporting manufacturing Order processing Customer service The company's direct labour rate is $20 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin Standard Model…

Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case The company's direct labour rate is $19 per hour. Sales Costs: Activity Rates $3 per direct labour-hour $15 per order $50 per customer Direct materials Direct labour Supporting manufacturing Order processing Customer service Customer margin Standard Deluxe Model Model 120 35 23 ta ta OSOF 0.20 $ $ 5 35 10 64 $9 $ Required: Using the…

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ABC Pumps is a division of ABC Controls. The division manufactures and sells a pump in a variety of applications. During the coming year, it projects the following sales: 25,000 units $17 per unit The manager is considering producing either this level or 10,000 units more. The following information is available to help in the decision: 0 Beginning Inventory 25,000 Expected Sales in Units $17.00 Expected Sales Price per Unit $6.00 Variable Manufacturing Cost per Unit $140,000 Total Fixed Manufacturing Overhead $5.60 Fixed Manufacturing Costs $4.00 Fixed Manufacturing Costs (Plus 10,000 Units) $11.60 Total Manufacturing Costs Including Fixed $10.00 Total Manufacturing Costs Including Fixed (Plus 10,000 Units) $37,000 Selling and Admin Costs (All Fixed) Instructions A. Prepare an absorption costing income statement showing results for both levels of production. B. Why is income different for the two production levels when the sales levels are the same, either way?