RELEVANT COSTS FOR NON-ROUTINE DECISION MAKINGcompany produces two joint products (X and Y) from one unit of3.raw materials, which costs P5,000. Conversion costs incurred inthe joint manufacturing process amount to P10,000.The two products can be sold at the split-off point or they can beprocessed further and sold at a higher price. The sales values ofthe two products are:Sales Value at theSplit-off PointP1,000Sales Value afterFurther ProcessingP1,9001,500Product XProduct Y800The additional processing costs is P750 per unit for both ProductsX and Y.If the objective is to maximize profit, which product should thecompany process beyond the split-off point?a.Product X onlyb.Product Y onlyC.Both Products X andYd.Neither Product X nor Product Yto search ADVANCED FINANCIAL ACCOUNTING & REPORTING (afar)32 / 3775%2. Arian Corporation manufactures a component part with thefollowing standard costs:Direct materialsDirect laborFactory overheadStandard cost per unitP 61560P81Factory overhead is applied at P2 per standard direct labor hour.Thirty percent (30%) of the applied FOH cost is fixed and is notaffected by any make-or-buy decision.The component part can be purchased from outside suppliers atP73 per unit.In the decision to "make or buy," what is the total relevant unitmanufacturing cost?а. Р81b. P63C. P73d. P39RELEVANT COSTS FOR NON-ROUTINE DECISION MAKINGType here to search

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32 /37 75% Arian Corporation manufactures a component part with the following standard costs: Direct materials Direct labor 2. P 6 15 Factory overhead Standard cost per unit 60 P81 Factory overhead is applied at P2 per standard direct labor hour. Thirty percent (30%) of the applied FOH cost is fixed and is not affected by any make-or-buy decision. The component part can be purchased from outside suppliers at P73 per unit. In the decision to "make or buy," what is the total reievant unit manufacturing cost? а. Р81 b. Р63 C. P73 d. P39 RELEVANT COSTS FOR NON-ROUTINE DECISION MAKING o search

32 /37 75% Arian Corporation manufactures a component part with the following standard costs: Direct materials Direct labor 2. P 6 15 Factory overhead Standard cost per unit 60 P81 Factory overhead is applied at P2 per standard direct labor hour. Thirty percent (30%) of the applied FOH cost is fixed and is not affected by any make-or-buy decision. The component part can be purchased from outside suppliers at P73 per unit. In the decision to "make or buy," what is the total reievant unit manufacturing cost? а. Р81 b. Р63 C. P73 d. P39 RELEVANT COSTS FOR NON-ROUTINE DECISION MAKING o search

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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nttps:25A%252F%252HM..mh A company allocates materials handling cost to the company's two products using the below data: Product A Product B Total expected units produced 5,400 11,800 Total expected material 530 470 moves Expected direct labor-hour 670 150 per unit The total materials handling cost for the year is expected to be $182,000. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total materials handling cost would be allocated to the Product B? (Round your intermediate calculations to 5 decimal places.) Multiple Choice $97,944 $74,263 $35,671 $59.791
15 Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $ 6.20 $ 3.70 $ 1.60 $ 4.00 $ 3.20 $ 2.20 $ 1.20 $ 0.45 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total foxed manufacturing cost
Schwiesow Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice O $38,000 O $39,000 Variable administrative expense Fixed selling and administrative expense $ 6,000 If 9,500 units are produced, the total amount of manufacturing overhead cost is closest to: O $37,000 Cost per Unit $ 7.60 $3.40 $ 2.00 $52.300 $ 1.00 $ 0.30 Cost per Period $ 20,000
Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $13 $8 Demand for "W" is 241 units and "H" is 308 units If Costner only 178 labor hours available, how many units of "H" should be manufactured? Round your final answer to the nearest whole unit.
The following standard costs pertain to a component part manufactured by Ashby Company:Direct materials$2Direct labour5Manufacturing overhead 20 Standard cost per unit $27The company can purchase the part from an outside supplier for $25 per unit. The manufacturing overhead is 60% fixed and this fixed portion would not be affected by this decision. Assume that direct labour is an avoidable cost in this decision. What is the relevant amount of the standard cost per unit to be considered in a decision of whether to make the part internally or buy it from the external supplier?
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Course: Accounting for Decision Making and Control The West Point plan of Walkers Electronics Company has the following standards for component C91: Standards: Material 2 units of material B Material Price $10 per unit of B Direct labor 1 hour Wage rate $10 per direct labour hour Variable support cost rate $25 per direct labour hour Actual results for March Used 4,200 units of B, purchased at $9.75 per unit of B Paid for 2,000 direct labour hours at $11 per hour Incurred $48,000 of variable support costs Manufactured 2,000 units of component C91 Required: Determine any (5) five of following variances for March: Total direct material…
Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Amount per Unit $ 7.60 $ 4.60 $ 2.10 $ 5.60 $ 4.10 $ 3.10 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 19,000 units are produced,…
The standard costs and actual costs for direct materials for the manufacture of 3,000 actual units of product are Actual Material price per pound of direct material Quantity of material in pound per unit of product Actual production untis of product BDMOV (AQ SQ) for Actual Production x SP C DMCV DMPV + DMOV Actual cost per unit of product (AC) Standard costs per unit of product (SC) $8.00 Alternate formula to compute DMCV= (Actual cost-standard cost) per unit x # of units 065 3,000 Required: Compute the followings variances and indicate if they are favorable (F) or unfavorable (UF) A. Direct material Price variance (DMPV) B. Direct matenal Quantity variance (DMQV) C. Total Direct material Cost variance (DMCV) Solution: A.DMPV = (AP-SP) x AQ for Actual Production Standard Variance $ For UF ($1,462 50) F ($5,250.00) F AQ $8.75 SQ 0.45 ($6.712 50) F 1950 1350 Acronyms: AP Actual price per unit of Material SP Standard price per unit of Material AQ-Actual quantity of Material for Actual…
I need c and d part
Vijay Company reports the following information regarding its production costs. Direct materials Direct labor $ 11.00 per unit 2$ 21.00 per unit Overhead costs for the year Variable overhead Fixed overhead 2$ 11.00 per unit $ 270,000 30,e00 units Units produced Compute its product cost per unit under absorption costing. (Round your answer t Product cost per unit