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

"Since you have asked multiple questions, we will solve first question for you. If you want any…

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

See similar textbooks

Similar questions

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
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?
None
Gadubhai
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,…
I need c and d part