6.An IPS manufacturing companychanges the production system from thepresent system to a new system. With thepresent system, the company uses 40workers, who can produce on an average 20and 30 IPS per day of type-1 andtype-2 respectively, but on average 10%manufactured IPS are rejected. Each workerreceives Tk. 12000 per month andtools and equipment cost (i.e., machinecost for the first system) was Tk.30000 perday. With the new system, thecompany can produce 40 and 60 IPS perday of type-1 and type-2 respectively withno rejection. The machine of thenew system costs 60 million takas and theoperation life of the machine is 8 years.Five operators are required tooperate the new machine. The wage ofeach of the operators is Tk. 30000 permonth. The price of the type-1 and type-2IPS is Tk.25000 and Tk.32000 per unitrespectively. Part/material cost is 40% and45% of the price of type-1 and type-2respectively. Consider 25 working days in amonth.a) Compute labor and machineproductivity under each system.b) Compute the overall productivity undereach system.c) Explain what the main factor of thisproductivity is.

Name: 6.An IPS manufacturing companychanges the production system from thep
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 6.An IPS manufacturing companychanges the production system from thepresent system to a new system. With thepresent system, the company uses 40workers, who can produce on an average 20and 30 IPS per day of type-1 andtype-2 respectively, but on avera

calculation of above requirement are as follows

Business

Accounting

6. An IPS manufacturing company changes the production system from the present system to a new system. With the present system, the company uses 40 workers, who can produce on an average 20 and 30 IPS per day of type-1 and type-2 respectively, but on average 10% manufactured IPS are rejected. Each worker receives Tk. 12000 per month and tools and equipment cost (i.e.. machine

6. An IPS manufacturing company changes the production system from the present system to a new system. With the present system, the company uses 40 workers, who can produce on an average 20 and 30 IPS per day of type-1 and type-2 respectively, but on average 10% manufactured IPS are rejected. Each worker receives Tk. 12000 per month and tools and equipment cost (i.e.. machine

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

Storch Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Stanley's non-value-added cost would be: so. $150. $300. S900. $1,200.
The Asian Transmission Co. produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 9 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000
A cement company produces preformed concrete blocks that requires three (3) hours of machine time. Machine hours are a scarce resource as a result of the productive capacity of the machines. The company has 70 machines. Each machine works 7 hours per day. The factory operates five (5) days per week and 50 weeks annually. The company sells each unit of this product for $360 and the product uses direct material costing $60 per unit. The total factory operating cost includes direct labour and production overheads. The average direct labour hour rate is $25 per hour. The company has 95 employees during the period who actually worked 8 hours per day. Overheads are absorbed using direct labour hours. The budgeted overheads for the period are $3,500,000. While the budgeted direct labour hours were 100,000 hours. Required: (a) Calculate the return per factory hour. (b) Calculate the cost per factory hour. (c) Calculate the TPAR.
Product A is produced with the following costs: 1) Paper material P20 per unit 2) Plastic P15 per unit 3) Rubber P27000 per 12000 units. 4) Labor P4 per unit 5) Indirect material costs P2.5 per unit The company pays P60,000 for rent per month for factory. It depreciates a P300,000 vehicle used for delivery and a P210,000-machine used for manufacturing, both have a life of 5 years. a. How much should be the total overhead costs if in a month, 1000 units were produced? b. How much should be the direct material costs if in a month, 1,500 units were produced? c. How much is the total conversion cost if 3,000 units are produced? d.How much is the total product cost per unit if in a month of production 4,750 units were produced? e. How many units should be sold in a month to break even?
Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.80. Direct materials $3.50 Direct labor 1.10 Variable overhead 0.40 Fixed overhead (primarily depreciation of equipment) 2.80 Total $7.80 Using the information provided, calculate the annual financial impact of hiring the extra worker. Profit $_____ ______
6. Plumbing Company makes 4,000 units per year of a part called an axial tap for use in one of its products. Data concerning the unit production costs of the axial tap follow: Direct materials Direct labor £35 10 8 20 Variable manufacturing overhead ... Fixed manufacturing overhead Total manufacturing cost per unit... £73 An outside supplier has offered to sell Plumbing Company all of the axial taps it requires. If Plumbing Company decided to discontinue making the axial taps, 40% of the above fixed manufacturing overhead costs could be avoided. Assume that direct labor is a variable cost. Required: a. Assume Plumbing Company has no alternative use for the facilities presently devoted to production of the axial taps. If the outside supplier offers to sell the axial taps for £65 each, should Plumbing Company accept the offer? Fully support your answer with appropriate calculations. b. Assume that Plumbing Company could use the facilities presently devoted to production of the axial taps…
Calculate The variable cost of a surfboard
Clone Computers assembles and packages personal computer systems from brand-name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month. a. How many Home Office systems must be sold each month to break even on this product line? b. What will be the profit or loss for a month in which 15 Home Office systems are sold?
Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 2,900 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.50. Direct materials $3.40 Direct labor Variable overhead Fixed overhead (primarily depreciation of equipment) Total 1.00 0.40 2.70 $7.50 Using the Information provided, calculate the annual financial Impact of hiring the extra worker. Profit $ ✓ Increase
Steve company produces 30000 units of parts each year for use on its production line. The cost per units of the part S6: Direct material $3.60 Direct labor $10.00 Variable manufacturing overhead $2.40 Fixed manufacturing overhead $9.00 Total cost per part$25.00 An outside supplier has offered to sell 30000 units of the part each year at a product company at $21.00 per part. If the products company accepts this offer, the facilities now being used to manufacturer the parts could be rented by another company at the annual rent of $80,000.00. However, the products have determined that two-thirds of the fixed manufacturing overhead being applied to the part would continue even if the part S6 was purchased by an outside supplier. What is the advantage or disadvantage of accepting the outside supplier's offer? and how much ?
Nakuru Manufacturing limited operates at normal capacity. It manufactures 800,000units of a product per year. The unit cost manufacturing at normal capacity is as follows:Kshs.Direct materials 20.00Direct labour 7.00Variable overheads 5.00Fixed overheads 10.00Selling price 50.00During the next three months. only 40,000 units can be produced and sold. Managementplans to shut down the factory, estimating that the manufacturing overhead can bereduced to Kshs.296,000 for the quarter when the factory is not operating; the fixedoverhead costs are incurred at uniform rate throughout the year. Additional costs offactory shutdown for 3 months are estimates at Kshs.56,OOO.Examine if the factory should shut down for 3 months with relevant calculations.
PLEASE DO NOT REJECT AND SHOW ME THE SOLUTION IN GOOD ACCOUNTING FORM.