A company receives a special order to produce 100 units of Product XMaterials required:• 2 kgs per unit• None in stock• Purchase price: £2 per kgLabour required:• 2 hours per unit• Rate per hour: £3• Company has spare labour capacity to do this jobVariable overheads: Calculated at £5 per unitSpecial equipment required for this job: Cost of hire: £200The customer states that his maximum offer is £1,000 for the job.What is total relevant cost for the full order i.e. 100 units of product X?O A. £400O B. £0O C. £1,000O D. £1,100

Economic order quantity is an order quantity that is considered ideal for an organisation . In other…

Answered: A company receives a special order to…

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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Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.70 0.80 Annual Production Additional information about the company follows: a. Rims require $14 in direct materials per unit, and Posts require $10. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory 26,000 units 90,000 units c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Unit product cost of Rims Unit product cost of Posts Activity Measure Number of setups Machine-hours Direct labor-hours Estimated Overhead Cost $ 33,300 $ 172,800 $ 858,000 Estimated Activity Rims 70 3,000 18,200 Posts 230 0 72,000 Total 300 3,000 90,200 2. Determine the unit product cost of each product…
es ! Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor- Hours per unit 0.50 0.80 Annual Production 25,000 units Rims Posts 88,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $17. b. The direct labor wage rate is $15 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Direct labor-hours Unit product cost of Rims Unit product cost of Posts Estimated Overhead Cost $ 26,400 $ 163,680 $ 500,000 Estimated Activity Rims 70 4,000 12,500 Posts 430 0 70,400 Total 500 4,000 82,900 2. Determine the unit product cost of each product…
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Time: 1 hour, 33 minutes, 00 seconds. v Question Completion Status: Question 29 0.75 Kesterson Corporation has provided the following information: Cost per Unit $17.10 $4.10 $1.50 Cost per Period Direct materials Direct labor Variable manufacturing overhead 16,90 Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $2.00 $0.30 $3900 The incremental manufacturing cost that the company will incur if it increases production from 6500 to 6501 units is closest to: O $15.60 O $15.30 $18.20 O $12.70 A Moving to another question will save this response.

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