A contractor has agreed to build 10 dog houses in 20 days at a price of $800 perunit. 10 days later, the contractor has finished 6 dog houses with an actual totalcost of $5,200. What is the cost variance CV (CV = BCWP - ACWP)?$800$400$-1,200$600

To solve this problem, we need to understand the following terms:Budgeted Cost of Work Performed…

Answered: A contractor has agreed to build 10 dog…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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PROJECT MANAGEMENT
A manual assembly line is being designed for a product with annual demand = 100,000 units. The line will operate 50 wks/year, 5 shifts/wk, and 7.5 hr/shift. Work units will be attached to a continuously moving conveyor. Work content time = 42.0 min. Assume line efficiency E = 0.97, balancing efficiency Eb = 0.92, and repositioning time Tr = 6 sec. Determine: (a) hourly production rate to meet demand, (b) number of workers required.
Suppose that a manufacturer plans to produce 78,000 units of product duringa year. A lot of size L, to be determined, is to be made periodically, andevery time a lot is made, it is necessary to set up the appropriate machineryand other production facilities before production starts. The set up cost is thena fixed cost incurred for each lot produced and it is determined as $ 200. Whenproduction commences , the cost of making a unit is constant at $ 7.5 per unit.Inventory cost is to be determined on the basis that it costs $ 0.50 per year tocarry one unit in inventory. Also find how many lots the manufacturerwould make per year and each lot would be produced in how manydays ?.
please answer within 30 minutes.
A project ABC is planned for 15 months with a budget (BAC) of USD 150,000. If the scheduled percent of work completed after three months is 20% and the actual work completion is 15%, Find the schedule variance and schedule performance index also conclude the project status that you will identify after calculating SV and SVI.
Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are 3,000, and expected number of inspections is 600. The best activity rate for inspection is as follows: a. 40 per inspection b. 40 per hour c. 200 per inspection d. 200 per hour
Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
The seven-month demand for product X is as follows: 500; 6,000; 2,000; 1,500; 4,000; 5,500; and 6,500. You planned to use a level production rate of 4,000 unit per month. a. Compute the cost of the production plan above using the following information: material=P30.00; labor=P9.60; overtime= P14.40; hiring=P500.00; firing=P750; and holding=P5.00/unit.
For February, the cost components of a picture frame include $0.40 for the glass, $0.67 for the wooden frame, and $0.83 for assembly. The assembly desk and tools cost $570. Two hundred fifty frames are expected to be produced in the coming year. What cost function best represents these costs? a. y = 570 + 1.07X b. y = 570 + 1.90X c. y = 1.90 + 570X d. y = 1.07 + 570X

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A contractor has agreed to build 10 dog houses in 20 days at a price of $800 per unit. 10 days later, the contractor has finished 6 dog houses with an actual total cost of $5,200. What is the cost variance CV (CV = BCWP - ACWP)? $800 $400 $-1,200 $600