Required Informatlon[The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each productuses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000units of each product. Its average cost per unit for each product at this level of activity are given belowAlphaBeta$ 24Direct materials3.24Direct laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expenses423427Total cost per unit$173The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars.3. Assume that Cane expects to produce and sell 99,000 Alphas during the current year. One of Cane's sales representatives hasfound a new customer who is willing to buy 29,000 additional Alphas for a price of $156 per unit. What is the financial advantage(disadvantage) of accepting the new customer's order?

The special order can be accepted if it leads to excess profits for the company.

Answered: Required Informatlon [The following…

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: Direct Labor- Hours per unit Rims Posts 0.20 0.70 Annual Production 21,000 units 79,000 units Additional information about the company follows: a. Rims require $19 in direct materials per unit, and Posts require $15. 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: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims $ 34,760 $ 136,670 Direct labor-hours $ 819,000 110 1,000 4,200 Posts 90 0 Total 200 55,300 1,000 59,500 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
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SB (Static) Patel and Sons ... Skip to question [The following information applies to the questions displayed below.] Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90. Brief Exercise 15-19 (Static) Provide the appropriate journal entries... [LO 15-4] Based on the information provided above, provide the appropriate journal entries (a) to record the overhead cost variances…
对 a Required Information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha. $ 42 Beta 2424 32 Direct materials Direct labor Variable manufacturing overhead, Traceable fixed manufacturing overhead, Variable selling expenses, Common fixed expenses 42 26. 34 24 27. 29. 34 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answer to 2 declmal Beta Contribution margin…
Product Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Blinks Dinks Number of Direct Labor Hours Machine Hours Units Per Unit Per Unit 990 2,086 4 Oa. $41.28 Ob. $358.83 Oc. $13.04 Od. $51.60 3 gnmentSession Locator=&inprogress=false 8 5 凸☆ All of the machine hours take place in the Fabrication department, which has an estimated overhead of $86,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $89,700. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is Previous B Next
Requlred Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product Its average cost per unit for each product at this level of activity are given below. Alpha $42 42 $24 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 24 26. 34 27 29. $173 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 4. Assume that Cane expects to produce and sell 109,000 Betas during the current year. One of Cane's sales representatives has found a new customer who is willing to…
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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 0.60 Annual Production 20,000 units 84,000 units Additional information about the company follows: a. Rims require $16 in direct materials per unit, and Posts require $12. 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: Estimated Activity Activity Cost Pool Machine setups Special processing General factory Activity Measure Number of setups Machine-hours Estimated Overhead Cost Rims $ 28,560 80 $ 159,600 6,000 Posts 130 0 Total 210 6,000 Direct labor-hours $ 680,000 14,000 50,400 64,400 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
Make-or-Buy, Traditional Analysis Wehner Company is currently manufacturing Part ABS-43, producing 59,300 units annually. The part is used in the production of several products made by Wehner. The cost per unit for ABS-43 is as follows: Direct materials $47.15 Direct labor 9.65 Variable overhead 2.30 Fixed overhead 4.65 Total $63.75 Of the total fixed overhead assigned to ABS-43, $14,766 is direct fixed overhead (the annual lease cost of machinery used to manufacture Part ABS-43), and the remainder is common fixed overhead. An outside supplier has offered to sell the part to Wehner for $58.92. There is no alternative use for the facilities currently used to produce the part. No significant non-unit-based overhead costs are incurred. Required: 1. Should Wehner Company make or buy Part ABS-43?Wehner should buy the part. This will produce total cost savings of $fill in the blank 2. 2. What is the maximum amount per unit that Wehner would be willing to pay to an outside…
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