RequIred Informotion(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 producuses 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 below.Alpha$4242$2432Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expenses3429.$173Total cost per unitThe 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.10. Assume that Cane expects to produce and sell 74,000 Alphas during the current year. A supplier has offered to manufacture adeliver 74,00O Alphas to Cane for a price of $156 per unit. What is the financial advantage (disadvantage) of buying 74,000 unitsthe supplier instead of making those units?( Prev10 11 1215 of 15 田e to search

Total Relevant cost of Alpha = (Direct material + direct labor + variable manufacturing overhead) x…

Answered: RequIred Informotion (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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TB Problem Qu. 4-209 Daba Company manufactures two products, Product F ... Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,400 units of Product F and 2,800 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year: Estimated Expected Activity Activity Cost Pool Overhead Cost Product F Product G Total Machine setups $ 16,720 132 setups 88 setups 220 setups Purchase orders $ 90,640 741 orders 1,319 orders 2,060 orders Order size $ 52,080 1,290 hours 1,190 hours 2,480 hours Required: Using the activity-based costing approach, determine the overhead cost per unit for each product. (Round your answers to 2 decimal places.) What is the overhead cost per unit for F and G.
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…
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Required: 1. What is the unit product cost under variable costing? $ 27 $ 12 $ 3 $5 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 is a common fixed expense. The company will continue to incur the total amount of its…
answer all parts completely and correctly with all working and steps remember answer all parts in t form
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Required information Skip to question [The following information applies to the questions displayed below.] Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.50 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Required: For financial accounting purposes, what is the total product cost incurred to make 20,000 units? For financial accounting purposes, what is the total period cost incurred to sell 20,000 units? For financial accounting purposes, what is the total product cost incurred to make 22,000 units? For financial accounting purposes, what is the total period cost incurred to sell 18,000 units? Note: For all requirements, do…
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…
5
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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