%24 %24 4/15 arsoncmg.com/api/v1/print/highered B. The company should consider the capital investment needed to start and support a new product line, as well as the demand for a new product. O C. The company should consider if there is available labor and machine hours before increasing production to use the space. O D. None of the above. 4: Data Table Prector's Netballs Budgeted Costs and Activities for the Year Ended December 31, 2020 Direct materials-basketballs 251,500 Direct materials-volleyballs 201,050 Direct manufacturing labor-basketballs 108,700 Direct manufacturing labor-volleyballs 97,150 Setup Equipment and maintenance costs Lease rent $4 1,152,000 Total 5: Data Table Other budget information follows: Basketballs Volleyballs Number of balls 000'6 Machine-hours 10,500 11,500 Number of setups 150 250 Square footage of production space used 3,270 9,530 6: Requirements 1. Calculate the budgeted cost per unit of cost driver for each indirect-cost pool. 2. What is the budgeted cost of unused capacity? 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? Why might excess capacity be beneficial for Prector? What are some of the issues Prector should consider before 4. increasing production to use the space? 10/8/2021 Chapter 5 - Homework-sehrish bashir %3D 4(Click the icon to view the budgeted information.) Read the requirements. (Click the icon to view other information.) Requirement 1. Calculate the cost per unit of cost driver for each indirect-cost pool. used: "equip." = equipment, "maint." = maintenance.) %3D %3D (2) Cost driver rate %3D Setup (1) (3) %3D Equip. and Maint. () (5) %3D Lease rent, etc. %3D Requirement 2. What is the budgeted cost of unused capacity? Select the formula you will use, then calculate the cost of unused capacity. Cost of unused capacity (9) (2) %3D Requirement 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? (Enter the cost per unit to the nearest cent.) Basketballs Volleyballs Total Direct materials Direct manufacturing labor Setup Equipment and maintenance Lease rent, etc. Budgeted total costs Number of units Budgeted cost per unit Requirement 4. Why might excess capacity be beneficial for Prector? What are some of the issues Prector should consider before increasing production to use the space? Why might excess capacity be beneficial for Prector? (Select all that apply.). A. Having excess capacity allows for the company to accept special orders if they are received. B. The excess capacity could allow for expanded production of either of the existing models. C. The excess capacity is costing Prector money and, therefore, cannot be beneficial to Prector. D. The company could consider adding a new product line. What are some of the issues Prector should consider before increasing production to use the space? (Select all that apply.) DA The company should considering how much they could take in in rent if they opt to rent out the unused space. ttns://xlitemprod.pearsoncmg.com/api/v1/print/highered

%24 %24 4/15 arsoncmg.com/api/v1/print/highered B. The company should consider the capital investment needed to start and support a new product line, as well as the demand for a new product. O C. The company should consider if there is available labor and machine hours before increasing production to use the space. O D. None of the above. 4: Data Table Prector's Netballs Budgeted Costs and Activities for the Year Ended December 31, 2020 Direct materials-basketballs 251,500 Direct materials-volleyballs 201,050 Direct manufacturing labor-basketballs 108,700 Direct manufacturing labor-volleyballs 97,150 Setup Equipment and maintenance costs Lease rent $4 1,152,000 Total 5: Data Table Other budget information follows: Basketballs Volleyballs Number of balls 000'6 Machine-hours 10,500 11,500 Number of setups 150 250 Square footage of production space used 3,270 9,530 6: Requirements 1. Calculate the budgeted cost per unit of cost driver for each indirect-cost pool. 2. What is the budgeted cost of unused capacity? 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? Why might excess capacity be beneficial for Prector? What are some of the issues Prector should consider before 4. increasing production to use the space? 10/8/2021 Chapter 5 - Homework-sehrish bashir %3D 4(Click the icon to view the budgeted information.) Read the requirements. (Click the icon to view other information.) Requirement 1. Calculate the cost per unit of cost driver for each indirect-cost pool. used: "equip." = equipment, "maint." = maintenance.) %3D %3D (2) Cost driver rate %3D Setup (1) (3) %3D Equip. and Maint. () (5) %3D Lease rent, etc. %3D Requirement 2. What is the budgeted cost of unused capacity? Select the formula you will use, then calculate the cost of unused capacity. Cost of unused capacity (9) (2) %3D Requirement 3. What is the budgeted total cost and the cost per unit of resources used to produce (a) basketballs and (b) volleyballs? (Enter the cost per unit to the nearest cent.) Basketballs Volleyballs Total Direct materials Direct manufacturing labor Setup Equipment and maintenance Lease rent, etc. Budgeted total costs Number of units Budgeted cost per unit Requirement 4. Why might excess capacity be beneficial for Prector? What are some of the issues Prector should consider before increasing production to use the space? Why might excess capacity be beneficial for Prector? (Select all that apply.). A. Having excess capacity allows for the company to accept special orders if they are received. B. The excess capacity could allow for expanded production of either of the existing models. C. The excess capacity is costing Prector money and, therefore, cannot be beneficial to Prector. D. The company could consider adding a new product line. What are some of the issues Prector should consider before increasing production to use the space? (Select all that apply.) DA The company should considering how much they could take in in rent if they opt to rent out the unused space. ttns://xlitemprod.pearsoncmg.com/api/v1/print/highered

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 28BEB: Brief Exercise 3-28 Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a...

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