Financial Accounting Question please answer with explanation Alpha Tech produces a single product. The cost of producing and sellinga single unit of this product at the company's normal activity level of80,000 units per year is:••••Direct materials: $2.50Direct labor: $4.00Variable manufacturing overhead: $1.00Fixed manufacturing overhead: $4.00Variable selling and administrative expenses: $1.50Fixed selling and administrative expenses: $3.00The normal selling price is $30.00 per unit. The company's capacity is100,000 units per year. An order has been received from a bulk buyerfor 3,000 units at a special price of $27.00 per unit. This order would notaffect regular sales or the company's total fixed costs.What is the financial advantage (disadvantage) of accepting the specialorder?

Step 1: Definition of Financial Advantage (Disadvantage)Financial Advantage or Disadvantage is the…

Answered: Alpha Tech produces a single product.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
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Delta Company produces a single product. The cost of producing and selling a single unit of thisproduct at the company’s normal activity level of 60,000 units per year is:Direct materials $5.10Direct labor $3.80Variable manufacturing overhead $1.00Fixed manufacturing overhead $4.20Variable selling and administrative expense $1.50Fixed selling and administrative expense $2.40The normal selling price is $21 per unit. The company’s capacity is 75,000 units per year. Anorder has been received from a mail-order house for 15,000 units at a special price of $14.00 perunit. This order would not affect regular sales or the company’s total fixed costs.Required:What is the financial advantage (disadvantage) of accepting the special order?
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 99,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses. Fixed selling and administrative expenses $ 1.90 $ 4.00 $ 0.60 $ 3.45 $ 1.90 $ 3.00 The normal selling price is $21.00 per unit. The company's capacity is 127,200 units per year. An order has been received from a mail-order house for 2,300 units at a special price of $18.00 per unit. This order would not affect regular sales or total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units that are inferior quality. The units must be sold through regular channels at a reduced price. The company does not expect the selling of these…
Hardev
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 105,600 units per year is: $ 2.00 $ 2.00 $ 1.00 $ 4.25 $ 1.20 $ 1.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense The normal selling price is $22.00 per unit. The company's capacity is 117,600 units per year. An order has been received from a mail-order house for 1,000 units at a special price of $19.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels…
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Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 85,200 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense $ 1.90 $ 2.00 $ 0.80 $ 4.35 $ 1.30 $ 1.00 The normal selling price is $24.00 per unit. The company's capacity is 109,200 units per year. An order has been received from a mail- order house for 2,000 units at a special price of $21.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels…
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 87,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed nanufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $2.40 5 3.00 5 0.80 $ 4.15 $ 1.70 $ 2.00 The normal selling price is $22.00 per unit. The company's capacity is 120,000 units per year. An order has been received from a mail- order house for 2,700 units at a special price of $19.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the financial advantege (disadvantage) of accepting the special order?
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