An electrical utility needs to generate 6,700 megawatts of electricity today. It has five generators (A, B, C, D, and E). If any electricity isgenerated by a given generator, that generator must be started up and a fixed start-up cost is incurred. There is an additional cost foreach megawatt generated by a generator. These costs, as well as the maximum capacity of each generator, are shown in the followingtable.ABFixed start-up cost$3,000$2,000Cost per megawatt/day generatedMaximum capacity (MW/day$5$4$2,500$6D$1,500$6$1,000$72,1001,8002,5001,5003,000Click here for the Excel Data FileFormulate and solve this model on a spreadsheet.a. Determine the minimum cost plan that meets the electrical needs for today.Note: Leave no cells blank. Enter "O" wherever required.Startup generator? (Enter 1 if "Yes", 0 if "No")Megawatt/dayb. Determine the total cost.Total cost

An electrical utility having five generators needs to generate 6,700 megawatts of electricity. There…

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Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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The following information relates to Excalibur Delivery Services: Year 1: Total miles driven 615,000Year 1: Total operating costs $211,500Year 2: Total miles driven 935,000Year 2: Total operating costs $275,500 Use the high-low method to calculate Excalibur’s total fixed costs.
*Note: the correct answer is D per the professor. Can anyone explain the reasoning behind this? See below: ABC Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is currently used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours; the causal factor for the maintenance costs is repair hours. Assume the following information Power Maintenance Assembly Finishing Direct Costs $100K $150K $75K $50 KW Hours 10K 90K 100K Repair Hours 500 2500 2000 ABC decides to switch to Step-down method and cost allocation sequence is based on a ranking of percentage of services provided to other support departments, which of the following best describes this procedure? A. Power department’s costs are allocated to Assembly and Finishing, then Maintenance’s costs are…
A manager must decide between two machines. The manager will take into account each machine's operating costs and initial costs, and its breakdown and repair times. Machine A has a projected average operating time of 131 hours and a projected average repair time of 4 hours. Projected times for machine B are an average operating time of 61 hours and a repair time of 5 hours. What are the projected availabilities of each machine? (Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Availability 0.952 0.945 Machine A Machine B
Please explain each anwer with formula. Regarding the following information, how many machines would be needed to handle the required volume? Processing time per unit (minute) product demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 In order to meet annual demand for all products, how many machines in each type are needed? Based on fixed annual cost (Alternative A with $40,000, B with $30,000 and C with $80,000), which type of machine and how many will cost least to satisfy the demand? Consider the operation of machines 10 hours per day and 200 days a year.
A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information: Determine which is best by after-tax analysis using an income tax rate of 40%, an after-tax MARR of 15%, andSL depreciation. Assume that each has a life of five years and no BV or MV.
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
Using the high-low method, the variable rate is calculated to be $3.00 per machine hour: (S27,950 – $25,160)/(5,430 - 4,500) = $3.00. Using the high-low method, the fixed cost of electricity is calculated to be $11,660: $27,950 - (S3.00 × 5,430) = %3D S11,660. Using this information, construct a Cost Equation for electricity. Explain each element of the equation. Using this equation, estimate the total electricity cost for December, given that the estimated number of machine hours in December will be 5,300. 9. Pate Company is evaluating a project requiring an initial capital expenditure of $806,250. The project has an estimated life of 4 years and no salvage value. The yearly estimated net income and net cash flow from the project is as follows Year Net Cash Flow/Income 0. (806,250) 575,00 502,000 3 409,500 350,500 The company's minimum desired rate of return (cost of capital) is 12% REQUIRED: Calculate the following: (A) Payback Period; (B) Accounting Rate of Return; (C) Present Value…
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Assume that a company has the following data for one of its manufacturing cells: Theoretical velocity – 40 units per hour; Productive minutes available (per year) – 1,200,000; Annual conversion costs - $4,800,000; and Actual velocity – 30 units per hour. choose the correct letter of answer Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute.a.$6b.$8c.$7d.$3 calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute.a.$6b.$8c.$7d.$3
4. What if the units actually produced were 10,000 for Printer A and 18,000 for Printer B. Using DBC, calculate the cost of unused capacity. can you give me the formula
Pia Manufacturing Company has developed the following overhead cost formulas: (refer to image) Based on these cost formulas. The total overhead cost expected if 200 machine hours are worked is: Cost Formula Depreciation P500 Set up P400 plus PO.20 per machine-hour P50 plus PO.25 per machine-hour PO.40 per machine-hour Lubrication Utilities a. P620 b. P900 c. P170 d. P1,120

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