Any company that purchases the new model will need to purchase user manuals to access and operate the system. Also required are specialized computer forms that are sold only by Tamarisk Professionals. User manuals will be sold to clients in cases of 20, at a cost of $310 per case. One manual must be used each time the model is run because each manual includes a non-reusable computer password for operating the system. The specialized computer forms are sold in packages of 240 at a cost of $48 per package. One application of the model requires the use of 40 forms. This amount includes two forms that are generally wasted in each application due to printer alignment errors. The overall cost of the strategic planning model to user clients is $11,500. Most clients will use the model four times each year. Tamarisk Professionals must provide its clients with estimates of ongoing costs that are incurred in operating the new strategic planning model. They would like to provide this information in the form of standard costs. (d) Determine the standard materials cost associated with the user manuals and computer forms for each application of the strategic planning model. (Round answers to 2 decimal places, eg, 12.25.)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
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Any company that purchases the new model will need to purchase user manuals to access and operate the system. Also required are
specialized computer forms that are sold only by Tamarisk Professionals. User manuals will be sold to clients in cases of 20, at a cost of
$310 per case. One manual must be used each time the model is run because each manual includes a non-reusable computer password
for operating the system. The specialized computer forms are sold in packages of 240 at a cost of $48 per package. One application of
the model requires the use of 40 forms. This amount includes two forms that are generally wasted in each application due to printer
alignment errors. The overall cost of the strategic planning model to user clients is $11,500. Most clients will use the model four times
each year.
Tamarisk Professionals must provide its clients with estimates of ongoing costs that are incurred in operating the new strategic
planning model. They would like to provide this information in the form of standard costs.
(d) Determine the standard materials cost associated with the user manuals and computer forms for each application of the strategic
planning model. (Round answers to 2 decimal places, e.g, 12.25.)
Transcribed Image Text:Any company that purchases the new model will need to purchase user manuals to access and operate the system. Also required are specialized computer forms that are sold only by Tamarisk Professionals. User manuals will be sold to clients in cases of 20, at a cost of $310 per case. One manual must be used each time the model is run because each manual includes a non-reusable computer password for operating the system. The specialized computer forms are sold in packages of 240 at a cost of $48 per package. One application of the model requires the use of 40 forms. This amount includes two forms that are generally wasted in each application due to printer alignment errors. The overall cost of the strategic planning model to user clients is $11,500. Most clients will use the model four times each year. Tamarisk Professionals must provide its clients with estimates of ongoing costs that are incurred in operating the new strategic planning model. They would like to provide this information in the form of standard costs. (d) Determine the standard materials cost associated with the user manuals and computer forms for each application of the strategic planning model. (Round answers to 2 decimal places, e.g, 12.25.)
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