2. Ytze Inc. manufactures bath cubicles. The following activity information is available for its cubicles:ActivityFabricationAssemblySetupMaterials handlingActivity cost per unitActivity-based usage(hours per unit)Activity rate per hourActivity cost0.503216.000.404016.000.25328.000.30309.0049.00Management is looking to remove $7.00 of activity cost from the product in order to make the price more competitive. Assume the process improvement is put in place such thatassembly as well as setup required one-fourth less time to complete per unit.Based on the data, identify the correct statement.a. These process improvements reduced the activity cost of each battery from $49.00 to $43.00, or $6, thus not exceeding the $7.00 target.b. These process improvements reduced the activity cost of each battery from $49.00 to $44.00, or $5, thus not exceeding the $7.00 target.c. These process improvements reduced the activity cost of each battery from $49.00 to $42.00, or $7, thus exceeding the $7.00 target.d. These process improvements reduced the activity cost of each battery from $49.00 to $41.00, or $8, thus exceeding the $7.00 target.b Ytze Inc. manufactures bath cubicles. The following activity information is available for its cubicles: Management is looking to remove $7.00 of activity cost from the product in order to make the price more competitive. Assume the processimprovement is put in place such assembly as well as setup required one-fourth less time to complete per unit. Based on the data, identify the correct statement. a. These process improvements reduced the activity cost of each battery from $49.00to $43.00, or $6, thus not exceeding the $7.00 target. b. These process improvements reduced the activity cost of each battery from $49.00 to $44.00, or $5, thus not exceeding the $7.00 target. c. These process improvements reduced the activitycost of each battery from $49.00 to $42.00, or $7, thus exceeding the $7.00 target. d. These process improvements reduced the activity cost of each battery from $49.00 to $41.00, or $8, thus exceeding the $7.00 target.

Activity-Based Costing (ABC) is a cost accounting method that assigns indirect costs to products or…

Answered: Based on the data, identify the correct…

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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Cost of Quality and Value-Added/Non-Value-Added Reports for a Service Company Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Value-Added/ Activity Quality Cost Non-Value-Added Quality Control Activities Cost Classification Classification Billing error correction $46,200 Cable signal testing 115,500 Reinstalling service (installed incorrectly the first 99,300 time) Repairing satellite equipment 46,200 Repairing underground cable connections to the 30,000 customer Replacing old technology cable with higher quality 158,500 cable Replacing old technology signal switches with 181,100 higher quality switches Responding to customer home repair requests 55,500 Training employees 37,700 Total activity cost $770,000
a. Determine the activity cost per patient for the coronary bypass treatment. Activity cost per patient $ b. Assume the hospital was able to make improvements such that the average length of stay in the hospital for the bypass was reduced from 6 days to 5 days. Further assume that additional improvements in medical technology reduced the operating room time for a bypass to 2½ hours. Determine the activity cost per patient for the coronary bypass treatment under these revised conditions. What is the cost improvement? The cost of treating a patient for a coronary bypass declined from $ to $, or $.
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Based on the following sensitivity report, what would be the impact of changing the constraint right-hand side for Resource_A to 77 and, at the same time, changing the constraint right-hand side for Resource_C to 550? Variable Cells Final Objective Allowable Allowable Cell Name Value Reduced Cost Coefficient Increase Decrease $B$2 $B$3 Product 1 -2 5. 2 1E+30 Product 2 175 7 1E+30 1 $B$4 Product 3 -1.5 1.5 1E+30 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H.Side Increase Decrease $H$9 Resource_A Resource B Resource C 100 1E+30 20 $H$10 525 800 1E+30 220 $H$11 700 1.75 700 200 110 100%. Applying the 100% rule, because the total change in the constraint right-hand sides
Crane Company has gathered the following information. Units in beginning work in process Units started into production 37,000 Units in ending work in process 7,000 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $ 72,150 Direct labor $61,100 Overhead $ 101,260
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Based on the data, identify the correct statement. a. These process improvements reduced the activity cost of each battery from $49.00 to $43.00, or $6, thus not exceeding the $7.00 target.