Chimwendo manufactures three components, A, A and T using the same machine for each. The budget forthe next year calls for the production and assembly of 4 00 of each component. The variable cost per unit ofthe final product is as follows:Machine hoursVariable cost ($)1 Unit of S3201 Unit of A2361 Unit of T424Assembly20100Only 24 000 hours of machine time will be available during the year and a sub-contractor has quoted thefollowing unit prices for supplying components.S = $29A = $40T= $34Required2/411/29/21, 12:07 PM• Calculate which components Chimwendo should manufacture and which should be supplied by the sub-contractor and the total cost components in that choice• Advise the management of Chimwendo of your decision.

A variable cost is a commercial expense that changes with the quantity of product or service…

Chimwendo manufactures three components, A, A and T using the same ma the next year calls for the production and assembly of 4 00 of each compone the final product is as follows: Machine hours Variable cost (S 1 Unit of S 3 20 1 Unit of A 2 36

Chimwendo manufactures three components, A, A and T using the same ma the next year calls for the production and assembly of 4 00 of each compone the final product is as follows: Machine hours Variable cost (S 1 Unit of S 3 20 1 Unit of A 2 36

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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A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component Machine hours per unit A B с 9 5 O $537,000 O $543,000 O $549,000 O $553,000 12 Show Transcribed Text Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained?
Activity Cost Driver Chosen asAllocation Base Conversion Cost Per Unit ofAllocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 Each windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. The selling price per windsock is: Question 8 options: $13.50. $18.90. $16.10. $88.20.
Answer all subparts a to f.if answered within 30mins,it would be helpful Accounting ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation
d
Activity Cost Driver Chosen asAllocation Base Conversion Cost Per Unit ofAllocation Base Materials handling Number of parts $1.00 Machining Machine hours 60.00 Packaging Number of finished units 2.00 Each windsock requires three parts and spends five minutes in the machining department. The total cost of direct materials and direct labor is $3.50 per windsock. Gale produces 20,000 windsocks each year and sells them at 140% of cost. The total cost of producing the 20,000 windsocks is: Question 7 options: $160,000. $230,000. $270,000. $1,260,000.
Subject: Acounting
please answer within 30 mins.