Consider Miller Chemicals that produces water purification crystals for swimming pools. The major inputs used in the production process are labor, raw materials and energy. The labor costs are $200,000; raw materialscosts are $80,000; and energy costs are $9,000. Labor costs in year two are $350,000; raw materials costs $95,000; and energy costs $11,000. Labor costs in year three are $350,000; raw materials costs $40,000; andenergy costs $6,000. Miller Chemical produced 100,000 pounds of crystal in year 1; 150,000 pounds of crystals in year 2, and 184, 500 pounds of crystals in year 3. The productivity in year two increases/decreases byBlank 1 and the productivity from year one to year three increases/decreases by Blank 2. (Enter your numbers only. R

The objective of the question is to calculate the change in productivity from year one to year two…

Answered: Consider Miller Chemicals that produces…

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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Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,800,000. You have been provided with the following information for the upcoming year: Large Small Calls 150,000 90,000 The cost accountant determined $2,760,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is the total communication network costs allocated to the Large Box Division, assuming the company uses dual-rates to allocate common costs? Multiple Choice $2,760,000 $2,259,000 $2,541,000 Time on Network (hours) 160,000 240,000 $1,640,000
Linwood Company recently began production of a new navigation device, which required a capital investment of $660,000. Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 77,000 devices: Per Unit Total (77,000 units) Direct Materials $12 Direct Labor $26 Variable Manufacturing Overhead $14 Selling and Administrative Expenses $17 Fixed Manufacturing Overhead $223,000 General and Administrative Expenses $73,000 Required:Do not enter dollar signs or commas in the input boxes.Round all answers to 2 decimal places.a) Using the cost plus pricing method, calculate the markup percentage.Full Cost: $AnswerMarkup Percentage: Answer%b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a).…
4.)
Check my work Required information [The following information applies to the questions displayed below.] Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 55,200 machine hours per year, which represents 27,600 units of output. Annual budgeted fixed factory overhead costs are $276,000 and the budgeted variable factory overhead cost rate is $3.70 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 21,500 units, which took 44,200 machine hours. Actual fixed factory overhead costs for the year amounted to $264,800 while the actual variable overhead cost per unit was $3.60. Based on the information provided above, calculate the following factory overhead variances for the year. Indicate whether each variance is favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round…
33) What is the cost to produce one unit ? Each unit takes 4 pounds of material and each pound costs $5. Each unit takes 2 hours of direct labor time and workers are paid $20 per hour. Overhead is applied based on machine time. Each unit requires 3 hours of machine time and each hour of costs $4 of which $0.30 is depreciation. General and administrative costs are $900,000 and 100,000 units are produced and sold.
ABC INC product is currently produced at 10 materials, 40 labor and 15 overhead. If automation is implemented, the product can be produced at 10 materials, 5 labor and 35 overhead. At a total of 10,000 units, what is the net incremental cost or benefit if the production decides to move into automation?
A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The following data have been compiled for comparison of the two incinerators: If the firm's MARR is known to be 13%. determine the processing cost per tonof solid waste for each incinerator. Assume that incinerator B will be availablein the future at the same cost.
Muspest Supplies is currently evaluating the cost of manufacturing some of the components utilised in their products. Currently the company expects to need 6 000 parts each month. A supplier of the part has been identified and the total cost of purchasing the parts on a monthly basis would be $97 000. In analysing the part costs, the direct labour and materials cost would be $64 000 and the variable overheads would be $22 000.Based only on the relevant cost per unit, which would be the preferred option of Muspest Supplies?HD EDUCATIONA. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case, the best option would be to commence purchasing the part.B. Unit costs to produce the part would be $10.67 with the unit cost to purchase of $ 16.17. In this case, the best option would be to continue to make the part.C. None of the other answers D. Unit costs to produce the part would be $14.33 with the unit cost to purchase of $ 16.17. In this case,…
The grinding machines are potentially the constraint in the production facility. A total of 52,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. How many minutes of grinding machine time would be required to satisfy demand for all four products? A.23,940 B.5,200 C.52,400 D.17,190

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