None Consider the data in the table below, which applies to the provision of languageproficiency testing services. Calculate the full absorption cost per unit (one unit = onetest) if the number of tests is 500 per month.Sales per unit: $280Fixed costs (per month):Selling and administration: $18,000Production overhead: $20,000Variable costs (per test):Labor for oversight and feedback: $110Outsourced test analysis: $30Materials used in testing: $9Production overhead: $18Selling and administration: $14

Step 1: Definition of Full Absorption Cost per UnitThe full absorption cost per unit refers to the…

Answered: Consider the data in the table below,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

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Calculate the amount for each of the following (one unit=one test) if the number of tests is 2000 per month. Also calculate if the number of tests decreases to 1,250 per month. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
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The following standards have been set for each test performed: Standard Price or Rate Standard Hours Direct materials. Direct labor.. or Quantity 3 pounds 0.4 hours S0.75 per pound S12 per hour During March, Your Company performed 2,000 tests. • 7,200 pounds of sand were used for core tests at a cost of $6,120. What is Standard Quantity? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DESCRIPTIONS.
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The Iowa City Veterinary Laboratory performs a variety of diagnostic tests on commercial and domestic animals. The lab has incurred the following costs over the past year. Required:1. Plot the data above in a scatter diagram. Assign cost to the vertical axis and the number of diagnostic tests to the horizontal axis. Visually fit a line to the plotted data.2. Using the visually fit line, estimate the monthly fixed cost and the variable cost per diagnostic test.
The following standards have been set for each test performed: Standard Hours Standard Price or Quantity 3 pounds 0.4 hours or Rate S0.75 per pound S12 per hour Direct materials. Direct labor. During March, Your Company performed 2,000 tests. • 840 actual direct labor-hours were worked at a cost of $8,610. What are the standard hours (SQ) for the period? ENTER YOUR ANSWER WITHOUT DOLLAR SIGNS OR OTHER DESCRIPTIONS
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?
Nabors Company had actual quality costs for the year ended June 30, 20x5, as given below. At the zero-defect state, Nabors expects to spend 375,000 on quality engineering, 75,000 on vendor certification, and 50,000 on packaging inspection. Assume sales to be 25,000,000. Required: 1. Prepare a long-range performance report for 20x5. What does this report tell the management of Nabors? 2. Explain why quality costs still are present for the zero-defect state. 3. What if Nabors achieves the zero-defect state reflected in the report? What are some of the implications of this achievement?
Craig, Inc., has provided the following information for one of its products for each hour of production: Actual velocity: 100 units (per hour) Move time: 20 minutes Inspection time: 18 minutes Rework time: 12 minutes Required: Calculate MCE. Comment on its significance.
Subject: Acounting
Cost Assignment and JIT Bunker Company produces two types of glucose monitors (basic and advanced). Both pass through two producing departments: Fabrication and Assembly. Bunker also has an Inspection Department that is responsible for testing monitors to ensure that they perform within prespecified tolerance ranges (a sampling procedure is used). Budgeted data for the three departments are as follows: Inspection Fabrication Assembly Overhead $320,000 $480,000 $136,000 Number of tests — 20,000 60,000 Direct labor hours — 48,000 24,000 In the Fabrication Department, the basic model requires 1.1 hour(s) of direct labor and the advanced model requires 2.2 hour(s). In the Assembly Department, the basic model requires 1.3 hour(s) of direct labor and the advanced model requires 2.45 hours. There are 30,000 basic units produced and 16,000 advanced units. Immediately after preparing the budgeted data, a consultant suggests that two manufacturing cells be created:…

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