Consider the information below for a company whose products goes through two processes; material cost of GHC100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows that A. There is an abnormal gain of 100kg B. A normal loss of 600kg is incurred O C. There is an abnormal loss of GHC2632 OD. Cannot determine without further details

Consider the information below for a company whose products goes through two processes; material cost of GHC100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows that A. There is an abnormal gain of 100kg B. A normal loss of 600kg is incurred O C. There is an abnormal loss of GHC2632 OD. Cannot determine without further details

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 9E: Stahman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Stahlman...

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Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. The actual output of 9400kg shows thatA. A normal loss of 600kg is incurredB. There is an abnormal gain of 100kgC. There is an abnormal loss of GH¢2632D. Cannot determine without further details
Consider the information below for a company whose products goes through two processes; material cost of GH¢100000 for a quantity of 10000kg, labour cost- GH¢50000 and overhead cost as twice the cost of labour. The company expected an output of 9500kg from process 1 but eventually obtained 9400kg. What value should the output be transferred to process 2?
A company makes one product which passes through only one process. The details of the process account are as follows; material cost- 20000kg @ GH¢1.3/kg, labour cost- GH¢12000, and production overheads- GH¢5700. The actual output from the process is 18800kg with expected normal loss of 5% of input. The value of abnormal loss isA. GH¢460B. GH¢441C. GH¢456D. GH¢437
A company has developed a production cost equation for its lone product: Y = 30 + 5X, where X is based on the number of labor hours. Assuming a relevant range of 10 to 20 labor hours, what is the estimated production cost at zero (0) labor hour? a. P 30 b. P 80 c. P130 d. The exact amount cannot be determined without additional information
Floryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unitMaterials = P3 per unitSupervision = P5,000Power = 300 + P0.25 per unit + P0.50 per machine hourFactory supplies = P250 + P0.75 per unitDepreciation—equipment = P1 per machine hourDepreciation—building = P10,000During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours.Required: Prepare a schedule of the production costs to be incurred during the next period.
The following graph shows the total costs of producing with machinery A and with machinery B, bothhave a different fixed cost and variable cost per part Indicate the fixed and variable costs of eachoption and in what interval of production innumber of parts is suitable for a machine andother. explain
Which of the following statements is true? If the manufacturing cycle efficiency (MCE) is equal to 0.6, then 60% of the time a unit is in process is spent on activities that add value to the product. A manufacturing cycle efficiency (MCE) ratio of less than 1.00 is desirable because this is the ratio of non-value-added time to throughput time.
Based on analyzing the production cost (Y) to units produced (X), the following relationship was found: Y=$5,000+$20X. The $20 in the equation represents: Select one: Oa. Variable production costs per unit Ob. None of the answers given Oc Total variable production costs. O d. Total fixed production costs Oe. Fixed production costs per unit. Next page age
XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr). and the third is based on quantity produced (Q). The results were: [Y-$150,000 + $10×DLH; R-square 0.95]: [Y= $190,000 $5xMhr. R-square = 0.11] [Y=200,000+20 R-square=0.52] Based on this information, %3D which cost driver do you recommend? Select one: O a. All cost drivers are the same Ob. None of them Oc Machine hours (Mhr) O d. Direct labor hours (DLH) Oe. Quantity produced (Q)
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The quantity, Q, of a product manufactured by a company is given by Q = ak0.6L0.4, where a is a positive constant, K is the quantity of capital and L is the quantity of labor used. Capital costs are $32 per unit, labor costs are $8 per unit, and the company wants costs for capital and labor combined to be no higher than $240. Suppose you are asked to consult for the company, and learn that 6 units each of capital and labor are being used. (a) What do you advise? Should the company use more or less labor? More or less capital? If so, by how much? Enter the exact answers. The company should increase ✓labor by 6 unit(s). (b) Complete the sentence below to sell your advice to the board of directors. Round your answer to two decimal places. Reducing i unit(s) and reduce 176.63 capital by 1.5 the quantity of capital and increasing the quantity of labor will increase production by % while holding costs to $240.