COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,443,140 59.000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $145.733 1,910 inspection-hours The company makes 890 units of product YBa year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit The product sells for $148.50 per unit According to the activity-based costing system, the product margin for product YB is: (Round your intermediate calculations and final answers to 2 decimal places.) Select one: a $4.560.38 b $5.450.38 C $7.230 38 d. $6.340.38

COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,443,140 59.000 machine-hours Processing orders $ 80,905 2,750 orders Inspection $145.733 1,910 inspection-hours The company makes 890 units of product YBa year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit The product sells for $148.50 per unit According to the activity-based costing system, the product margin for product YB is: (Round your intermediate calculations and final answers to 2 decimal places.) Select one: a $4.560.38 b $5.450.38 C $7.230 38 d. $6.340.38

Name: COVID 19 Co has provided the following data from its activity-based c
Uploaded: 2024-03-20T06:32:49.000Z
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Description: COVID 19 Co has provided the following data from its activity-based costing system:Activity Cost PoolTotal CostTotal ActivityAssembly$1,443,14059.000 machine-hoursProcessing orders$ 80,9052,750 ordersInspection$145.7331,910 inspection-hoursThe compa

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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Sherman Manufacturing Company currently manufactures a component used in one of its products. The annual production costs for 11,300 components are as follows: Material cost Labor cost Overhead Batch-level set-up costs for year Product-level manager's salary Allocated facility-level costs $ 7 per unit $ 3 per unit $ 1 per unit $ 5,700 $ 17,700 $ 11,700 An outside company has offered to supply 11,300 units of the component for $14.40 each. If the company outsources the component, it will be able to rent out the idle factory space for $2,000 per month but will not terminate the product manager. Required: a. Which items are not relevant to this outsourcing decision? b. Identify any opportunity costs associated with this decision. c. Prepare a quantitative analysis that indicates whether the component should be outsourced. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a quantitative analysis that indicates whether the component…
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