Determine which machine minimizes the total cost per piece if each part is made from Php 4 worth of material. The variable overhead cost is charges at Php 40 per hour and the given machines are fully automated.
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Determine which machine minimizes the total cost per piece if
each part is made from Php 4 worth of material. The variable
| MACHINE A | MACHINE B | |
| Production rate | 35 parts/hour | 15 parts/hour |
| Production time | 4 hours/day | 7 hours/day |
| Percent of parts rejected | 20% | 9% |
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- Company FB1 produces skateboards. In April the company produced 520 skateboards. The normal production volume is 500 skateboards.In April the company had the following costs: Rawmaterial 2 600 € Salaries (variable) 8 000 € Fixed costs 4 000 € Administration and accounting (fixed) 2 500 € What is the unit cost for a skateboard using normal costing method? €LaVerle, Inc., manufactures a product that sells for $480. The variable costs per unit are as follows: Direct materials $160 Direct labor 100 Variable manufacturing overhead 40 During the year, the budgeted fixed manufacturing overhead is estimated to be $100,000, and budgeted fixed selling and administrative costs are expected to be $40,000. Variable selling costs are $20 per unit. Required: a. Determine the break-even point in units. b. Determine the number of units that must be sold to earn $60,000 in profit before taxes. c. Determine the number of units that must be sold to generate an after-tax profit of $60,000 if there is a 40 percent tax ratefast please
- A unit of cake uses various direct materials, direct labor and indirect manufacturing costs. Indirect costs use a rate of direct labor hours. Data:each cake consumes 10 ounces of materials at a negotiated cost of 0.05.each employee takes 0.10 of an hour to produce a cake.employee rate= $10.00 (for each quarter)variable costs= $16,000fixed costs = $116,000labor hours for four quarters of the year = 8,197 Calculate the estimated total cost of manufacturing one unit of cake. Prepare a cost per unit budgetMercury Bowie Sdn Bhd manufactures two products, the Y and the Z, which have the following standard selling price and standard costs per unit. Y Z RM RM Standard Selling Price 110 118 Direct Materials (RM4 per kg) 32 16 Direct Labour (RM10 per direct labour hour) 60 80 Variables Overhead (RM1 per machine hour) 4 6 During the next accounting period, the availability of resources are expected to be subjects to the following limitations: Direct Materials 3440 kg Direct Labour Hours 2880 hours Machine capacity 2760 hours The marketing department estimated that the maximum sales potential for product Y is limited to 420 units. There is no sales limitation for product Z. You are asked to advise how these limited facilities and resources can best be used so as to gain the optimum benefit from them. Required: 1.Determine by graphical means the optimal mix of Y and Z at Mercury Bowie Bhd Sdn…Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 47.00 $ 57.00 $ 87.00 Variable costs per unit 22.70 12.00 38.70 Fixed costs per unit 9.00 9.00 9.00 Required number of labor hours 1.50 2.50 3.00 Cordova currently is limited to 58,500 labor hours per month. Cordova’s marketing department has determined the following demand for its products: Product A 14,000 units Product B 9,000 units Product C 10,000 units Required:Given the company’s limited resource and expected demand, compute how many units of each product Cordova should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first. Round your answers to the nearest whole number.) Product Units Produced
- Make-or-Buy Decision Companion Technologies Company has been purchasing carrying cases for its portable tablets at a delivered cost of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials Direct labor $24.00 21.00 Factory overhead (42% of direct labor). Total cost per unit 8.82 $53.82 < If Companion Technologies Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 12% of the direct labor costs. a. Prepare a differential analysis report for the make-or-buy decision. Enter your final answer as a positive amount if it represents a net cost savings; enter a negative amount if it represents an increase in cost. COMPANION TECHNOLOGIES COMPANY Manufacture Carrying…Additional Information: Şales revenue per unit will be decreased by BD 1.200 fils for sales more than 9,000 units. a. b. Direct material cost is a variables cost and other production overheads are fixed cost. C. Direct labour consists of machine operatives' wages and the total wages behave as a step cost: Output Up to 7,500 units Over 7,501 and up to 11,000 units Over 11,001 and up to 15,000 units Machine running costs are a semi-variable cost. There is a fixed charge of BD 5,000 plus BD 1.200 fils per unit. Total Direct Labour cost BD 4,850 BD 8,563 BD 10,484 d. Required: the budgeted other production overhead under the output of 11300 units is:Choose the best
- Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: $0.27 0.51 0.69 0.18 Compute the number of pans that must be sold for Werner to break even. pans Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? Unit variable cost ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?Two products were produced for a customer, Product A and Product B. Product A GHS Product B GHS Direct material costs 300,000 350,000 Direct labour costs 400,000 270,000 Direct labour hours: Assembly Department Welding Department Finishing Department Hrs 1,000 1,500 750 Hrs 950 800 1,000 Required: i. Calculate the full cost for each product. ii. What will be the selling price each to make a profit of 40% on cost?Seved Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are: Per unit $34 25 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fired manufactaring overhead 12 $99 Total unit cost An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is the mexinum price Olive Carp. should pay the outside supplier? Mtcle Ohoice $87 $97 $99
