86Finch Cameras, Incorporated manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Finch usesan activity-based costing system. The following are the relevant cost data for the previous month:Direct Cost per UnitDirect materialsDirect laborCategoryUnit levelBatch levelProduct levelFacility levelTotalEstimatedCost$ 24,00047,00087,500270,000$ 428,500Model 2MModel DS$ 10.5013.00$ 20.5029.00Cost DriverNumber of unitsNumber of setupsNumber of TV commercialsNumber of machine hoursAmount of Cost DriverZM: 2,450 units; DS: 9,550 unitsZM: 25 setups; DS: 25 setupsZM: 14; DS: 11ZM: 500 hours; DS: 1,000 hoursFinch's facility has the capacity to operate 4,500 machine hours per month.Requireda. Compute the cost per unit for each product.b. The current market price for products comparable to Model ZM is $129 and for DS is $80. If Finch sold all of its products at themarket prices, what was its profit or loss for the previous month?c. A market expert believes that Finch can sell as many cameras as it can produce by pricing Model ZM at $124 and Model DS at $45.Finch would like to use those estimates as its target prices and have a profit margin of 30 percent of target prices. What is the targetcost for each product?Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Required A Required BRequired CThe current market price for products comparable to Model ZM is $129 and for DS is $80. If Finch sold all of its products atthe market prices, what was its profit or loss for the previous month? (Round intermediate calculations to 2 decimal places.Loss amounts should be indicated by a minus sign.)Model ZMModel DSProfitProfitAmount1129

Activity-based costing:Activity-based costing is a cost allocation method used to allocate the…

Direct Cost per Unit Direct materials Direct labor Category Unit level Batch level Estimated Cost $ 24,000 Product level 47,000 87,500 270,000 Model 2M $ 20.50 29.00 Model DS $ 10.50 13.00 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver ZM: 2,450 units; DS: 9,550 units ZM: 25 setups; DS: 25 setups ZM: 14; DS: 11 ZM: 500 hours; DS: 1,000 hours Facility level Total $ 428,500 ch's facility has the capacity to operate 4,500 machine hours per month.

Direct Cost per Unit Direct materials Direct labor Category Unit level Batch level Estimated Cost $ 24,000 Product level 47,000 87,500 270,000 Model 2M $ 20.50 29.00 Model DS $ 10.50 13.00 Cost Driver Number of units Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver ZM: 2,450 units; DS: 9,550 units ZM: 25 setups; DS: 25 setups ZM: 14; DS: 11 ZM: 500 hours; DS: 1,000 hours Facility level Total $ 428,500 ch's facility has the capacity to operate 4,500 machine hours per month.

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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Production and sales (units) Materials cost ($) Labour cost per unit ($) at $12 per hour Machine hours (per unit) Total no. of production runs Total no. of purchase orders Total no. of deliveries to retail division Market/Retail prices Overhead costs: Machine set-up costs ($) Machine maintenance costs ($) Ordering costs ($) Delivery costs ($) Total ($) Product S Product R 3,200 5,450 117 95 9 1 12 64 80 260 total: 6 2 30 82 64 320 306,435 415,105 11,680 144,400 877,620 Rinse @ $241.69 = full cost +10% oll Retail price Rinse: $260 The company's policy is to transfer the washing machines from the assembly division to the retail division at full cost plus 10% resulting in internal transfer prices, of $220.17 and $241.69 for S and R when transferred to the retail division. The retail division sells S for $320 per machine and R for $260 per machine to the market. (a) Use activity based costing to allocate the overheads and recalculate the transfer prices for S and R. (b) Calculate the…
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5 Vista Company reports the following information. Direct materials Direct labor Variable overhead Fixed overhead Units produced Compute its product cost per unit under absorption costing. Multiple Choice $76.00. $152.00. $171.00. $ 44 per unit 64 per unit $ 44 per unit $ 380,000 per year 20,000 units < Pr
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Subject: Cost AccountingPlease answer the questions given. Thank you!