Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo)
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Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit:
If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo)
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- LoneStar Co. is a manufacturing company that produces only one product, cowboy boots, has provided the following data concerning its operations in 2019 and 2020: 2019 was the company’s first year of operations. In 2019 the company produced 1,000 pairs of cowboy boots and sold 900 pairs. The company sold boots at $250 a pair. The company incurred the following costs in 2019: direct materials of $70 a pair, direct labor costs of $20 a pair, variable selling and administrative of $5 a pair, variable manufacturing overhead of $10 a pair, and fixed manufacturing overhead of $20,000. Lastly, they paid $50,000 for fixed selling and administrative expenses. In 2020, selling price and all costs remained the same except that direct material costs went up by $5 a pair. The company produced 2,000 pairs in 2020 and sold 1,500 pairs. LoneStar Co. uses FIFO inventory method (the oldest units are sold first). A. What is the unit product cost for 2019 and 2020 under variable costing? B. What is the…Lakeside Incorporated produces a product that currently sells for $46.80 per unit. Current production costs per unit include direct materials, $13; direct labor, $15; varlable overhead, $6.50; and fixed overhead, $6.50. Product engineering has determined that a certain part of the product conversion process could be outsourced. Raw material costs would not be affected, but direct labor and variable overhead costs would be reduced by 30%. No other opportunity is currently feasible for unused production capacity. Required: a. What would be the net cost advantage or disadvantage if Lakeview decided to outsource part of the conversion process at a cost of $5.20 per unit? Note: Do not round your Intermediate calculations. Round your final answer to 2 decimal places. b. Should Lakeside outsource part of the conversion process at a cost of $5.20 per unit? a. b. Should Lakeside outsource conversion process at this cost?Snipe Company has been purchasing a component, Part Q, for $19.20 a unit. Snipe is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows: Direct materials $11.50 Direct labor $4.50 Variable factory overhead $1.12 Fixed factory overhead $3.15 Total $20.27 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.
- Edidas Company needs 20,000 units of Part GX to use in producing one of its products. If Edidas buys the Part GX from McMillan Company for $79 instead of making it, Edidas will not use the released facilities in another manufacturing activity. Twenty percent of the fixed overhead will continue irrespective of CEO Donald Mickey's decision. The cost per unit data are as follows: Cost to make the part Direct Materials Direct Labor (S) 30 15 Variable Overhead 20 Fixed Overhead 20 85 Required : 1. Explain which alternative is more attractive to Edidas, make or buy Part GX. 2. Assume there is new information that Edidas is negotiating to purchase cheaper raw materials from supplier (Twenty percent lower price). Is this information relevant or irrelevant? On the basis of financial considerations alone, should Edidas make or buy Part GX? Show your calculations 3. Based on requirement 2, what are relevant qualitative factors that Edidas should consider to decide whether to make or buy Part GX?…During 2022, a Manufacturing Company produced 20,000 computer keyboards, incurring the following unit costs: $10 in Direct Materials; $12 in Direct Labour; $4 in Variable Overhead; $5 in Fixed Overhead; $3 in Variable Administrative Expenses; $2 in Fixed Selling & Administrative Expenses; An outsider had offered to produce keyboards for $24 each; Assuming the factory space would have otherwise been idle, acceptance of the outside offer would have saved or lost the Company funds and how much?Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at 75% of full capacity, and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Z, determined by absorption costing method, is estimated as follows: Direct materials $30 Direct labor 15 Variable factory overhead 26 Fixed factory overhead 10 Total $81 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Z. Grey Inc. Proposal to Manufacture Part Z March 12, 20XX Purchase price of Part Z Differential cost to manufacture Z: Direct materials X Direct labor X Variable factory overhead X Cost savings from manufacturing Part Z
- Hawkins Audio Video, Inc. manufactures digital cameras. Hawkins is considering whether it should outsource production of a part used in the manufacturing of its cameras. 60,000 units of the part were made by Hawkins last year. At this production level, the company incurred the following direct product costs: Direct Materials $250,000 Direct Labor $104,000 Manufacturing Overhead incurred during the same period for production of the part is represented by the following cost behavior equation: y = $0.10x + $50,000. If the part were purchased from an outside supplier, 80% of the total fixed manufacturing overhead cost would continue, and the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional income from this other product would be $12,600 per year. A supplier has been identified who can sell the part to Hawkins at a price of $7.80 per unit. Which of…Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: The question is If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units? (round off to the nearest centavo)A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.20 per unit to manufacture. The units can be a) sold as is for $2.60 each, or b) reworked for $4.80 each and then sold for the full price of $7.80 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Incremental income (loss) The company should: Sale as Scrap $ 0 $ Rework
- Bridgeport sells its product for $82 per unit. During 2025, it produced 120400 units and sold 105100 units. Costs per unit are: direct materials $25, direct labor $9, variable overhead $4, and variable operating expenses $2. Fixed costs are $722400 manufacturing overhead, and $77500 operating expenses. Assuming no variances were reported, no beginning inventory exists, and the company uses absorption costing, what will be reported as operating income? O $3211200. ○ $3706100. O $3421400. O $3601000. iSteel Metals Ltd manufactures and sells iron rods that is used in the construction of roads. The product is manufactured and sold in 20' long rods. The product is generally produced and sold to match customer demand, and there is not a significant amount of finished goods inventory at any point in time. Summary information for 2020 is as follows: Sales were $20,000,000, consisting of 5,000,000 rods. Total variable costs were $11,000,000. Total fixed costs were $8,000,000. Net income was $1,000,000. The general economic conditions appear to be deteriorating heading into 2021, and there is some concern about a reduction in sales volume. The following questions should each be answered independent of one another. Required: a) What is the company's break-even point in 20' long rods? b) Can the company sustain a 30% reduction in total volume, and remain profitable? c) The company's sole shareholder, Pant Sharma, generally lives off dividends paid by the business. The business typically…Boulevard Company expects to sell 500,000 units in 2021 at P100 per unit. Variable manufacturing costs in producing the product amount to P40 per unit and fixed manufacturing costs amount to P25.00 per unit. A special order from Devil Company of 50,000 units were made at an offered price of P57.50 per unit. Regular sales from customers will not be affected from this transaction. However, in order to meet the specifications and requirements of Boulevard Company, overtime pay would be incurred amounting to P7.50 per unit. Determine the effect in income when the special order is accepted. Indicate whether increase or decrease 1. 500,000 increase 2. 750,000 decrease 3. 875,000 increase 4. None of the above Group of answer choices 1 2 3 4