In addition to the unit indirect manufacturing costs, the following data are expectedfor the company's standard and deluxe models for 2025:Eason Company manufactures wheel rims. The company produces two wheel rimmodels: standard and deluxe. For 2025, Eason's managers have decided to usethe same indirect manufacturing costs per wheel rim that they computed in 2024using activity-based costing.E (Click the icon to view the expected information.)Because of limited machine hour capacity, Eason can produce either 2,000standard rims or 2,000 deluxe rims.(Click the icon to view the 2024 indirect manufacturing costs per wheel rim.)Read the requirements.Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (lgnoreselling and administrative expenses for this calculation.)ТextUsehodel.Data TableData TableDeluxSalStandardDeluxeIndirect Manufacturing Cost Per UnitDireSales price$800.00 $940.00StandardDeluxeDireDirect materials31.0048.00АВС сosts$224.40 $719.40IndiDirect labor45.0052.00$429.00 $Single-rate costs514.80GroPrintDonePrintDone

Calculation of gross profit: Standard Deluxe Sales Price $800 $940 Direct Materials ($31)…

Eason Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2025, Eason's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. E (Click the icon to view the 2024 indirect manufacturing costs per wheel rim.) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025: E (Click the icon to view the expected information.) Because of limited machine hour capacity, Eason can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Text Use hodel. Data Table Data Table þelux Sal Standard Deluxe Indirect Manufacturing Cost Per Unit Dire Sales price $ 800.00 $ 940.00 Standard Deluxe Dire Direct materials 31.00 48.00 ABC costs 2$ 224.40 $ 719.40 Indi Direct labor 45.00 52.00 Single-rate costs 2$ 429.00 $ 514.80 Gro Print Done Print Done

Eason Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2025, Eason's managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2024 using activity-based costing. E (Click the icon to view the 2024 indirect manufacturing costs per wheel rim.) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2025: E (Click the icon to view the expected information.) Because of limited machine hour capacity, Eason can produce either 2,000 standard rims or 2,000 deluxe rims. Read the requirements. Requirement 1. If Eason's managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) Text Use hodel. Data Table Data Table þelux Sal Standard Deluxe Indirect Manufacturing Cost Per Unit Dire Sales price $ 800.00 $ 940.00 Standard Deluxe Dire Direct materials 31.00 48.00 ABC costs 2$ 224.40 $ 719.40 Indi Direct labor 45.00 52.00 Single-rate costs 2$ 429.00 $ 514.80 Gro Print Done Print Done

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018:
Make versus buy, activity-based costing. The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2017 and the expected costs in 2018:
a)Calculate the operating income for 2022 using absorption costing b)Calculate the operating income for 2022 using variable costing c) If the manager of the Z-Phone division had to choose between absorption and variable costing, which would they choose? Briefly explain.
Variable costing and absorption costing, the Z-Var Corporation. (R. Marple, adapted) It is the end of 2017. Z-Var Corporation began operations in January 2016. The company is so named because it has no variable costs (Zero VARiable). All its costs are xed; they do not vary with output. Z-Var Corp. is located on the bank of a river and has its own hydroelectric plant to supply power, light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a small staff of employees, all paid xed annualsalaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The following budgeted and actual data are for the operations of Z-Var. The company uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold.
Pharoah Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Direct materials Direct labor Variable overhead Fixed manufacturing costs (a) Pharoah' market research department has recommended an introductory unit sales price of $28.00. The selling expenses are estimated to be $432,000 annually plus $2.00 for each unit sold, regardless of manufacturing method. Capital-Intensive $4.00 per unit $5.00 per unit $3.00 per unit $2,284,000 Calculate the estimated break-even point in annual unit sales of the new product if Pharoah Company uses the: 1. Capital-intensive manufacturing method. Labor-intensive manufacturing method. 2. Labor-Intensive $4.50 per unit $7.00 per unit $4.00 per unit $1,437,000 Break-even point in units Capital-Intensive Labor-Intensive
Variable costing and absorption costing, the Z-Var Corporation. (R. Marple, adapted) It is the end of 2017. Z-Var Corporation began operations in January 2016. The company is so named because it has no variable costs (Zero VARiable). All its costs are fixed; they do not vary with output. Z-Var Corp. is located on the bank of a river and has its own hydroelectric plant to supply power, light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a small staff of employees, all paid fixed annual salaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The following budgeted and actual data are for the operations of Z-Var. The company uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold.
Variable costing and absorption costing, the Z-Var Corporation. (R. Marple, adapted) It is the end of 2017. Z-Var Corporation began operations in January 2016. The company is so named because it has no variable costs (Z ero VAR iable). All its costs are fixed; they do not vary with output. Z-Var Corp. is located on the bank of a river and has its own hydroelectric plant to supply power, light, and heat. The company manufactures a synthetic fertilizer from air and river water and sells its product at a price that is not expected to change. It has a small staff of employees, all paid fixed annual salaries. The output of the plant can be increased or decreased by pressing a few buttons on a keyboard. The following budgeted and actual data are for the operations of Z-Var. The company uses budgeted production as the denominator level and writes off any production-volume variance to cost of goods sold.
What is the breakeven point under (a) variable costing and (b) absorption costing?
Complete ALL requirements <>
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
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