need correct answer of this general accounting Elite Sports Equipment has established the following standards for theprime costs of one unit of its premium basketball:Standard Quantity Standard Price/Rate Standard CostComponentDirect material 4.50 poundsDirect labor 1.25 hoursTotal$3.40 per pound$15.30$8.50 per hour$10.63$25.93During September, Elite purchased 128,000 pounds of direct material at atotal cost of $448,000. The total wages for September were $320,000,85% of which were for direct labor. Elite manufactured 28,000basketballs during September, using 122,000 pounds of the direct materialpurchased in September and 34,500 direct-labor hours.Compute the direct material price variance for September.

Step 1: Define Direct Material Price VarianceThe Direct Material Price Variance (DMPV) measures the…

Answered: Elite Sports Equipment has established…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 14E

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TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for$1,600. The production cost computed per unit under traditional costing for each model in2019 was as follows:Traditional Costing TRIXDirect Materials $700Direct Labour ($20/hour) $120Manufacturing overhead ($38 per DLH) $228Total per unit cost $1, 048In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRIX as it has continuously failed to reach the gross profit target of $600. Before finalizing its decision, management asks TikTok Electronics management accountant to prepare an analysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019.Required:1. Calculate the activity rates for each of the overhead items using the four cost drivers. 2. Using the rates in (1) determine…
TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for$1,600. The production cost computed per unit under traditional costing for each model in2019 was as follows:Traditional Costing TRIXDirect Materials $700Direct Labour ($20/hour) $120Manufacturing overhead ($38 per DLH) $228Total per unit cost $1, 048In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, thegross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRIX as it has continuously failed to reach the gross profit target of $600. Before finalizing itsdecision, management asks TikTok Electronics management accountant to prepare an 3analysis using activity-based costing (ABC). The management accountant accumulates thefollowing information about overhead for the year ended December 31, 2019.Activity CostPoolsCost Drivers EstimatedOverheadExpected Use ofCost DriversPurchasing Number oforders$1,200,000 40,000Machine setups Number…
Han Products manufactures 21,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials$ 3.50Direct labor9.00Variable manufacturing overhead2.50Fixed manufacturing overhead9.00Total cost per part$ 24.00 An outside supplier has offered to sell 21,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $71,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
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TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for$1,600. The production cost computed per unit under traditional costing for each model in2019 was as follows: Traditional Costing TRIXDirect Materials $700Direct Labour ($20/hour) $120Manufacturing overhead ($38 per DLH) $228Total per unit cost $1, 048 In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRIX as it has continuously failed to reach the gross profit target of $600. Before finalizing itsdecision, management asks TikTok Electronics management accountant to prepare an analysis using activity-based costing (ABC). The management accountant accumulates thefollowing information about overhead for the year ended December 31, 2019. Follow the image. Required:1. Calculate the activity rates for each of the overhead items using the four cost drivers. 2. Using the…
For February the cost components of a picture frame include $0.39 for the glass, $0.60 for the wooden frame, and $0.83 for assembly. The assembly desk and tools cost $650. Two hundred fifty frames are expected to be produced in the coming ver What cost function best represents these costs? OA y-0.99 650X OB ya 650+ 1.82X Oc ye182 +650X OD y 650 + 0.99X O Time Remaining: 01:58:02 Next ) 7. 8 R. 5 %23
Alpha Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials £ 3.60Direct labour 10.00Variable overhead 2.40Fixed overhead 9.00Total cost per part £ 25.00 An outside supplier has offered to sell 30,000 units of part S–6 each year to AlphaProducts for £21 per part. If Alpha Products accepts this offer, the facilities now being used to manufacture part S–6 could be rented to another company at an annual rental of £80,000. However, Alpha Products has determined that two-thirds of the fixed overhead being applied to part S-6 would continue even if part S–6 were purchased from the outside supplier Required: (a) Prepare computations to show the net advantage or disadvantage of accepting the outside supplier’s offer. (b) Define the following terms: relevant cost and opportunity cost. (c) ‘If a product line is generating a loss, then that’s pretty good evidence that the…
Han Products manufactures 50,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is asfollows:Direct materials $ 5.50Direct labour 11.50Variable overhead 4.50Fixed overhead 10.20Total cost per part $31.70An outside supplier has offered to sell 43,500 units of part S-6 each year to Han Products for $28.00 per part. If Han Products accepts this offer, thefacilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $100,000. However, Han Products hasdetermined that 30% of the fixed overhead being applied to part S-6 will be avoided if part S-6 is purchased from the outside supplier. Required:1. What is the net dollar advantage or disadvantage of accepting the outside supplier’s offer? (Round "Total costs" and final answer to the nearestwhole dollar amount.)
TikTok Electronics manufactures an aluminium fibre tripod model “TRI-X” which sells for $1,600. The production cost computed per unit under traditional costing for each model in 2019 was as follows:Traditional CostingDirect MaterialsDirect Labour ($20/hour) Manufacturing overhead ($38 per DLH) Total per unit costTRIX$700 $120 $228 $1, 048In 2019, TikTok Electronics manufactured 26,000 units of TRI-X. Under traditional costing, the gross profit on TRI-X was $552 ($1,600-$1,048). Management is considering phasing out TRI- X as it has continuously failed to reach the gross profit target of $600. Before finalizing its decision, management asks TikTok Electronics management accountant to prepare an analysis using activity-based costing (ABC). The management accountant accumulates the following information about overhead for the year ended December 31, 2019.Activity Cost Pools PurchasingMachine setupsMachining Quality ControlCost DriversNumber of orders Number of setups Machine hours Number…
Whispering Winds Company has developed the following standard costs for its product for 2022: WHISPERING WINDSCOMPANY Standard Cost Card Product A Cost Component Standard Quantity Standard Price Standard Cost Direct materials 4 pounds $3 $12 Direct labor 3 hours 8. 24 Manufacturing overhead 3 hours 4 12 $48 The company expected to produce 31,700 units of Product A in 2022 using 95,900 direct labor hours. Actual results for 2022 are as follows: 33,000 units of Product A were produced. Actual direct labor costs were $794,580 for 96,900 direct labor hours worked. Actual direct materials purchased and used during the year cost $369,875 for 134,500 pounds. Actual variable overhead incurred was $165,000 and actual fixed overhead incurred was $220,000. Compute the following variances showing all computations to support your answers. Indicate whether the variances are unfavorable. Compute the following variances showing all computations to support your answers. Indicate whether the variances…
Edge Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labor dollars. For 2009, Edge Manufacturing compiled the following data for the two products: Deluxe Standard Sales units $50,000 $400,000 Sales price per unit $650.00 $475.00 Direct material and labor costs per $180.00 $130.00 unit Manufacturing support costs per unit $ 80.00 $120.00 Last year, Edge Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 20X5: Cost Driver Activity Setups Machine- # of machine Cost Total Deluxe Standard # of setups $ 500,000 $44,000,000 | 600,000 300,000 |300,000 500 400 100 related hours Packing # of shipments $ 5,000,000 | 250,000 |50,000 200,000 N.B.: # = number Required:…
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