Please do not give solution in image format thanku Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 61,000units of RX5 follows.Direct materialsDirect laborOverheadTotal costs per unitDirect materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 61,000 unitsof RX5 for $19.00 per unit.$ 5.009.0010.00$24.00Required:1. Determine the total incremental cost of making 61,000 units of RX5.2. Determine the total incremental cost of buying 61,000 units of RX5.3. Should the company make or buy RX5?Complete this question by entering your answers in the tabs below.Required 1 Required 2Incremental cost of making RX5Required 3Determine the total incremental cost of making 61,000 units of RX5.Total incremental cost of making 61,000 unitsMaking the units< Required 1Required 2 > Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 61,000units of RX5 follows.Direct materialsDirect laborOverheadTotal costs per unitDirect materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 61,000 unitsof RX5 for $19.00 per unit.Required:1. Determine the total incremental cost of making 61,000 units of RX5.2. Determine the total incremental cost of buying 61,000 units of RX5.3. Should the company make or buy RX5?$ 5.009.0010.00$24.00Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Determine the total incremental cost of buying 61,000 units of RX5.Incremental cost of buying RX5Total incremental cost of buying 61,000 unitsDirect materialsDirect laborOverheadTotal costs per unitHaver Company currently produces component RX5 for its sole prodott. The current cost per unit to manufacture the required 61,000units of RX5 follows.$ 5.009.0010.00$24.00Required 1Buying the unitsDirect materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 61,000 unitsof RX5 for $19.00 per unit.< Required 1Required:1. Determine the total incremental cost of making 61,000 units of RX5.2. Determine the total incremental cost of buying 61,000 units of RX5.3. Should the company make or buy RX5?Required 2 Required 3Complete this question by entering your answers in the tabs below.Should the company make or buy RX5?Required 3 >Should the company make or buy RX5?< Required 2Required 3 >

Incremental Cost is the cost incurred for the production of additional units of products . Variable…

Answered: Haver Company currently produces…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
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Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
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Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 70,000 units of RX5 follows. Direct materials Direct labor $5.00 9.00 10.00 Overhead Total costs per unit. $24.00 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 70,000 units of RX5 for $19.00 per unit. Required: 1. Determine the total incremental cost of making 70,000 units of RX5. 2. Determine the total incremental cost of buying 70,000 units of RX5. 3. Should the company make or buy RX5? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the total incremental cost of making 70,000 units of RX5. Incremental cost of making RX5 Making the units Total incremental cost of making 70,000 units Required 2 > Required 1 Required 2 Required 3 Determine the total incremental cost of buying 70,000 units of RX5. Incremental cost of buying RX5…
Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product F9 500 4 2,000 Product U4 1,000 2 2,000 Total direct labor-hours 4,000 The direct labor rate is $25.50 per DLH. The direct materials cost per unit is $274 for Product F9 and $222 for Product U4. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product F9 Product U4 Total Labor-related DLHs $ 31,900 2,000 2,000 4,000 Production orders orders 50,640 600 1,000 1,600 Order size MHs 103,200 3,300 2,600 5,900 $ 185,740 If the company allocates all of its overhead based on direct labor-hours using its…
Haver Company currently produces component RX5 for one of its products. The current cost per unit to manufacture the required 50,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 8.00 Overhead . 9.00 Total cost per unit $22.00 Check (1) Incremental cost to make RX5, $740,000 Direct materials and direct labor are 100% variable. Overhead is 80% fixed. An outside supplier has offered to supply the 50,000 units of RX5 for $18.00 per unit. Required 1. Determine the total incremental cost of making 50,000 units of RX5. 2. Determine the total incremental cost of buying 50,000 units of RX5. 3. Should the company make or buy RX5?

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