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- Rocky Mountain Corporation makes two types of hiking boots-Xactive and Pathbreaker. Data concerning these two product lines appear below: Direct materials per unit Direct labor cost per unit Direct labor-hours per unit Estimated annual production and sales Estimated total manufacturing overhead Estimated total direct labor-hours Activity Cost Pools and (Activity Measures) Supporting direct labor (direct labor-hours) Batch setups (setups) Product sustaining (number of products) General factory (machine-hours) Total manufacturing overhead cost The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Req 1A Required: 1-a. Compute the predetermined overhead rate based on direct labor-hours. 1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product. 2. The…Edlie Accessories (EA) makes travel bags, both for sale under their own label ("Branded") and for other resellers to put their label on the bags ("Private-Label"). The bags sold through the two channels are similar, but they differ slightly in the quality of materials and detail in the manufacturing process. The manufacturing plant at EA has two departments. Department A-101 was the original manufacturing facility and many of the machines are original. Department A-102 is new, with state-of-the-art equipment. The new equipment facilitates the additional care taken with the Branded product. The following information presents financial results for the two models from last year: Sales revenue Direct material Direct labor Manufacturing overhead Department A-101 Department A-102 Total overhead Private Label Branded Total $1,328,000 170,400 110,400 $ 784,000 $544,000 232,000 160,000 402,400 270,400 $ 217,600 269,120 $ 486,720 The product costing system at EA allocates manufacturing overhead…Book Hint Print O ferences Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Pay-per-click/Search engine optimization…
- In Al-Waha Water Bottling Company, the 12-unit cardboard boxes used in the production line would be classified as a: O a. none of the given answers. O b. Unit level activity. O C. Batch level activity. O d. Organization- sustaining level activity. O e. Product- sustaining level activity. CLEAR MY CHOICESunland Center is an experienced home appliance dealer. Sunland Center also offers a number of services for the home appliances that it sells. Assume that Sunland Center sells ovens on a standalone basis. Sunland Center also sells installation services and maintenance services for ovens. However, Sunland Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows. Oven only Oven with installation service Oven with maintenance services Oven with installation and maintenance services Oven In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $190. Additionally, the incremental amount charged by Sunland Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event…11. There are two logistics network systems. Company JYZ is currently applying system 1 for the distribution and warehousing of its raw materials. In system 1, the raw materials are shipped from suppliers to the warehouse, where sorting is implemented. The materials are then shipped from the warehouse to the customers. JYZ is now thinking of implementing system 2, where raw materials are shipped from suppliers directly to the customers. The costs of both systems are provided below (per quarter). The cost formula is y=a+x(b₁ + b₂ + b3), where b₁,b2b3 are the unit cost for handling, logistics, and sorting. System 1 System 2 Fixed cost $2000 Variable cost Variable cost Variable cost (handling per unit) (logistics per unit) (Sorting per unit) $0.02 $0.01 $0.03 $0.01 $0.01 $0.05 y = a + b(x1+x2+x3) a. What is the breakeven point for the two systems to have identical total cost? b. The total number of units of JYZ is 90,000. Given the total unit 90,000, do you think it will be worth it if…
- please answer without image,Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues Variable costs Fixed costs allocated to products Operating profit (loss) 36 Inch $ 372,200 231,600 147,230 $ (6,630) If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required A Required B Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch…Oakland Precision Products (OPP) manufactures and sells a variety of scales for the kitchen and office. OPP sells primarily to kitchenware stores, discount stores, and so on. Two of the scales it produces for kitchen use are the Cook and Baker. The Cook is a basic food scale. The Baker has a greater capacity and special features that facilitate adjusting baking recipes for more or fewer people. The following information is available: Costs per unit Direct materials. Direct labor Variable overhead Fixed overhead Total cost per unit Price Units produced and sold The average wage rate is $32 per hour. Variable overhead varies with the quantity of direct labor-hours. The plant has a capacity of 20,000 direct labor-hours, but current production uses only 17,750 direct labor-hours. Required: a. A nationwide kitchenware chain has offered to buy 30,000 Cook models and 15,000 Baker models if the price is lowered to $10.60 and $36.80, respectively, per unit. a-1. If OPP accepts the offer, how…
- Part A KM Sdn. Bhd. (KM) produces two different types of high quality handbags, Luxury and Superior. Each design is made in small batches. The bags are all made on the same special equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each batches of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. KM uses activity-based costing and provides the following budgeted information for the year ended 31 December 2017: Luxury (RM) Total (RM) Superior (RM) 412,920 120,000 Direct material Direct labour Manufacturing overhead: Set up Shipping Design Plant utilities and administration Total 379,290 98,000 792,210 218,000 65,930 73,910 166,000 243,000 1,559,050 Other information follows: Luxury 6,050 1,450 130 Superior 3,350 2,600 60 Total Number of bags Hours of production Number of batches Number of designs 9,400…The costs listed below are related to a manufacturer of all-natural ice cream. Indicate whether the costs are direct materials (DM), direct labor (DL) or overhead (OH). maintenance on factory building mixing department wages factory maintenance laborRenner Coffee Beans Inc. produces two coffee bean products: "Specialty" and "House." The "House" product is sold to a few major vendors in bulk. The "Specialty product is sold direct to individual consumers. The "Specialty" product includes a designer box in which the beans are hand packed into a red velvet drawstring bag, A leaflet with dessert recipes is also included. The "House" product simply packages the beans into a basic coffee bag. Renner lec, currently uses a plant-wide rate to allocate overhead costs based on direct labor hours, Overhead is estimated to be $460,000 for the year, while direct labor hours are estimated to be 80,000, The Specialty" product requires $5 in direct materials per unit and I direct labor hour. A total of 20,000 units of the "Specialty" product were manufactured during the year. The "House" product requires $1.50 in direct materials per unit and .5 direct labor hours. 120,000 units of the "House" product were produced during the year. The direct labor…