finabenefitsActivity CostPoolsni hPA6. LO 6.3 Box Springs, Inc., makes two sizes of box springs: twin and double. The directmaterial for the twin is $25 per unit and $40 is used in direct labor, while the direct material forthe double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will makecost driver activities as follows:5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool andFramingPaddingFillingLabelingInspectionEstimatedOverheadDriverSquare feet of pineSquare feet of quiltingSquare feet of fillingNumber of boxesNumber of inspectionsHow much does each unit cost to manufacture?210,000220,000320,000240,000170,000Use perTwin5,000120,000500,000800,00012,000Use perDoubleA2,000100,000300,000400,0005,000

Lets understand the basics. For calculating cost per unit, we will need to use below formula. Cost…

Answered: hone Activity Cost Pools tits 3 PA6. LO…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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One of Concord Company's activity cost pools is machine setups with estimated overhead of $220000. Concord produces sparklers (320 setups) and lighters (680 setups). How much of the machine setup cost pool should be assigned to sparklers? $220000 $70400 O $110000 O $149600
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Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,200 and the total manufacturing overhead cost is $1,230, which includes $800 fixed manufacturing overhead cost. The ny^ prime s total selling and administrative expenses are $2,650, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) a 66 b43 None of the given answers d. 33 e 59
Boarders estimates overhead will utilize 160,000 machine hours and cost P80,000. It takes 4 machine hours per unit, direct material cost of P5 per unit, and direct labor of P5 per unit. What is the cost of each unit produced?
Edge Company produces two models of its product with the same machine. The machine has a capacity of 154 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Contribution margin per unit 노래 Contribution margin per machine hour Standard Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $ 140 55 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $85 1 hour 500 units Deluxe $ 170 102 $ 68 2 hours 200 units Standard 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe…
Lean Mfg: Vintage Audio Inc
Calculate the original overhead absorption rate Southpeak plc manufactures two products, Alflon and Bur, in one of its factories. Product Alflon is a high-volume item, sales of which are 15,000 units each year, while Product Bur is a low-volume item, sales of which are only 8,000 units a year. Alflon products require two direct labour hours, and the Bur products require four direct labour hours per unit, which are currently used as the basis for assigning overhead cost to the products. The company’s overhead costs total $1,070,450 each year. Unit selling prices, costs for materials and labour in the factory of the two products are as follows: Product Alflon ($) Product Bur ($) Selling Price 89 115 Direct Labour (at $10 per hour) 20 40 Direct Materials 15 15
Sheridan, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total 7 9 $27 Saran Company has contacted Sheridan with an offer to sell it 5400 wickets for $21 each. Of Sheridan's $9 per unit fixed cost, $5 per unit is unavoidable. Should Sheridan make or buy the wickets and why? O Make because the cost savings is $16200 O Make because the cost savings is $5400 O Buy because the cost savings is $10800 O Buy because the cost savings is $5400
Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $13 each. Zion uses 4,400 units of Component K2 each year. The cost per unit of this component is as follows: Direct materials Direct labor Variable overhead Fixed overhead Total $7.84 2.84 1.67 4.00 $16.35 The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 1. What are the alternatives facing Zion Manufacturing with respect to production of Component K2? 2. List the relevant costs for each alternative. If required, round your answers to the nearest cent. Total Relevant Cost Make per unit Buy per unit Differential Cost to Make per unit
Seved Olihe Corp curenty makes 9.300 subcomponents a year in one of its factorles. The unit costs to produce are: Per unit $34 25 Direct materials 29 Direct labor 24 Fariable manufacturing overhead Fired manufactaring overhead 12 $99 Total unit cost An atside suppler has offered to provide Olive Corp. with the 9,300 subcomponents at a $97 per unit price. Fixed overhead is not avoidable. What is the mexinum price Olive Carp. should pay the outside supplier? Mtcle Ohoice $87 $97 $99
Please answer it properly
Gelb Company currently makes a key part for its main product. Making this part incurs per unit variable costs of $1.40 for direct materials and $0.95 for direct labor. Incremental overhead to make this part is $1.48 per unit. The company can buy the part for $4.02 per unit. (a) Prepare a make or buy analysis of costs for this part. Note: Enter your answers rounded to 2 decimal places. (b) Should Gelb make or buy the part? (a) Make or Buy Analysis Direct materials Direct labor Overhead Cost to buy Cost per unit Cost difference (b) Company should: Make Buy

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