Hello tutor please given correct answer general Accounting Perl Corp. applies to manufacturing overhead costs to products at a budgetedindirect-cost rate of $55 per direct manufacturing labor hour. A retail outlet hasrequested a bid on a special order of a necklace. Estimates for this order include:Direct materials of $46,000; 400 direct manufacturing labor- hours at $15 perhour; and a 50% markup rate on total manufacturing costs.The bid price for this special order is:a. $78,000.b. $62,000.c. $111,000.d. $102,000.

Step 1: Define Mark UpMark up is adding a percentage of profit margin on the total cost of…

Answered: Perl Corp. applies to manufacturing…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...

See similar textbooks

Similar questions

Parker Industries applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor hour. A client has requested a bid on a special order for a customized bracelet. Estimates for this order include: Direct materials of $52,000, 450 direct manufacturing labor hours at $18 per hour, and a 40% markup rate on total manufacturing costs. What is the bid price for this special order?
Crandle Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $55 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: ef $37.000; 600 direct manufacturing labor - hours at $30 per hour, and a 30% markup rate on total manufacturing costs. Estimated total product costs for this special order equal OA S70,000 OB $114,400 OC S88,000 OD. S55.000 O Time Remaining: 02:10:08 Next 24 7. 8. 6 2
JJoni's Kitty Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of 60 dollars per direct manufacturing labor hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials worth 40,000 dollars, 500 direct manufacturing labor hours at $20 per hour 20% markup rate on total manufacturing costs. The bid price for this special order is:
Manchester Company applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor- hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $50,000; 400 direct manufacturing labor-hours at $20 per hour; and a 30% markup rate on total manufacturing costs. Estimated total product costs for this special order equal O $96,000 O $76,000 O 582,000 O $80,000 Proviour
15) Corp applies O/H to products at a budgeted indirect-cost rate of $60 per DLH. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: DM of $50,000; 400 DLH at $20 per hour; and a 30% markup rate on total manufacturing costs. Estimated total product costs for this order equal
Rundle Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials. Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rundle for $2.60 each. Required a. Calculate the total relevant cost. Should Rundle continue to make the containers? b. Rundle could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Rundle continue to make the containers? Answer is complete but not entirely correct. $ a. Total relevant cost a. Should Rundle continue to make the containers? b. Total avoidable cost b. Should Rundle continue to make the containers? 190.650,000 Yes $24,180,000 $ 5,200 6,100 4,000 7,800…
A company currently pays $5 per unit to buy a key part for a product it manufactures. It can make the part for $1.50 per unit for direct materials and $2.50 per unit for direct labor. The company normally allocates overhead costs at the rate of 50% of direct labor. Incremental overhead costs to make this part are $0.75 per unit. Should the company make or buy the part?
Xia Co. currently buys a component part for $9 per unit. Xia believes that making the part would require $6.40 per unit of direct materials and $1.05 per unit of direct labor. Xia allocates overhead using a predetermined overhead rate of 205% of direct labor cost. Xia estimates an incremental overhead rate of $0.55 per unit to make the part. 1-a. What are the relevant costs for Xia to make or buy the part? (Round your answers to 2 decimal places.) Make Buy Per Unit 1-b. Should Xia make or buy the part? O Make O Buy
Alpha currently makes a subassembly for its main product. The costs per unit are as follows: Direct materials $ 45.00 Direct labor 35.00 Variable overhead Fixed overhead 30.00 Total $143.00 33.00 Vendor has contacted Alpha with an offer to sell 5,000 of the subassemblies for $135.00 each. Alpha will eliminate $85,000 of fixed overhead if it accepts the proposal. 25) Which option, make or buy, gives Alpha the higher operating income? By how much?
Beto Company pays $5.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $5.70 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto 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
Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials $ 6,000 6,900 3,600 8,400 26,500 Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Perez for $2.80 each. Required a. Calculate the total relevant cost. Should Perez continue to make the containers? b. Perez could lease the space it currently uses in the manufacturing process. If leasing would produce $12,800 per month, calculate the total avoidable costs. Should Perez continue to make the containers? a. Total relevant cost Should Perez continue to make the containers? b. Total avoidable cost Should Perez continue to make the containers?
The James Company manufactures widgets that sell for $120 each. The company's unit cost for each widget is as follows: A company in another state has offered to purchase 1,000 widgets from James Company at a cost of $90 each. If James were to accept this special order, no additional Fixed Manufacturing Overhead costs would be incurred. Should James accept this special order? Show relevant calculations.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS