Peter Company makes a high-end Appliance, Y45. Peter presents the following data for theyears 2019 and 2020:Units of Y45 produced and soldSelling priceDirect materials (square feet)Direct materials costs per square footManufacturing capacity in units of Y45Total conversion costs2019100,000$1,000300,000$1002020105,000$1,100307,500$110125,000$12,500,000 $13,750,000$100125,000Conversion costs per unit of capacitySelling and customer-service capacity (customers)Total selling and customer-service costsSelling and customer-service capacity cost per customer $15,000$110300300$4,500,000$4,687,500$15,625Peter produces no defective units but it wants to reduce direct materials usage per unit of Y45.Manufacturing conversion costs in each year depend on production capacity defined in termsof Y45 units that can be produced. Selling and customer-service costs depend on the number ofcustomers that the customer and service functions are designed to support. Peter had 280customers in 2019 and 290 customers in 2020.8. What is the revenue effect of the price recovery component?A. $10,500,000 FB. $5,000,000 UC. $5,000,000 FD. $10,500,000 U

The revenue effect of the price recovery component is ascertained by subtracting the selling price…

Peter Company makes a high-end Appliance, Y45. Peter presents the following data for the years 2019 and 2020: Units of Y45 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of Y45 2019 100,000 $1,000 300,000 $100 2020 105,000 $1,100 307,500 $110 125,000 $12,500,000 $13,750,000 125,000 Total conversion costs Conversion costs per unit of capacity Selling and customer-service capacity (customers) Total selling and customer-service costs Selling and customer-service capacity cost per customer $100 $110 300 $4,500,000 $4687,500 $15,000 300 $15,625 Peter produces no defective units but it wants to reduce direct materials usage per unit of Y45. Manufacturing conversion costs in each year depend on production capacity defined in terms of Y45 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Peter had 280 customers in 2019 and 290 customers in 2020. 8. What is the revenue effect of the price recovery component? A. $10,500,000 F B. $5,000,000 U C. $5,000,000 F D. $10,500,000 U

Peter Company makes a high-end Appliance, Y45. Peter presents the following data for the years 2019 and 2020: Units of Y45 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of Y45 2019 100,000 $1,000 300,000 $100 2020 105,000 $1,100 307,500 $110 125,000 $12,500,000 $13,750,000 125,000 Total conversion costs Conversion costs per unit of capacity Selling and customer-service capacity (customers) Total selling and customer-service costs Selling and customer-service capacity cost per customer $100 $110 300 $4,500,000 $4687,500 $15,000 300 $15,625 Peter produces no defective units but it wants to reduce direct materials usage per unit of Y45. Manufacturing conversion costs in each year depend on production capacity defined in terms of Y45 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Peter had 280 customers in 2019 and 290 customers in 2020. 8. What is the revenue effect of the price recovery component? A. $10,500,000 F B. $5,000,000 U C. $5,000,000 F D. $10,500,000 U

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Peter Company makes a high-end Appliance, Y45. Peter presents the following data for the years 2019 and 2020: Units of Y45 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity in units of Y45 Total conversion costs 2019 100,000 $1,000 300,000 $100 125,000 2020 105,000 $1,100 307,500 $110 125,000 $12,500,000 $13,750,000 $110 Conversion costs per unit of capacity Selling and customer-service capacity (customers) Total selling and customer-service costs Selling and customer-service capacity cost per customer $100 300 300 $4,500,000 $15,000 $4,687,500 $15,625 Peter produces no defective units but it wants to reduce direct materials usage per unit of Y45. Manufacturing conversion costs in each year depend on production capacity defined in terms of Y45 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Peter had…
Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020. The following additional data are available for 2019 and 2020: 2019 2020 Units Produced & Sold 33,000 37,950 Selling Price $ 360 $ 345 Direct Materials (square feet) 82,500 87,000 Direct Material Costs per square foot $ 31 $ 33 Manufacturing capacity (units) 41,250 39,850 Total Conversion Costs $ 866,250 $ 797,000 Conversion Costs per unit of capacity $ 21 $ 20 Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Co’s change in income from 2019 to 2020 is due to a cost leadership strategy?
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May I ask for an explanation and solution to the question for a better understanding. Thank you! 20. Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000, Unit Price - P10, Unit Cost - P8; Product Two: Units sold - 20,000, Unit Price - P8, Unit Cost - P7; Product Three: Units Sold - 5,000, Unit Price - P6, Unit Cost - 4.50. 2020 = Product One: Units Sold - 20,000, Total Price - P240,000, Total Cost - P180,000; Product Two: Units Sold - 20,000, Total Price - P180,000, Total Cost - P150,000; Product Three: Units Sold - 4,000, Total Price - P20,000, Total Cost - P16,000. The Cost Price factor shows a variance of: a. P28,000 F b. P28,000 U c. P100,000 F d. P100,000 U
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May I ask for an explanation and solution to the question for a better understanding. Thank you! 21. Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000, Unit Price - P10, Unit Cost - P8; Product Two: Units sold - 20,000, Unit Price - P8, Unit Cost - P7; Product Three: Units Sold - 5,000, Unit Price - P6, Unit Cost - 4.50. 2020 = Product One: Units Sold - 20,000, Total Price - P240,000, Total Cost - P180,000; Product Two: Units Sold - 20,000, Total Price - P180,000, Total Cost - P150,000; Product Three: Units Sold - 4,000, Total Price - P20,000, Total Cost - P16,000. The Sales-mix factor shows a variance of: a. P2,500 F b. P4,000 U c. P5,750 F d. P5,750 U
s) Unused Capacity Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020. The following additional data are available for 2019 and 2020: 2019 Units Produced & Sold 33,000 Selling Price $360 Direct Materials (square feet) 82,500 Direct Material Costs per square foot $ 31 Manufacturing capacity (units) 41,250 Total Conversion Costs $ 866,250 Conversion Costs per unit of capacity $21 Compute the cost of unused capacity for 2020. 2020 37,950 $ 345 87,000 $ 33 39,850 $797,000 $ 20
Trusted Products Company makes a household appliance with model number L800. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 3% from 2019 to 2020. The following additional data are available for 2019 and 2020 Units of L800 produced and sold Selling price Direct materials (square feet) Direct material costs per square foot Manufacturing capacity for L800 (units) Total conversion costs Conversion costs per unit of capacity 2020 39,140 $290 94,000 $34 $37 46,100 47,500 $1,140,000 $1,106,400 $24 $24 2019 38,000 $310 97,000 OA. No, because operating income decreased OB. No, because direct material cost per unit decreased OC. No, because direct materials usage per unit increased OD. Yes, because total revenues increased
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