Please solve all as they connect with each other please solve by steps to understand stand 1-Assume that an industrial company producing two products x and y with the following cost and production data Y Direct 70$ 90 $ materials per unit Direct wages 50$ 50 $ per unit Indirect ? industrial costs per unit Production 1200 8000 and sales unit unit volume Costs are charged to industrial costs on the basis of 200% of direct wages. The company also uses the + surplus model (30% of industrial costs, setting selling prices for products Required: - Determine the current selling price of each producer (x) and (y) 2- assuming the following available data on specific activities Activity Producer Producer X needs Activity load y needs rate 200 $ / prepare prepare Preparing 700 1650 Machines prepare for Operation Purchase 150 $/ 1000 1000 orders order order order issued Product 300 $/ 500 2000 quality cheek cheek cheek check Machinery 20 h/$ 8000 h 16000 h related activities Required: Determine the price at which products should be sold using the costs of activities 3- Briefly explain using the solution results in (1) and (2) the effect of product unit cost error on company profitability.
Please solve all as they connect with each other please solve by steps to understand stand 1-Assume that an industrial company producing two products x and y with the following cost and production data Y Direct 70$ 90 $ materials per unit Direct wages 50$ 50 $ per unit Indirect ? industrial costs per unit Production 1200 8000 and sales unit unit volume Costs are charged to industrial costs on the basis of 200% of direct wages. The company also uses the + surplus model (30% of industrial costs, setting selling prices for products Required: - Determine the current selling price of each producer (x) and (y) 2- assuming the following available data on specific activities Activity Producer Producer X needs Activity load y needs rate 200 $ / prepare prepare Preparing 700 1650 Machines prepare for Operation Purchase 150 $/ 1000 1000 orders order order order issued Product 300 $/ 500 2000 quality cheek cheek cheek check Machinery 20 h/$ 8000 h 16000 h related activities Required: Determine the price at which products should be sold using the costs of activities 3- Briefly explain using the solution results in (1) and (2) the effect of product unit cost error on company profitability.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Please solve all as they connect with each other please solve by steps to understand stand
1-Assume that an industrial company producing two products x and y with the following cost
and production data
Y
Direct
70$
90 $
materials per
unit
Direct wages
50$
50 $
per unit
Indirect
industrial
costs per unit
Production
1200
8000
and sales
unit
unit
volume
Costs are charged to industrial costs on the basis of 200% of direct
uses the + surplus model (30% of industrial costs, setting selling prices for products
ages. The
also
Required:
- Determine the current selling price of each producer (x) and (y)
2- assuming the following available data on specific activities
Activity
Activity
Producer Producer
load
X needs
y needs
rate
200 $ /
prepare prepare
Preparing
700
1650
Machines
prepare
for
Operation
Purchase
150 $ /
1000
1000
orders
order
order
order
issued
Product
300 $/
500
2000
quality
check
cheek
cheek
cheek
Machinery 20h/$
8000 h
16000 h
related
activities
Required: Determine the price at which products should be sold using the costs of
activities
3-
Briefly explain using the solution results in (1) and (2) the effect of product unit cost error on
company profitability.
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