QUESTION 3 Gabriel Manufacturing must implement a manufacturing process that reduces the amount of toxic by-products. Two processes have been identified that provide the same level of toxic by-product reduction. Usage is currently 850 units. The first process would incur $280,000 of fixed costs and $620 per unit of variable costs. The second process has fixed costs of $125,000 and variable costs of $920 per unit. What is the total cost of the second process? D

QUESTION 3 Gabriel Manufacturing must implement a manufacturing process that reduces the amount of toxic by-products. Two processes have been identified that provide the same level of toxic by-product reduction. Usage is currently 850 units. The first process would incur $280,000 of fixed costs and $620 per unit of variable costs. The second process has fixed costs of $125,000 and variable costs of $920 per unit. What is the total cost of the second process? D

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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4 Al Drama Corporation planning to manufacture 5,000 new products in the organization. The estimated costs are given below. Research and development cost OMR 20,000 Manufacturing cost OMR 5 per unit Production and construction cost OMR 7,000 Repair cost OMR 3,000 Maintenance cost OMR 5,000 Decommissioning cost OMR 1,000 Choose the total life cycle cost per unit of new product: a. OMR 12.2 b. None of these c. OMR 14.2 d. OMR 13.2
Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $158,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $235 $429 $149 Unit variable cost 185 351 131 Unit contribution margin $ 50 $ 78 $ 18 Autoclave hours per unit 4 6 2 Total process hours per unit 8 12 6 Budgeted units of production 2,400 2,400 2,400 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units…
Question 2 (L03) Yates Corp. wants to develop a cost equation for its administrative costs. The controller believes the appropriate cost driver is units produced. Last year's data are presented below: Month January February March April May June July August September October November December Total Average Units produced 32,500 37,700 24,700 40,300 49,400 42,900 53,300 45,500 26,000 48,100 61,100 54,600 516,100 43,008 Administrative Costs $24,288 27,720 17,820 30,360 37,290 29,040 32,670 30,030 20,460 34,320 40,920 36,630 $361.548 $30,129 Required: (a.) What is the equation for administrative costs using the high-low method? (b.) Prepare an estimate of administrative costs for a month when 30,000 units are produced.
Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $296,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $324 $286 $158 Unit variable cost 255 234 139 Unit contribution margin $ 69 $ 52 $ 19 Autoclave hours per unit 6 4 2 Total process hours per unit 18 8 6 Budgeted units of production 4,700 4,700 4,700 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units…
Accounting Evman Company has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system or a labour-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: computer-assisted manufacturing system labour-intensive production system Direct Material $5.00 $5.60 Direct Labour .5DLH @ $12 $6.00 .8 DLH @ $9 $7.20 Variable Overhead .5 DLH @ $6 $3.00 .8 DLH @ $6 $4.80 Fixed Overhead * $2,440,000 $1,320,000 These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company’s marketing research department has recommended an introductory sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit…
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2.) find the efficiency rate 4.) find the overall equitment effectiveness
Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $177,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $353 $99 $282 Unit variable cost 278 81 248 Unit contribution margin $ 75 $ 18 $ 34 Autoclave hours per unit 6 2 4 Total process hours per unit 18 6 8 Budgeted units of production 3,100 3,100 3,100 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units…