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

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 9E: Stahman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Stahlman...

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Stahman, Inc., estimates its hidden external failure costs using the Taguchi loss function. Stahlman produces plastic sheets that vary in thickness and grade. For one of its large-volume products, it was determined that k = 30,000 and T = 0.28 inches in diameter. A sample of four units produced the following values: Required: 1. Calculate the average loss per unit. 2. Assuming that 100,000 units were produced, what is the total hidden cost? 3. Assume that the multiplier for Stahmans hidden external failure costs is six. What are the measured external costs? Explain the difference between measured costs and hidden costs.
Two products, Product A and Product B, are associated with the following environmental activities and associated data: Driver data: Which of the two products has the greatest environmental impact? a. Product A because its total environmental cost is 400,000. b. Product A because it causes more waste and pollution control than Product B. c. Product B because its total environmental cost is 400,000. d. Product B because its environmental cost per unit is five times more than Product As unit environmental cost.
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A company is considering two alternatives with the following costs: Alternative 1 Alternative 2Material costs$87,000 $87,000 Utilities costs$45,000 $44,100 Review costs$41,000 $44,100 Direct labor costs$51,000 $51,000 Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives.
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