! Required information [The following information applies to the questions displayed below.] Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used. Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour Total productivity $ $ 2019 2019 800,000 950,000 200,000 Assume that fixed manufacturing costs are $55 million in both 2018 and 2019. 2018 161 $ 61 $ Required: 1. Compute the total productivity ratios for 2018 and 2019. (Round your answers to 4 decimal places.) 2018 1,000,000 1,100,000 250,000 140 67

! Required information [The following information applies to the questions displayed below.] Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used. Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour Total productivity $ $ 2019 2019 800,000 950,000 200,000 Assume that fixed manufacturing costs are $55 million in both 2018 and 2019. 2018 161 $ 61 $ Required: 1. Compute the total productivity ratios for 2018 and 2019. (Round your answers to 4 decimal places.) 2018 1,000,000 1,100,000 250,000 140 67

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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Required information Skip to question [The following information applies to the questions displayed below.] Ashley Technology Incorporated manufactures a scrambling device for cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley’s operating data for 2 years are as follows: 2022 2021 Units manufactured 800,000 1,050,000 Number of CT140 used 910,000 1,060,000 Number of direct labor hours spent 160,000 210,000 Cost of CT140 per unit $ 157 $ 136 Direct labor wage rate per hour $ 57 $ 63 Required: 1. Compute the total productivity ratios for 2021 and 2022. Assume that fixed manufacturing costs are $51 million in both 2021 and 2022. (Round your answers to 4 decimal places.)
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial operational productivity ratio of DTV-12 in 2021 is: A. 0.65 per unit. B. 0.75 per unit. C. 1.94 per unit. D. 3.02 per unit. E. 3.35 per unit. 2021 612,000 2022 781,200 941,538 1,900 1,073,500 2,710 $1,444,250 $70.00 $ 2,334,250 $86
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial direct labor operational productivity ratio for 2021 is: Multiple Choice 262 units per DLH. 169 units per DLH. 428 units per DLH. 300 units per DLH. 333 units per DLH. 2021 600,000 960,000 1,800 $ 1,443,750 $ 67 2022 780,000 1,072,500 2,600 $ 2,333,750 $82
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $ 1,443,750 $ 2,333,750 Direct labor wage rate per hour $ 67 $ 82 The partial operational productivity ratio of DTV-12 in 2022 is: Multiple Choice 0.63 per unit. 0.73 per unit. 1.92 per unit. 3.00 per unit. 3.33 per unit.
Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $1,443,750 $2,333,750 Direct labor wage rate per hour $67 $82 The partial operational productivity ratio of DTV-12 in 2022 is:
Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour 2019 $ S 750,000 900,000 150,000 156 56 2018 1,000,000 1,050,000 200,000 $ 135 $ 62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019. Required: 1. Compute the total productivity ratios for 2018 and 2019.
An existing robot is used in a commercial material laboratory to handle ceramic samples in the hightemperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $2,000. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm’s before-tax MARR is 25% per year. Based on this information,should the existing robot be replaced? Assume that a robot will be needed for an indefinite period.
Chilton Peripherals manufactures printers, scanners, and other computer peripheral equipment. In the past, thecompany purchased equipment used in manufacturing from an outside vendor. In March 2018, Chilton decidedto design and build equipment to replace some obsolete equipment. A section of the manufacturing plant was setaside to develop and produce the equipment. Additional personnel were hired for the project. The equipment wascompleted and ready for use in September.Required:1. In general, what costs should be capitalized for a self-constructed asset?2. Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?3. Under what circumstance(s) would interest be included in the cost of the equipment?
PKPP Consultants is currently in the process of completing the systems implementation activities for converting RMCO Company’s old system to a new one. Because of unexpected Covid-19 virus and movement control order, Harry, the project manager, is concerned about finishing the project on time. The one remaining activity is testing the new computer system and subsequently eliminating the old one. Harry suggests that they can still meet their completion deadline if they use direct conversion rather than parallel conversion. Required: Assuming that you are the Chief Information System Officer (CIO) of RMCO company, how would you react to Harry’s suggestion? Discuss.
Required Information [The following information applies to the questions displayed below.] Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated ingots are then run through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done being heated the oven temperature is turned back down until a new batch of ingots is ready to be heated. The following information shows the ingots processed and the power costs over the past 10 months. Month January February March April May June July August September October Ingots Power Cost 124 104 94 114 144 134 84 74 64 54 $6,060 $5,060 $4,960 $5,560 Total power costs $6,560 $6,160 $4,560 $3,760 $3,960 $2,960 Required: 2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y = a + bx. X 3.…
Required information [The following information applies to the questions displayed below.] Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated ingots are then run through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done being heated the oven temperature is turned back down until a new batch of ingots is ready to be heated. The following information shows the ingots processed and the power costs over the past 10 months. Month January February March April May June July August September October Ingots Power Cost 135 118 108 128 158 148 98 88 78 68 Total power costs $6,620 $5,620 $5,520 56,120 $7,120 $6,720 $5,120 $4,320 $4,520 $3,520 Required: 2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y = a +bX. 3. Predict…
Brandon Technology makes two models of a specialized sensor for the aerospace Industry. The difference in the two models relates to the required accuracy of the sensor. The Standard model is used for most normal operations while the High-Performance model is used for high-altitude and specialized missions. Before shipment, the two models are passed through a machine that, among other things, certifies the accuracy of the sensor. The company only has one testing machine. The price and costs of the two sensor models are shown here: Price per sensor Standard $ 52 $ 34 0.04 Variable cost per sensor Testing hours per sensor The testing machine used for both models has a capacity of 8.250 hours annually. Fixed manufacturing costs are $2,400,000 annually. Required: a. Suppose that the maximum annual unit sales that is possible for Brandon Technology is 250,000 units of the Standard model and 80,000 of the High-Performance model. How many units of each sensor model should Brandon Technology…