Requlred Information The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below.
Q: Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164,…
A: Relevant cost refers to the cost which is avoidable and differs under the two alternatives, if the…
Q: Required information [The following information applies to the questions displayed below.] Ramort…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Required information [The following information applies to the questions displayed below.] t Diego…
A: Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120,…
A: Incremental analysis, which is also known as differential analysis, is a decision-making approach…
Q: Required information [The following information applies to the questions displayed below.) Martinez…
A: Product costs are costs incurred in the manufacturing of products during the period. Example:-…
Q: tes The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its…
A: Working Note :— Contribution = Selling price per unit - Variable Cost per unit Direct materials…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162,…
A: Income from special order is computed as = Revenue from special order - Relevant cost of special…
Q: [The following information applies to the questions displayed below.] Diego Company manufactures one…
A: The net operating income (also known as NOI) of a property is a standard metric that is used to…
Q: rect labor $ 2.60 riable manufacturing overhead ked manufacturing overhead zed selling expense ced…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 4. (Appendix) Assuming that the variable cost method is used, determine the following: a. Variable…
A: The markup is calculated on cost. For requirement 6, the variable cost is to be consider as…
Q: ! Required information [The following information applies to the questions displayed below.] Cane…
A: The objective of the question is to calculate the maximum contribution margin that Cane Company can…
Q: Required information [The following information applies to the questions displayed below.] Martinez…
A: Fixed manufacturing overheads per unit vary in accordance with the units produced whereas total…
Q: None
A: Step 1: The maximum price to be paid per pound of raw material is equal to the sum of the…
Q: of 8 ! Required information [The following information applies to the questions displayed below.]…
A: Fixed Manufacturing cost remains same with the change with level of Activity. Only Fixed…
Q: [The following information applies to the questions displayed below.] The following data are…
A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…
Q: Kairos, Inc. produces three products namely, Product X, Product Y, and Product Z. The following data…
A: Product mix refers to the combination of different products that a company produces and sells. It is…
Q: Condensed balance sheets for Phillips Company and Solina Company on January 1, 2013, are as follows:…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Books Phillips Company Account Titles and…
Q: gs
A: The Costs are classified into variable or fixed. Variable costs per unit remains same and varies in…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $240 and $162,…
A: The cost which is avoidable and differs between the two alternatives is referred to as relevant…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Variable costing refers to the concept used for the cost of production without including the fixed…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $210 and $172,…
A: Contribution margin is the difference between the sales and the variable cost, it thus contributes…
Q: Requlred Informetlon [The following information applies to the questions displayed below.] Martinez…
A: We first need to understand the meaning of period cost. Costs are divided into two types which are…
Q: pense Sales commissions Variable administrative expense Total variable cost $ 1.00 $ 0.50 6. If…
A: Variable Costs Cost that fluctuate according on the number of products or services a company…
Q: Required Information [The following information applies to the questions displayed below] Diego…
A: Break-Even Point and CVP Analysis is a concept of cost accounting to determine the break-even level…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105,…
A: Traceable fixed manufacturing overhead is related to that particular product so that is avoidable in…
Q: ! Required information [The following information applies to the questions displayed below.)…
A: Answer :) If you have any doubt please let me know 🙏. Thank You, Keep Smile
Q: Required Information [The following information applies to the questions displayed below.]…
A: Activity based costing (ABC) method is an accounting method of allocating manufacturing overheads to…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $185 and $120,…
A: The decision to make or buy a product is to be taken by the manager by comparing the costs incurred…
Q: ! Required information [The following information applies to the questions displayed below.] Diego…
A:
Q: Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80,…
A: The contribution margin is used to determine the amount of sales available to cover the fixed costs…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: MAKE OR BUY DECISION The make-or-buy decision is choosing between manufacturing a product within a…
Q: laski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: Profit or loss from special order is based on incremental revenue from special order and incremental…
Q: [The following information applies to the questions displayed below.] Abel Company manufactures two…
A: The entity may be producing more than one product, It may need to determine which product line to be…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164,…
A: Relevant Costs : Relevant costs are also referred as differential cost. It is a concept in…
Q: 对 a Required Information [The following information applies to the questions displayed below.] Cane…
A: The contribution margin per unit is calculated by deducting variable expenses per unit from sales…
Q: Cane Company manufactures two products called Alpha and Beta that sell for $205 and $164,…
A: The fixed costs are costs which remain the same and do not vary with the units of production. Thus…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: For decision making purposes only relevant cost are considered, relevant cost are those cost that…
Q: The AZ-78804 company is considering adopting an activity-based costing system with the following…
A: Overheads Estimated Overheads Cost Driver Cost Driver rate Labor related $ 41,436 4800 DLHs $…
Q: Required information [The following information applies to the questions displayed below.] Martinez…
A: The period costs are the costs that are not directly related to production. The product costs are…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: The total fixed cost is always constant and shall remain same irrespective of the number of units…
Q: Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-the…
A: Contribution margin represents the amount of money from each unit of a product's sale that…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Contribution margin is the excess of sales revenue of the business over variable costs incurred.…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: Make cost is the cost to produce the product internally. Buy cost is the cost to purchase the…
financial advantage (disadvantage) of discontinuing the Beta product line
Beta = 130000 * $37 = $4,810,000
= $4,810,000( 175-24-32-24-27 )*59000
= $798,000
Step by step
Solved in 2 steps
- 9RahulRequired information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 20,000 units? b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 20,000 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be…
- Required information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expenseRequired information [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 53,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income 3. Assume that the company expects sales of each product to increase to 67,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). (Round "per unit" answers to 2 decimal places.) Sales Variable cost Contribution margin Fixed costs Income (loss) Mementos $ 863,900 Carvings $ 863,900 604,730 259, 170 116,170 86,390 777,510 634,510 $ 143,000 $ 143,000 HENNA COMPANY Contribution Margin Income Statement Carvings Units 67,000…! Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $76 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 58,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 23 $ 15 $3 $ 3 $ 1,160,000 $ 640,000 The company sold 40,000 units in the East region and 14,000 units in the West region. It determined that $320,000 of its fixed selling and administrative expense is traceable to the West region, $270,000 is traceable to the East region, and the remaining $50,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead…
- Don't give answer in image format日 Required Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha $ 42 Beta $424 Direct materials Direct labor Variable manufacturing overhead, Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 42. 34 31 34 27 $173 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 13. Assume that Cane's customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the raw material available for production is limited to…None
- ! Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.) X Answer is complete but not entirely correct. $ 65.000 x Average Cost Per Unit $ 6.30 $ 3.80 $ 1.50 $ 4.00 $ 3.30 $ 2.00 $ 1.00 $ 0.50 Total period cost! Required information [The following information applies to the questions displayed below.] A company produces two products. Product 1 sells for $140 and Product 2 sells for $100. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Product Product 1 2 Direct materials $ 32 $ 16 Direct labor 24 19 Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 10 20 22 16 12 19 14 Total cost per unit $121 $ 92 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Consider each of the following questions separately. 3. Assume the company normally produces and sells 94,000 unit of Product 2 per year. What is the…! Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $79 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 50,000 units and sold 45,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 29 $ 16 $2 $4 $ 800,000 $ 516,000 The company sold 35,000 units in the East region and 10,000 units in the West region. It determined that $240,000 of its fixed selling and administrative expense is traceable to the West region, $190,000 is traceable to the East region, and the remaining $86,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs…