Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advancedfeatures. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Directmaterials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans touse to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [Equipment setup, 100 setups, 60 setups,$88,000งRequired:1. "Calculate the manufacturing overhead allocation rate for each activity using ABC2. Calculate the cost of the Blue Phone."3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone

The objective of the question is to calculate the manufacturing overhead allocation rate for each…

Answered: Ring Company makes two models of phones…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the total costs and Material 3 is 5,000. Other information: Material 1 Material 2 Material 3 Labor hours / unit 0.15 0.20 0.25 1. How many units of each component should be outsourced and insourced? 2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced? FILL IN THE BLANKS FOR THE FINAL ANSWER Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0…
Use the information provided to calculate standard costs: To make one switch it takes 20 feet of plastic-coated copper wire and 0.3 pounds of plastic material. The plastic material can usually be purchased for $15 per pound, and the wire costs $2.99 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.4 hours. These workers are paid $28 per hour. The second type of labor is fınishing, which takes 2.4 hours. These workers are paid $26 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.35 per labor hour. The fixed overhead rate is $15.42 per hour. What is the total standard cost for manufacturing overhead? Round to the nearest penny, two decimal places.
Deep South Glass Company is exploring different prediction models that can be used to forecast machine maintenance costs. One independent variable under consideration is machine hours. Following are matching observations on machine maintenance costs and machine hours for the past six months: Month Machine hours Machine Maintenance costs 1 300 $20,000 400 $24,000 3 240 $17,000 4 370 $22,000 5 200 $13,000 6 225 $14,000 In a high-low model, which months' observations would be used to compute the model's parameters? 4 and 5 1 and 6 2 and 6 O 2 and 5
provide correct answer for both
Blanco, Inc. provides computer processing services and relevant data set up by the firm's management are shown below: No. of pages per hour, 20 No. or hours per month, 500 Variable costs per hour, Ph 30 Fixed costs per month, Ph10,000. For the month of May 2021 12,000 pages are generated in 450 hours. The actual variable costs totaled Ph13,200, while the actual fixed costs equaled the estimated amount. The total standard cost for May was ? Ph 25,000 Ph 27,500 Ph 30,000 Ph 31,500
Danna Lumus, the marketing manager for a division that produces a variety of paper products, was considering the divisional manager’s request for a sales forecast for a new line of paper napkins. The divisional manager was gathering data so that he could choose between two different production processes. The first process would have a variable cost of $10 per case produced and fixed costs of $100,000. The second process would have a variable cost of $6 per case and fixed costs of $200,000.The selling price would be $30 per case. Danna had just completed a marketing analysis that projected annual sales of 30,000 cases. Danna was reluctant to report the 30,000 cases forecast to the divisional manager. She knew that the first process was labor-intensive, whereas the second was largely automated with little labor and no requirement for an additional production supervisor. If the first process were chosen, Jerry Johnson, a good friend, would be appointed as the line supervisor. If the…
WSM Corporation is considering offering an air shuttle service between Sao Paulo and Rio de Janeiro. It plans to offer four flights every day (excluding certain holidays) for a total of 1,400 flights per year (= 350 days × 4 flights per day). WSM has hired a consultant to determine activity-based costs for this operation. The consultant’s report shows the following. Activity Activity Measure (cost driver) Unit Cost(cost per unit of activity) Flying and maintaining aircraft Number of flights $ 1,300 per flight Serving passengers Number of passengers $ 5 per passenger Advertising and marketing Number of promotions $ 48,000 per promotion WSM estimates the following annual information. With 13 advertising promotions, it will be able to generate demand for 40 passengers per flight at a fare of $190. The lease of the 60-seat aircraft will cost $3,600,000. Other equipment costs will be $1,800,000. Administrative and other marketing costs will be $1,000,000. Required: a.…
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 1.55 feet of leather and predicts leather will cost $2.60 per foot. Suppose Perfect Pet made 50 collars during February. For these 50 collars, the company actually averaged 1.85 feet of leather per collar and paid $2.10 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Calculate the standard direct materials cost per unit. Note: Round your answer to 2 decimal places. Standard Direct Materials per Collar
Given help with this problem is solution

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS