s) Unused CapacityRatliff Appliances Company makes a household appliance with model number RM16. The goal for 2020is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturingconversion costs depend on production capacity defined in terms of RM16 units that can be produced.The industry market size for appliances increased 10% from 2019 to 2020. The following additional dataare available for 2019 and 2020:2019Units Produced & Sold33,000Selling Price$360Direct Materials (square feet)82,500Direct Material Costs per square foot $ 31Manufacturing capacity (units)41,250Total Conversion Costs$ 866,250Conversion Costs per unit of capacity$21Compute the cost of unused capacity for 2020.202037,950$ 34587,000$ 3339,850$797,000$ 20

The amount of money a company spends on coffers ( similar as outfit, space, or labor) that it is…

Answered: s) Unused Capacity Ratliff Appliances…

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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0 out of 3 points Alpha Industries manufactures and sells two models of watches, Prime and Delox. It expects to sell 5,200 units of Prime and 1230 units of Delox in 2023. The following estimates are given for 2023: Question 17 Selling price Direct materials Direct labour Prime $180 35 150 Manufacturing overhead 82 122 Alpha had an inventory of 330 units of Prime and 131 units of Delox at the end of 2022. It has decided that as a measure to counter stock outages it will maintain ending inventory of 380 units of Prime and 214 units of Delox in the current year. Selected Answer: 82,592 Delox $550 65 60 Each Delox watch requires one unit of Crimpson and has to be imported at a cost of $16. There were 121 units of Crimpson in stock at the end of 2022. The management does not want to have any stock of Crimpson at the end of 2023. Compute the dollar amount budgeted for purchase of Crimpson in 2023.
Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58 Direct Labour $74 Variable Manufacturing Overhead $48 Fixed expenses: Fixed Manufacturing Overhead $215,000…

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