oo lli bresbs bounolo bin ogawwiiniebwon deo oMd tns linoule ba ton n buedni vlibeata saion sdrdi ban vad gid niW eeoni vlibasiaA ot be olnoereadobodnogual b nomo bdS6-6 Classify cost behavior (Learning Objectives 1 & 2)The ReCycle is a bicycle built largely from recycled materials. ldentify the following cotsconnected with the manufacture of the ReCycle bike as variable or fixed:a. Rubber used in bike tiresb. Recycled aluminum used to make the bike framec. Lubricant used on clipless pedal springsd. Quality inspector's salarye. Depreciation on equipment used to machine the aluminum in the bike framef. Renewable cork used to make the saddle (the seat)g. Patent on belt drive (used instead of a chain)

The costs incurred in production can be classified as fixed and variable cost. The fixed cost…

Answered: S6-6 Classify cost behavior (Learning…

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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Please answer both the question please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) 1.) Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 24 and 36 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Line Item Description Amount Maintenance Department $6,000 Janitorial…
Which of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plant
Required:(a) Compute the equivalent units for direct materials (From Moulding & Direct materialsadded) and conversion costs.(b) Compute the: Cost per equivalent unit for direct materials and conversion costs Total cost of the skis completed and transferred out to the Packing Department. Cost of the unexpected losses Cost of ending work in process inventory in the Spraying Department.
Classifying costsThe following is a list of costs that were incurred in the production andsale of lawn mowers: a. Premiums on insurance policy for factory buildingsb. Tires for lawn mowersc. Filter for spray gun used to paint the lawn mowersd. Paint used to coat the lawn mowers, the cost of which isimmaterial to the cost of the final product e. Plastic for outside housing of lawn mowersf. Salary of factory supervisorg. Hourly wages of operators of robotic machinery used inproduction h. Engine oil used in mower engines prior to shipmenti. Salary of vice president of marketingj. Property taxes on the factory building and equipmentk. Cost of advertising in a national magazine1. Gasoline engines installed in the lawn mowers m. Electricity used to run the robotic machineryn. Straight-line depreciation on the robotic machinery used tomanufacture the lawn mowerso. Salary of quality control supervisor who inspects each lawnmower before it is shipped p. Attorney fees for drafting a new lease…
Below are several Costs. Identify them Fixed, Variable or Mixed UTILITIES DIRECT MATERIALS INSURANCE SNOW REMOVAL QUALITY INSPECTOR CELL PHONE DEPRECIATION – STRAIGHT LINE UPS FREIGHT IN PATENTS FREIGHT OUT…
Quality improvement programs and cost savings Gurland Valves Company manufactures brass valves that meet precise specification standards. All finished valves are inspected before being packaged and shipped to customers. Rejected valves are returned to the initial production stage to be melted and recast. Such rework requires no new materials in casting but requires new materials in finishing. The following unit cost data for direct materials, direct labor, and time-driven activity-based costing (ABC) are available: Casting Finishing Inspection Packing Total Costs Direct materials Direct labor Support $225 $12 $0 $8 $245 $84 $121 $24 $16 $245 $122 $164 $30 $20 $336 As a result of a quality improvement program, the reject rate has decreased from 6.4% to 5.1%, and the number of rejects has decreased by (6.4% - 5.1%) x (10,000) units. Improvements in reject rates have also led to a decrease in work-in-process inventory from $386,000 to $270,000. Inventory carrying costs are estimated to be…
ervices Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Security Molding Assembly Department Department Department Department Square feet 610 800 800 6,400 Asset value $120 $140 $880 $1,000' Department cost $2,100 $1,300 $10,900 $12,500 Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department.
The following is a list of costs that were incurred in the production and sale of large commercial airplanes:a. Cost of electronic guidance system installed in the airplane cockpitb. Special advertising campaign in Aviation World magazinec. Salary of chief compliance officer of companyd. Salary of chief financial officere. Decals for cockpit door, the cost of which is immaterial to the cost of the final productf. Cost of electrical wiring throughout the airplaneg. Cost of normal scrap from production of airplane bodyh. Instrument panel installed in the airplane cockpiti. Depreciation on factory equipmentj. Masks for use by painters in painting the airplane bodyk. Cost of paving the headquarters employee parking lotl. Turbo-charged airplane enginem. Prebuilt leather seats installed in the first-class cabinn. Human Resources Department costs for the yearo. Hourly wages of employees that assemble the airplanep. Salary of the Marketing Department personnelq. Oil to lubricate factory…
LO.1 & LO.2 (Activity analysis; MCE) Log Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart: Average Number of Days Operations Receiving materials Storing materials 10 Measuring and cutting materials Handling materials 7 Setting up and moving scaffolding Assembling materials 3 Building fireplace 12 Pegging logs 8 Cutting and framing doors and windows 5 Sealing joints Waiting for county inspectors Inspecting property (county inspectors) a. What are the value-added activities and their total time? b. What are the non-value-added activities and their total time? c. Calculate the manufacturing cycle efficiency of the process. d. Explain the difference between value-added and non-value-added activities. 9, 6.
Nizam Company produces speaker cabinets. Recently, Nizam switched from a traditional departmental assembly line system to a manufacturing cell in order to produce the cabinets. Sup-pose that the cabinet manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell:a. Depreciation on electric saws, sanders, and drills used to produce the cabinetsb. Power to heat and cool the plant in which the cell is locatedc. Salary of cell supervisord. Wood used to produce the cabinet housingse. Maintenance for the cell’s equipment (provided by the maintenance department)f. Labor used to cut the wood and to assemble the cabinetsg. Replacement sanding beltsh. Cost of janitorial services for the planti. Ordering costs for materials used in productionj. The salary of the industrial engineer (she spends about 20 percent of her time on work forthe cell)k. Cost of maintaining plant and grounds l. Cost of plant’s personnel officem. Depreciation on…
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