Synergy Inc. produces a component that is popular in many refrigeration systems. Data on three of the five different models of this component are as follows.ModelVolume needed (units)Manufacturing costsABC7,000 8,400 4,200Variable direct costs$14 $34 $28Variable overhead71421Fixed overhead152824Total manufacturing costs$36$76$73Cost if purchased$29$59$55Synergy applies variable overhead on the basis of machine hours at the rate of $3.50 per hour. Fixed overhead costs are not avoidable.Models A and B are manufactured in the Freezer Department, which has a capacity of 39,200 machine processing hours. Which one of the following options should berecommended to Synergy's management?

1) First, let's calculate machine hours per unit:- For Model A: $7/3.50 = 2 machine hours per unit-…

Answered: Synergy Inc. produces a component that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

See similar textbooks

Similar questions

Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: LOADING... (Click the icon to view the costs.) Direct materials $7.00 Direct labor 2.00 Variable overhead 8.00 Fixed overhead 6.50____________________________ Manufacturing product cost $23.50__________________________ _________________________________ LOADING... (Click the icon to view additional information.) Another company has offered to sell Sensor Systems the switch for $19.00 per unit. If Sensor Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing…
Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,020 remotes is as follows:
Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Line Item Description SupportDepartmentsS1 SupportDepartmentsS2 ProducingDepartmentsAssembly ProducingDepartmentsPainting Direct costs $200,000 $140,000 $115,000 $96,000 Normal activity: Square footage — 500 1,875 625 Machine hours 337 — 3,200 12,800
ABC Company has an ABC system with three pools: Total cost in cost pool Total $13,000 Activity Product X Machine setups Customer service Maintenance Cost Driver Product Y #setups #orders machine- hours $6,000 $10,000 Compute total capacity costs allocated to product X. Group of answer choices $29,000 $9,000 $18,500 $5,000 not enough information Activity volume (#cost driver units) 45 15 25 20 65 5 20 25 50
Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data are as follows: Cost per unit Direct materials Perspex (0.5 meters @ $15 per meter) $ 7.50 Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00 Direct manufacturing labour (0.5 hr @ $30.00 per hr) Manufacturing overhead Total Cost 15.00 Required Should HF accept the offer. Show all computations. 30.00 $57.50 Additional information 45% of the Manufacturing overhead changes with the number of units produced. Additionally, if production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The budgeted production used to compute overheads is 10,000 units per quarter. HF has been approached by another company who is willing to supply the face shields at $50. Per unit. The space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin per quarter.
ABC Company has an ABC system with three pools: Total cost in cost pool Activity Machine setups Customer service Maintenance $18,500 $5,000 Cost Driver $29,000 #setups O $9,000 #orders not enough information machine- hours $13,000 $6,000 $10,000 Compute total capacity costs allocated to product X. Activity volume (#cost driver units) Product X Product Y Total 45 15 25 20 5 25 65 20 50
Required information [The following information applies to the questions displayed below.] Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow. Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Required A Required B KA-15 Required C Product costs per unit 600 360 750 $ 82,000 16,500 Required: a. Compute the individual product costs per unit assuming that Kilbourne Appliances uses the number of units to allocate overhead to the products. b. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct labor cost. c. Compute the individual product costs per unit assuming that Kilbourne Appliances uses direct material costs to allocate overhead to the products. KA-24 400 540 1,750 $ 130,000 38,500 KA-15 KA-24 $ 222,520.00 $ 251,180.00 Total 1,000 900 2,500 $ 212,000 55,000…
i need the answer quickly
Please help me to solve this question
uestions | bartleby G How many units must be in... My Home CengageNOWv2| Online te.. eBook Show Me How A production department within a company received materials of $10,000 and conversion costs of $8,000 from the prior department. It added material of $36,500 and conversion costs of $70,750. The equivalent units are 25,000 for material and 22,500 for conversion. What is the unit cost for materials and conversion? When required, round final answers to two decimal places. Unit Cost Materials Conversion $ + %24
ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A% merica AS... rk i Required information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $5.00 per pound) $ 150.00 98.00 Direct labor (7 hours @ $14 per hour) Variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit Production (in units) Standard direct labor hours (7 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 51,000 units per quarter. The following additional information is available. 49.00 63.00 $360.00 70% 35,700 249,900 Direct materials (1,377,000 pounds @ $5.00 per pound)…
Please do not give solution in image format thanku

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS