TB MC Qu. 4-78 (Algo) The Young Company has gathered the... The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price $15 7 20 42 21 $63 The above cost information is based on 10,800 units. A distributor has offered to buy 3,300 units at a price of $44 per unit. The distributor claims this special order would not disturb regular sales at $63. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?

TB MC Qu. 4-78 (Algo) The Young Company has gathered the... The Young Company has gathered the following information for a unit of its most popular product: Direct materials Direct labor Overhead (40% variable) Cost to manufacture Desired markup (50%) Target selling price $15 7 20 42 21 $63 The above cost information is based on 10,800 units. A distributor has offered to buy 3,300 units at a price of $44 per unit. The distributor claims this special order would not disturb regular sales at $63. Special packaging and other selling expenses would be an additional $0.50 per unit for the special order. How many units of regular sales could be lost before this contract is not profitable?

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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Required information. Cost Classifications (Algo) [The following information applies to the questions displayed below] Kubin Company's relevant range of production is 26,000 to 35,500 units. When it produces and sells 30,750 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 Average Cost per Unit $8.50 $5.60 $ 3.10 1. Total amount of product cost 2. Total amount of period cost 3. Total amount of product cost 4 Total amount of period cost $6.60 $5.10 $.4.10 $2.00 $2.10 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 30,750 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 30,750 units? 3. For…
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A moodle1.du.edu.om The company produced 1000 units in January. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Total Costs Costs Material Costs 35000 45000 Labor Costs 55000 67500 Production Facilities cost 2500 10500 On the basis of above information, what is the estimated cost for 1600 units from the following? Select one: a. 173000 b. 158500 c. 178500 d. 163750 II
The Salsa Division of the Spicy Foods Company has provided you with the following information at a volume of 40,000 bottles: Cost Per unit Direct material $8.00 Direct labor $4.00 Variable overhead $3.00 Fixed overhead - Traceable $6.00 Fixed overhead - Allocated $5.00 Total $26.00 An outside vendor has approached Salsa and offered to produce 30,000 bottles of salsa at a price of $22.00 per unit. By outsourcing, the company could begin operating a new line of Hot Sauce that is expected to generate sales of $500,000. Outsourcing will also allow Salsa to eliminate 30% of the division's traceable fixed overhead. NOTE: The contribution margin ratio for Hot Sauce = 40%. Determine the impact on income if Salsa accepts the outside supplier's offer.
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Given the following information for a product: Direct labor hours: 0.25 hour/unit Direct labor costs: $20/hour Direct materials cost: S5/unit Overhead costs: 110% of direct labor Packaging and shipping: $2/unit Desired profit margin: 2096 of the total cost Suppose that a market survey has shown that the best competitor's selling price for the product is $19.50 per unit. After conducting a value engineering study, It was found that the material cost is high and another equal and less expensive material can be used to achieve the required target cost. What should the material cost per unit be to achieve the required target cost for the product?
Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $13 $8 Demand for "W" is 241 units and "H" is 308 units If Costner only 178 labor hours available, how many units of "H" should be manufactured? Round your final answer to the nearest whole unit.
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Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quantity purchased and used in production 100 Standard quantity for units produced 110 Actual labor rate per hour $15 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 220 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F" (for Favorable) or "U" (for Unfavorable) - capital letter and no quotes. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) D Material Price Material Quantity Total DM Cost Variance Labor Rate Labor Efficiency Total DL Cost Variance
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You make widgets, which is a subassembly for you main product of whatsup. An outside vendor has provided you with a quote to supply the widget part for $ 72.00 per unit Your cost records show the following: Your projected production for the widget is 12,500 units Item of Cost Per Unit Cost Direct Material $18.75 Direct Labor $38.00 Variable manufacturing overhead $9.25 Lease on manufacturing facility $36,000.00 per year Depreciation of equipment $2.50 Allocated Corporate Expenses $1.25 If this offer is accepted, you can sublease the manufacturing facility for $15,000 per year All direct and variable costs can be avoided. The equipment has no salvage value How much would net operating income be changed if the outside supplier offer was accepted? Show all calculations for full credit