The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at peak efficiency, a skilled worker will take 21 hours to produce assemble one massage chair and 20 minutes to package one massage chair. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 2.0 hr to adjust the tools, re-oil relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $40 per hour which excludes on-costs of 20 per cent. Question1 If the company adopts perfection standards, what is the standard labour cost for one massage chair? Round to 2 dec places if required. so Question 2 Assume that for every 100 massage chairs assembled, 25 massage chairs will be defective and will have to discarded. If the company adopts perfection standards, recalculate the standard labour cost for one massage chair. Round to 2 dec places if required.

The following information relates to Questions 1 to 2. The management accountant of a furniture manufacturer is developing a standard for the labour cost of one massage chair. When operating at peak efficiency, a skilled worker will take 21 hours to produce assemble one massage chair and 20 minutes to package one massage chair. However, due to the complexity of manufacturing the chair, even a skilled worker who is highly efficient often needs another 2.0 hr to adjust the tools, re-oil relevant machinery and rework some parts of the chair prior to packaging. A skilled worker is paid $40 per hour which excludes on-costs of 20 per cent. Question1 If the company adopts perfection standards, what is the standard labour cost for one massage chair? Round to 2 dec places if required. so Question 2 Assume that for every 100 massage chairs assembled, 25 massage chairs will be defective and will have to discarded. If the company adopts perfection standards, recalculate the standard labour cost for one massage chair. Round to 2 dec places if required.

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

i need the answer quickly
Albedo Incorporated manufactures high-end replacement telescope lenses for amateur and professional astronomers who are seeking to upgrade the performance of their telescopes. You have just become employed as a staff accountant at Albedo, and Jordan Coleman, the controller, has asked you to help with maintenance cost estimation for the lens manufacturing process. You review the manufacturing process and decide that the best cost driver for maintenance costs is machine hours. The data below are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours $ 3,210 4,650 5,175 3,350 3,100 1 2 3 4 5 6 7 8 9 10 11 12 2,950 2,900 2,900 4,120 4,350 3,500 3,775 2,750 3,900 4,050 2,690 2,500 2,580 2,300 2,500 3,160 3,325 2,780 3,000 Required: 1. What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Negative amounts should be indicated by a minus sign.)
Hamilton, a decorative wall clock manufacturer uses activity-based costing. Each clock consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Activity Materials handling Number of parts Machining Machine hours Assembling Packaging What is the cost of machining per clock? Multiple Choice $144.00 Allocation Base $180.00 Number of parts Number of finished clocks Cost Allocation Rate $ 0.08 7.20 0.35 2.70
Use the information provided to calculate standard costs: To make one switch it takes 19 feet of plastic-coated copper wire and 0.8 pounds of plastic material. The plastic material can usually be purchased for $20 per pound, and the wire costs $2.12 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.1 hours. These workers are paid $27 per hour. The second type of labor is finishing, which takes 2.4 hours. These workers are paid $28 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.25 per labor hour. The fixed overhead rate is $15.26 per hour. What is the total standard cost for manufacturing overhead? Round to the nearest penny, two decimal places.
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total…
Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 15 feet of plastic-coated copper wire and 0.5 pounds of plastic material. The plastic material can usually be purchased for $21.00 per pound, and the wire costs $2.40 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 $26.00 per hour. The second type of labor is finishing, which takes 1 hours. These workers are paid $28.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.90 per labor hour. The fixed overhead rate is $15.60 per hour. Round your answer to two decimal places. What is the standard Cost?
Barbara, the manager of Metlock, is analyzing the company's MOH costs from last year. Metlock had always followed an actual costing system when determining the costs of its customizable telescopes. Barbara wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Metlock has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Barbara is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours $426,240 Actual MOH rate $ 419,040 Determine the actual MOH rate and the budgeted MOH rate Metlock would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ 96,000 108,000 /machine hour /machine hour
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow: Standard Model Deluxe Model Number of machine hours 25,800 30,800 Number of material moves Number of setups 590 890 70 540 Total estimated overhead costs are $347,100, of which $170,200 is assigned to the material handling cost pool and $176,900 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC.
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.
Suppose the smartphone manufacturer Peony Electronics provides the following information for its costs last month (in millions): (Click the icon to view the costs.) Read the requirements. Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and Manufacturing Overhead. Then calculate the total cost for each value chain category. (Enter amounts in millions. If an input field is not used in the table, leave the input field empty; do not enter a zero.) Cost Delivery expense Salaries of salespeople Chipset Exterior case for phone Assembly-line workers' wages Technical support hotline Depreciation on plant and equipment Rearrange production process 1-800 (toll-free) line for customer orders Scientists' salaries Total costs Cost R and D $ 14 Peony Electronics Value Chain Cost Classification Direct Design Materials LA 60 5 $…
Congratulations! You have been hired as a Cost Accountant by Sundial, Inc., which produces sunglasses. Your duties include developing cost standards for materials and labor, designing and implementing cost accounting systems, defining various product and operational costs, analyzing production costs and recommending changes. When the trial period is over, you will have a performance review to demonstrate the completed tasks and gained knowledge. There are two models of sunglasses in Sundial’s assortment — Essenz and CoolBe. The sunglasses have the following characteristics: Essenz CoolBe Selling price per unit $160 $160 Variable cost per unit $60 $80 Expected units sold per year 60,000 40,000 The total fixed costs per year for the company are $2,208,000. What is the anticipated level of profits for the expected sales volumes? Assuming that the product mix is the same at the break-even point, compute the break-even point. If the product sales…
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $14.50. A. What are the standard hours per chest? Standard hour per chest fill in the blank 1 hours B. What is the standard cost per chest for labor? Round your answer to two decimal places. Standard cost per chest $fill in the blank 2