### Total Cost of Producing 18,000 Monitors| Cost Component | Total Cost | Unit Cost ||---------------------------------------|-------------|-----------|| **Direct materials** | $2,160,000 | $120 || **Direct labor** | $1,224,000 | $68 || **Variable factory overhead** | $630,000 | $35 || **Fixed manufacturing overhead** | $504,000 | $28 || **Fixed non-manufacturing overhead** | $756,000 | $42 || **Total** | $5,274,000 | $293 |You are asked to review the intern's estimate before presenting the information to management. The company's controller believes there may be inaccuracies due to costs that should not be included. Specifically, the current labor force will be terminated with no associated costs and all materials need to be sourced from suppliers. Variable manufacturing overhead costs will decrease by $55,000, while non-manufacturing costs remain unchanged.#### Make or Buy Decisions**Differential Analysis Report**- **Purchase price of 18,000 monitors:** $3,816,000#### Differential Cost to Make:- **Direct materials:** $2,160,000- **Direct labor:** $1,224,000- **Overhead:** (not specified)- **Differential income (loss) from making monitors:** (not specified)> **Note:** The overhead cost and differential income (loss) fields are incomplete and require further input or calculation.

Avoidable costs are those costs which can be avoided if a particular product line is not continued.…

Answered: Total cost of producing 18,000 monitors…

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

NSTSYN867 Company has a Components Division which produces parts for product divisions within the company as well as for outside manufacturers. The company's Business Products Division has asked the Components Division to provide it with a new part, A15. Production data related to A15 are as follows: Units needed by Business Products Division Variable production cost Allocated fixed production cost Unfortunately, producing the new part requires the same production team within the Components Division that manufactures another part, X32, for outside customers. Data related to the production and sale of X32 to outside customers are below: Units currently produced & sold 100,000 units Selling price Variable production cost Variable selling cost Allocated fixed production cost 20,000 units $31 per unit $3.50 per unit per unit $70.00 per unit $52.00 per unit $8.00 per unit $2.00 per unit Q. If the NSTSYN867's Components Division must reduce the production of X32 by 18% in order to produce…
Subject: acounting
Williams manufactures a variety of iron products, made to customer specifications, in small batches. Willie Williams, owner, is concerned that he does not have an accurate understanding of the costs of production. You, a newly-minted MBA, have researched his business and identified various costs and cost drivers. Janitorial Welding HR Data Assembly Total Svcs Own costs $12,000 $90,000 $37,200 32,400 $54,000 $225,600 Sqaure feet 500 3,000 1,500 2,000 4,500 11,500 #employees 7 25 8 10 75 125 #transactions 30 100 180 600 140 1,050 (thou) Power usage 22 730 11 17 220 1,000 The service departments (Janitorial, HR, and Data Services) are allocated to the two production departments (Welding and Assembly). Janitorial costs are allocated using square feet, HR using number of employees, and Data Services using number of transactions. You recall that there are several approaches to the allocation of service department costs: direct, step-down and reciprocal methods. If the reclprocal method Is…
Please do not give solution in image format thanku
AIP 10.7 Overhead Costs from a New Factory Karsten is one of the premier carpet manufacturers in the world. It manufactures carpeting for both residential and commercial applications. Home sales and commercial sales each account for about 50 percent of total revenues. The firm is organized into three departments: Manu facturing, Residential Sales, and Commercial Sales. Manufacturing is a cost center and the two sales departments are profit centers. The full cost of each roll of carpeting produced (including fully absorbed overhead) is transferred to the sales department ordering the carpet. The evaluation of the sales departments includes the fully absorbed cost of each roll as the transfer price. The current manufacturing plant is operating at capacity. A new plant is being built that will more than double capacity. Within two years, management believes that its businesses will grow such that most of the excess capacity will be eliminated. When the new plant comes online, the plan is…
Please do not give solution in image format
answer with full solution pls.. a down vote will be given if answers are not your own and original and copied from others.
Please do not give solution in image format thanku
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
need help with this question
Please do not give solution in image format thanku
Assuming the current ratio equals 2, which of the following would cause the current ratio to increase? O Accrual for payroll. Declaration of cash dividend. O Payment for inventory purchased on account. O Inventory purchased on account.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS