Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both model are produced on a single machine. The price and costs of the two models are Price per unit Variable cost per unit Machine minutes per unit Sport $ 195 $72 6 Collegiate $380 $152 15 The one machine that is used to produce both models has a capacity of 29,700 machine-minutes per quarter. Fixed manufacturing costs per quarter are $355,000. Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each
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- Adams Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Adams produces and sells only 6,200 bikes each year. Due to the low volume of activity, Adams is unable to obtain the economies of scale that larger producers achieve. For example, Adams could buy the handlebars for $30 each; they cost $33 each to make. The following is a detailed breakdown of current production costs. Item Unit-level costs Materials Labor Overhead Allocated facility-level costs Total Unit Cost $15 9 2 7 $33 Total $ 93,000 55,800 12,400 43,400 $204,600 After seeing these figures, Adams's president remarked that it would be foolish for the company to continue to produce the handlebars at $33 each when it can buy them for $30 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Answer is complete but not entirely correct. Per Unit TotalReuben's Deli currently makes rolls for deli sandwiches it produces. It uses 31,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: Materials $0.24 per roll Labor 0.39 per roll Variable overhead 0.16 per roll Fixed overhead 0.20 per roll A potential supplier has offered to sell Reuben the rolls for $0.89 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? decline in profit if he buys the rolls. Reuben would see a $Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: $0.27 0.51 0.69 0.18 Compute the number of pans that must be sold for Werner to break even. pans Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? Unit variable cost ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?
- Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit Required A Required B TI-12 Model TI-28 Model TI-12 $ 80 23 29 8 $ 20 units units 0.1Companion Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $58 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 44% of direct labor cost. The total unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $28.00 Direct labor 17.00 Factory overhead (44% of direct labor) 7.48 Total cost per unit $52.48 If Companion Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 15% of the direct labor costs. a. Prepare a differential analysis dated February 24 to determine whether the company should Make Carrying Case (Alternative 1) or Buy Carrying Case (Alternative 2). If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you…Surf Company can sell all of the two surfboard models it produces, but it has only 416 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $216 for Glide and $332 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Glide Ultra Contribution margin per direct labor hour $ $
- Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet). Standard costs and quantities to produce one bag of sandblasting media are as follows: Quantity Cost Quartz-sand 20 kg $4.00 Cullet 5 kg $3.00 80,000 bags of sandblasting media were produced. Actual purchases and inventories were: Beginning Ending Purchases Purchases Inventory Inventory (in kg) ( in $) Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161 Cullet 0 kg 120,000 kg 550,000 kg $286,000 Required: Calculate the following variances: a)Total direct material efficiency variance. b)Total direct material mix variance.…Christine's Chronographs makes two models of a high-end watch-the model 94 and the model 101. Both models go through a special polishing step that requires the use of the single polishing machine at the company. The price and costs of the two models appear as follows. Price per watch Variable cost per watch Polishing hours per watch The polishing machine used for both models has a capacity of 48,000 hours annually. Fixed manufacturing costs are $8,200,000 annually. Required: a. Suppose that the maximum annual unit sales that Christine's can achieve is 18,000 units of the Model 94 and 17,000 of the Model 101. How many units of each watch model should Christine's produce annually? b. Suppose that the maximum annual unit sales that Christine's achieve make is 16,000 units of the Model 94 and 13,000 of the Model 101. How many units of each watch model should Christine's produce annually? Model 94 Model 101 $4,300 $10,500 $ 6,600 $2,200 2 3 Complete this question by entering your answers in…Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are Price per unit Variable cost per unit Machine minutes per unit The one machine that is used to produce both models has a capacity of 32,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $395,000. Sport $ 235 $88 6 Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter? Required A Required B Collegiate $ 420 $ 168 15 Complete this question by entering your answers in the tabs below. Sport Model Collegiate Model Suppose that the maximum unit sales in a quarter that WSG can achieve is…
- The Svenson corporation manufactures cell phones. It manufactures its own circuit boards for cell phones, an important part for the cell phone.The unit variable cost of raw materials is $180The variable unit labor cost is $65.The unit variable cost of indirect costs is $13Fixed costs are $6,000The number of parts it manufactures is 700 cell phones in a month.Morly, an electrical parts supplier, offers to sell you the board for $210 plus freight of $8 per unit.• Determine whether it is best for you to continue manufacturing the part or purchase it from the supplier.• Calculate the profit or loss you would have if you accepted the supplier's proposal.Surf Company can sell all of the two surfboard models it produces, but it has only 400 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $200 for Glide and $300 for Ultra. (e) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Required A Required B Compute the contribution margin per direct labor hour for each product. Contribution margin per direct labor hour Glide Ultra Required B > DCampbell Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high- quality racing bikes with limited sales. Campbell produces and sells only 7,700 bikes each year. Due to the low volume of activity, Campbell is unable to obtain the economies of scale that larger producers achieve. For example, Campbell could buy the handlebars for $33 each; they cost $36 each to make. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unit-level costs $13 $100, 100 92,400 23,100 61,600 Materials Labor 12 Overhead Allocated facility-level costs 8 Total $36 $277,200 After seeing these figures, Campbell's president remarked that it would be foolish for the company to continue to produce the handlebars at $36 each when it can buy them for $33 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Per Unit Total Total relevant cost Do you agree with the president's…