Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Other costs: Number of bikes assembled Coaster 765 Traveler Total 465 1,230 Materials cost per bike $ 634 $ 1,255 Direct labor $ 303,000 392,000 254,000 344,000 Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Material cost Operation cost Total cost Unit cost Coaster Traveler $ EA EA $ Total 0 0

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Other costs: Number of bikes assembled Coaster 765 Traveler Total 465 1,230 Materials cost per bike $ 634 $ 1,255 Direct labor $ 303,000 392,000 254,000 344,000 Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Material cost Operation cost Total cost Unit cost Coaster Traveler $ EA EA $ Total 0 0

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 8P: Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The...

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Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Total cost Unit cost Coaster 750 $634 Coaster Traveler 450 $ 1,210 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $ 309,000 392,000 257,000 350,000 Total
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Coaster 750 Traveler 450 Total 1,200 $ 627 $ 1,203 $ 300,600 383,600 248,600 341,600 Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Coaster 750 Traveler 450 Total 1,200 Materials cost per bike Other costs: $ 638 $ 1,214 $ 313,800 396,800 261,800 354,800 Direct labor Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total $ 0
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease. Supervision and control Factory administration Material cost Operation cost Total cost Unit cost Coaster 770 $ 638 Coaster Traveler 470 $ 1,280 Traveler Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Total S $ 1,240 $ 305,000 396,000 257,000 346,000 Total 0 0
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration. Operation cost Materials cost Total cost Unit cost Coaster Coaster Traveler 750 450 $636 $ 1,212 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. 477,000 Traveler 545,400 Total 1,200 $ 311,400 394,400 259,400 352,400 $ Total
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike Other costs: Direct labor Depreciation and lease Supervision and control Factory administration Required: Coaster 850 Traveler 550 Total 1,400 $ 702 $ 1,680 $ 337,000 460,000 305,000 378,000 Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Coaster Traveler Total Material cost $ Operation cost Total cost $ 796,500 $ 470,250 1,266,750 $ 477,900 $ 1,274,400 541,350 $ 1,011,600 1,019,250 Unit cost…
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials Direct labor Variable overhead Fixed overhead Total Trailblazers' offer Materials $28 110 Total costs 19 Trailblazers has offered to sell the assembly to Mobility for $164 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,550. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) 38…
Cooper Corporation makes bicycles. For many years, Cooper has made the rear wheel assembly for its bicycles. Recently, Rojas Company offered to sell these rear wheel assemblies to Cooper. If Cooper makes the assembly, its cost per rear wheel assembly is as follows: Direct materials $8.00 Direct labor 15.00 Variable manufacturing overhead 8.00 Fixed manufacturing overhead, avoidable 6.00 Fixed manufacturing overhead, unavoidable (allocated on the basis of labor-hours) 8.00 Unit product cost $45.00 These costs are based on an annual production of 40,000 units. Rojas offered to sell the assembly to Cooper for $32.00 each. The total order would amount to 40,000 rear wheel assemblies per year, which Cooper’s management will buy instead of making if the company can save at least $100,000 per year. Required: a) Should Cooper make rear wheel assemblies or buy them from Rojas? Show computations.
Reinhart Corporation makes bicycles. For many years, Reinhart has made the rear wheel assembly for its bicycles. Recently, Bennett Company offered to sell these rear wheel assemblies to Reinhart. If Reinhart makes the assembly, its cost per rear wheel assembly is as follows: Direct materials $10.00 Direct labor 18.00 Variable manufacturing overhead 10.00 Fixed manufacturing overhead, avoidable 8.00 Fixed manufacturing overhead, unavoidable (allocated on the basis of labor-hours) 10.00 Unit product cost $56.00 These…
Vaughn, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total 5 8 $24 Saran Company has contacted Vaughn with an offer to sell it 6400 wickets for $18 each. Of Vaughn's $8 per unit fixed cost. $5 per unit is unavoidable. Should Vaughn make or buy the wickets and why? O Make because the cost savings is $12800 ◇ Buy because the cost savings is $6400 ○ Buy because the cost savings is $19200 ○ Make because the cost savings is $6400
Sheridan, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total 7 9 $27 Saran Company has contacted Sheridan with an offer to sell it 5400 wickets for $21 each. Of Sheridan's $9 per unit fixed cost, $5 per unit is unavoidable. Should Sheridan make or buy the wickets and why? O Make because the cost savings is $16200 O Make because the cost savings is $5400 O Buy because the cost savings is $10800 O Buy because the cost savings is $5400
Marigold, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total $24 Saran Company has contacted Marigold with an offer to sell it 5500 of the wickets for $18 each. If Marigold makes the wickets, variable costs $5 per unit is unavoidable. Should Marigold make or buy the wickets? Make; savings - $11000 Buy; savings - $16s00 Make; savings = $5500 Buy; savings = $5500