XAE-2 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided: Activity Usage Measures Units produced annually Model MX10 Model DX20 Total 15,000 40,000 55,000 Prime costs $40,000 $100,000 $140,000 Machine hours 40,000 60,000 100,000 Production runs 14 20 Direct labor hours 20,000 30,000 50,000 The company primarily has three major activities as follows in the production process:
Q: I keep getting this question wrong and trying to see how to work it
A: Production costs are such cost of a company which the company must be incurred for the manufacturing…
Q: ragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed…
A: Breakeven Sales = Fixed costWeighted contribution per unit Weighted contribution per unit:-…
Q: es Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer…
A: Absorption costing method is a method of costing in which product cost is calculated by adding…
Q: ble on this month's operations in the Computer Chip Division: Selling price per chip $50 Variable…
A: Given Current Purchase Price of the computer Division = $ 45 Per Chip Number of chips purchased in…
Q: ll Terr
A: These are the costs that do change along with the level of production during a period. These are…
Q: Laser Cast Inc. manufactures color laser printers. Model J20 presently sells for $700 and has a…
A: The target cost serves as a benchmark for the product development process. It guides the company's…
Q: Fruit Fusions Incorporated (FFI) manufactures industrial cold press machines for the food service…
A: Make or buy analysis is the process to determine whether a component should be purchased from an…
Q: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99…
A: Overhead is the sum of all indirect product cost that is incurred while producing an item. Since…
Q: ign sells 1,050,000 units each year at a price of $10 per unit and a contribution margin of 40%.…
A: 1 CAD design improvement 150000 2 improve machine calibration to meet specifications 137500…
Q: Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp…
A: In order to determine the Breakeven point in dollars, the fixed cost are required to be divided by…
Q: a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How…
A: Table indicating the weights assigned to each product: Resultant table as follows:
Q: Northwood Company manufactures basketballs. The company has a standard ball that sells for P25. At…
A: The contribution margin shows the leftover revenue available after deducting variable costs to cover…
Q: C-Cubed makes bikes. It's standard bike is called the Speed Racer. C-Cubed's relevant range of…
A: Absorption costing includes all the cost incurred for production that is variable cost as well as…
Q: C-Cubed's relevant range of production for its standard bike, the Speed Racer, is 300 to 400 units.…
A: Total variable cost per unit = Direct material + direct labor + variable manufacturing overhead +…
Q: Calculate the labour productivity for both processes. Calculate the multifactor productivity for…
A: Productivity is a mathematical relationship between output produced by a firm through employment of…
Q: What is the contribution margin per machine hour for food processors?
A: Contribution margin: It is the margin-left after the sales revenue covers the variable expenses.…
Q: Units sold Unit selling price Unit variable costs Unit fixed costs C 9,000 $94 49 20 D 19,800 $75 41…
A: The entity may produce more than one product. The company generally opts for products that offer…
Q: Gupta Company manufactures miniature speakers that are built into the headrests of high-end lounge…
A: Activity-based costing (ABC) is an accounting method that assigns costs to products or services…
Q: Starcic Products, Incorporated, has a Connector Division that manufactures and sells a number of…
A: The lowest transfer may be as low as the variable production cost or cost of sales. Sometimes the…
Q: Muscat Inc. has been manufacturing its own Camera for its Mobile Phone. The company is currently…
A: When business has alternatives of both make or buy, means business can manufacture the product or it…
Q: Malone Manufacturing p
A: Contribution margin is the difference between Sales Price and Variable Cost of the…
Q: Tharp Company operated a small factory in which it manufactures two products: C and D Production and…
A: Current Product Mix (C and D):Total units sold: C = 9,000, D = 20,000Selling price per unit: C =…
Q: How would overall corporate profits be affected if it sells 4,000 units to the Computer Division at…
A: The overall profit is the profit which a company earns from a period when all the profits and losses…
Q: The Nikki Beat Company operates a small factory in which it manufactures two products, AG and BD.…
A: Here in this question, we are required to make financial analysis of whether new product should…
Q: Alpena Corporation manufactures smartphone and tablet cases. The following is the cost of each unit.…
A: In considering whether to accept or decline special orders, companies assess the possible advantages…
Q: Based on the sales mix of 80% Large doors and 20% Small doors, calculate the total number of units…
A: Solution 5.3: Computation of weighted average contribution margin per unit Particulars Small…
Q: MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead…
A: activity based costing Identifies the activities that consume resources and assign costs to those…
Q: A company is looking to launch a new product line, which requires new facilities to be used and at…
A: Costing is defined as a process in which the detailed information is gathered related to the costs…
Q: Mierlo-Hout manufactures two types of video cameras, RC1 and RC2. The costs for the products are…
A: Contribution Margin per unit=Unit sales price-Variable Cost Per Unit
Q: Starcic Products, Incorporated, has a Connector Division that manufactures and sells a number of…
A: The lowest transfer may be as low as the variable production cost or cost of sales. Sometimes the…
Q: Gerin Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two…
A: The break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Please answer all of these fallowing questions
A: Alpha (116000 units)Beta (116000 units)totalper unittotalper unitSales revenue…
Q: Mesa Telcom has three divisions, commercial, retail, and consumer, that share the common costs of…
A: W.note - 01 Calculation of Total No Connection Overhead Commercial 60,000.00…
Q: Sunland has the following production information available regarding its lawn mowers: Unit…
A: For costing purposes, whenever a scarce resource or a limited factor is given in the production…
Q: Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current…
A: MAKE OR BUY DECISION The make-or-buy decision is choosing between manufacturing a product within a…
Q: Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the…
A: The main objective of a business entity is to maximise its profit.Sometimes, there is a shortage of…
Q: Creative Cabinets projects an annual demand of 18,000 units for the maxistand. The maxistand will…
A: BEP is that point of sales at which total profit from the operations is zero BEP= Total Fixed cost/…
Q: Filhaal Electronics LLC also plans to introduce a new model of mobile phone in the market. The…
A: The life cycle cost is the entire cost incurred on a product over its useful life. All costs are…
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: The differential analysis is performed to compare the two alternatives available to manufacture the…
Q: A company is looking to launch a new product line, which requires new facilities to be used and at…
A: Absorption costing demonstrates that all the expenses related to manufacturing a product are…
Q: Whiteside Corporation manufactures a variety of appliances which all use Part B89. Currently,…
A: It is the process of making decisions that involve the management of costs in order to achieve…
Step by step
Solved in 2 steps
- Neely Systems Corporation manufactures and sells various high-tech office automation products. Two divisions of Neely Systems Corporation are the Computer Chip Division and the Computer Division. The Computer Chip Division manufactures one product, a "super chip," that can be used by both the Computer Division and other external customers. The following information is available on this month's operations in the Computer Chip Division: Selling price per chip $50 Variable costs per chip $20 Fixed production costs $60,000 Fixed SG&A costs $90,000 Monthly capacity 10,000 chips External sales 6,000 chips Internal sales 0 chips Presently, the Computer Division purchases no chips from the Computer Chips Division, but instead pays $45 to an external supplier for the 4,000 chips it needs each month. Refer to Neely Systems Corporation. Two possible transfer prices (for 4,000 units) are under consideration by the two divisions: $35 and $40. Corporate profits would…Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows:Cost Driver Dollar Amount per UnitDirect materials $15Direct labor 20Factory overhead (25% of direct labor) 5Total cost per unit 40If Fremont 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 5% of the direct labor costs. a. Prepare a differential analysis dated September 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. b. Based on the data presented, would it be advisable to make the carrying cases or to continue buying them? Explain in your own words.Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Giada Company produces 14,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.16. The unit cost is: Direct materials $0.73 Direct labor 0.28 Variable overhead 0.07 Fixed overhead 2.00 Total unit cost $3.08 Required: 1. What are the alternatives for Giada Company? 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. List the relevant cost(s) of external purchase. 3. Which alternative is more cost effective and by how much? by $fill in the blank 5 4. What if $21,960 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? by $fill in the blank 7
- Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.39. The unit cost is: Direct materials $0.83 Direct labor 0.34 Variable overhead 0.13 Fixed overhead 2.55 Total unit cost $3.85 1. What are the alternatives for Giada Company? a. Make the part in house b.Buy the part externally c.Make the part in house or buy the part externally d.None 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. a.Direct materials, direct labor and variable and fixed overhead b.Direct materials, direct labor and variable overhead c.Direct materials, direct labor and fixed overhead d.None List the relevant cost(s) of external purchase. a.Purchase price b.Sales price c.Material price d.None 3. Which alternative is more cost effective and by how much? a. Making the part in house b. Buying the part from the external supplier by $___________ 4. What if…2MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 10,000 units of M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the following revenues and costs: MTI Income Statement M3100 M4 100 M6100 Total Sales revenue. Direct costs Direct materials .. Direct labor $9,000,000 $15,000,000 $13,500,000 $37,500,000 3,000,000 600,000 4,500,000 900,000 3,300,000 10,800,000 1,800,000 3,300,000 Variable overhead Setting up machines. Processing sales orders... Warehousing ..... Operating machines Shipping .. Contribution margin. Plant administration 2,400,000 1,800,000 2,400,000 1,200,000 900,000 $14,700,000 Gross profit..... 6,000,000 $ 8,700,000 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following: Activity Cost Driver M3100 M4100 M6100 Setting up machines....…
- Laser Cast Inc. manufactures color laser printers. Model J20 presently sells for $325 and has a product cost of $260, as follows: Line Item Description Amount Direct materials $190 Direct labor 50 Factory overhead 20 Total $260 It is estimated that the competitive selling price for color laser printers of this type will drop to $310 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas: 1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $7 per unit.3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection…Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $38, 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break - even vases fill in the blank 1 units Break - even figurines fill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5, 280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break -…Woodruff Company is currently producing a snowmobile that uses five specialized parts. Engineering has proposed replacing these specialized parts with commodity parts, which will cost less and can be purchased in larger order quantities. Current activity capacity and demand (with specialized parts required) and expected activity demand (with only commodity parts required) are provided. Activities Activity Driver ActivityCapacity Current ActivityDemand Expected ActivityDemand Material usage Number of parts 200,000 200,000 200,000 Installing parts Direct labor hours 20,000 20,000 16,000 Purchasing parts Number of orders 7,600 6,498 3,990 Additionally, the following activity cost data are provided: Material usage: $11 per specialized part used; $27 per commodity part; no fixed activity cost. Installing parts: $21 per direct labor hour; no fixed activity cost. Purchasing parts: Four salaried clerks, each earning a $47,000 annual salary; each clerk is capable of processing 1,900…
- 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.Vikram bhaiPina Colada Racers makes bicycles. It has always purchased its bicycle tires from the Ivanhoe Tires at $25 each but is currently considering making the tires in its own factory. The estimated costs per unit of making the tires are as follows: Direct materials Direct labor Variable manufacturing overhead Total relevant cost $8 $4 The company's fixed expenses would increase by $63,000 per year if managers decided to make the tire. (a1) Calculate total relevant cost to make or buy if the company needs 10,300 tires a year. Make $7 $ Buy