Yang Manufacturing, which uses the high-low method, makes a product called Yin. Thecompany incurs three different cost types (A, B, and C) and has a relevant range ofoperation between 2,500 units and 10,000 units per month. Per-unit costs at twodifferent activity levels for each cost type are presented below.5,000 units7,500 unitsТуре А$4Туре В$9$6Туре С$4Total$17$4$3$13If Yang produces 10,000 units, the total cost would be:Select one:O a. $90,000.b. $100,000.O c. $110,000.O d. $125,000.O e. None of the other answers is correct.Clear my choiceThe following data relate to the Lisle Company for May and August of the current year:MayAugustMacBook Air

Name: Yang Manufacturing, which uses the high-low method, makes a product c
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Yang Manufacturing, which uses the high-low method, makes a product called Yin. Thecompany incurs three different cost types (A, B, and C) and has a relevant range ofoperation between 2,500 units and 10,000 units per month. Per-unit costs at twodiff

The High-low method is a method to determine the variable and fixed costs components in total costs…

Business

Accounting

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. 5,000 units 7,500 units Туре А $4 $4 Туре В $9 $6 Туре С $4 Total $17 $3 $13 If Yang produces 10,000 units, the total cost would be: Select one: Oa. $90,000. O b. $100,000. Oc. $110,000. Od. $125,000. O e. None of the other answers is correct. Clear my choice

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. 5,000 units 7,500 units Туре А $4 $4 Туре В $9 $6 Туре С $4 Total $17 $3 $13 If Yang produces 10,000 units, the total cost would be: Select one: Oa. $90,000. O b. $100,000. Oc. $110,000. Od. $125,000. O e. None of the other answers is correct. Clear my choice

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

Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 25 $ 10 Direct labor 22 21 Variable manufacturing overhead 17 7 Traceable fixed manufacturing overhead 18 20 Variable selling expenses 14 10 Common fixed expenses 17 12 Total cost per unit $ 113 $ 80 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 13. Assume that Cane’s customers would buy a maximum of 82,000 units of Alpha and 62,000 units of Beta. Also assume that the raw material available for production is limited to 162,000 pounds. How many…
David Manufacturing, which uses the high-low method for estimating cost function, makes a product called Kwan. The company incurs three different manufacturing cost types (A, B, and C) and has a relevant range of operation between 4,000 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $7 $12.60 $4 $23.60 7,500 units $7 $8.40 $3 $18.40 Required: a) Classify each of the costs (A, B, and C) as either fixed or variable or semi-variable b) Write down a linear cost function that expresses the behavior of Shum's total manufacturing cost as a function of # of units produced. c) If Shum produces 10,000 units, what would be the total cost of manufacturing? d) If all fixed costs (or fixed components of costs) decrease by 10% and all variable costs (or variable components of costs) decrease by 10%, what would be the total cost of manufacturing for an activity level of production of 8,000…
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 19,500 units follow. The company targets a 10.0% markup on total cost. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 119 44 39 8 1. Total cost per unit 2. Markup per unit 3. Selling price per unit $ 480,000 456,000 1. Compute the total cost per unit if 19,500 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.)
Cane Company manufactures two products called Alpha and Beta that sell for $190 and $155, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 122,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Alpha Beta Direct materials $ 40 $ 24 Direct labor 34 28 Variable manufacturing overhead 21 19 Traceable fixed manufacturing overhead 29 32 Variable selling expenses 26 22 Common fixed expenses 29 24 Total cost per unit $ 179 $ 149 The company’s traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 15. Assume Cane’s customers would buy a maximum of 94,000 units of Alpha and 74,000 units of Beta. Also assume the company’s raw material available for production is limited to 228,000 pounds. If Cane uses its 228,000…
Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 10 Direct labor 25 20 Variable manufacturing overhead 12 10 Traceable fixed manufacturing overhead 21 23 Variable selling expenses 17 13 Common fixed expenses 20 15 Total cost per unit $ 125 $ 91 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 1. Assume that Cane expects to produce and sell 55,000 Alphas during the current year. A supplier has offered to manufacture and deliver 55,000 Alphas to Cane for a price of $100 per unit. What is the financial…
University Company produces and sells four products; A, B, C and D. The following data relate to its four products: A B C D Daily demand in units 90 50 80 70 Selling price per unit $80 $110 $120 $100 Direct Material per unit $15 $35 $30 $25 Direct labor per unit 18 25 20 30 Fixed cost per unit 20 10 18 28 Other variable costs per unit Labor time in minutes 10 15 12 per unit There are a total of 2,700 minutes available per day. University Company uses the traditional method for scarce resource maximization. Problem 2.3 How many units of product C should be produced each day? 20
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)
Cane Company manufactures two products called Alpha and Beta that sell for $175 and $135, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha $ 40 30 18 26 23 26 $ 163 Beta $15 30 16 29 19 21 $ 130 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Maximum price to be paid per pound 15. Assume that Cane's customers would buy a maximum of 91,000 units of Alpha and 71,000 units of Beta. Also assume that the company's raw material available for production is limited to 225,000…
Edge Company produces two models of its product with the same machine. The machine has a capacity of 154 hours per month. The following information is available. Selling price per unit Variable costs per unit Contribution margin per unit Machine hours per unit Maximum unit sales per month Required: Contribution margin per unit 노래 Contribution margin per machine hour Standard Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $ 140 55 1. Determine the contribution margin per machine hour for each model. Product Contribution Margin Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin $85 1 hour 500 units Deluxe $ 170 102 $ 68 2 hours 200 units Standard 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe…
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.50 $ 4.00 $ 1.60 $ 4.00 $ 3.50 $ 2.20 $ 1.20 $ 0.45 12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) Total manufacturing overhead cost Manufacturing overhead per unit
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 2.50 Fixed administrative expense $ 2.00 Sales commissions $ 1.00 Variable administrative expense $ 0.50 13. If the selling price is $21.50 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 24 $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $ 133 $ 107 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? what is the alpha and beta