The standard cost per batch of 10,000 bottles using the current data (before the company makes any changes) including direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit.
The standard cost per batch of 10,000 bottles using the current data (before the company makes any changes) including direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit.
Solution Summary: The author calculates the standard cost per batch of 10,000 bottles if the company makes the changes to the bottle design and production process.
Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.
Chapter 11, Problem 11.41BE
1.
To determine
To calculate: The standard cost per batch of 10,000 bottles using the current data (before the company makes any changes) including direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit.
2.
To determine
To calculate: The standard cost per batch of 10,000 bottles if the company makes the changes to the bottle design and production process so that less plastic is used including direct materials, direct labor, and variable manufacturing overhead in the standard cost per unit.
3.
To determine
To calculate: The cost savings per batch by comparing the standard cost per batch under each scenario (current versus proposed change).
To find: The number of batches of bottles which would need to be produced after the change to have the cost savings total equal the cost to make the changes.
4.
To determine
The benefits which might arise from making this change to using less plastic in the manufacture of the bottles.
Chalmers Corporation operates in multiple areas of the globe, and relatively large price changes are common. Presently, the company sells 110,200 units for $50 per unit. The variable production costs are $20, and fixed costs amount to $2,079,500. Production engineers have advised management that they expect unit labor costs to rise by 10 percent and unit materials costs to rise by 15 percent in the coming year. Of the $20 variable costs, 25 percent are from labor and 50 percent are from materials. Variable overhead costs are expected to increase by 20 percent. Sales prices cannot increase more than 12 percent. It is also expected that fixed costs will rise by 10 percent as a result of increased taxes and other miscellaneous fixed charges.
The company wishes to maintain the same level of profit in real dollar terms. It is expected that to accomplish this objective, profits must increase by 8 percent during the year.
Required:
Compute the volume in units and the dollar sales level…
After describing a threat/risk in either the revenue cycle (i.e., in sales and cash collection activities) or the expenditure cycle (i.e., in purchases or cash disbursement activities).
What are specific internal controls that might be applied to mitigate each of the threats we've identified?
Compare and contrast the procedures for lodging an objection in Jamaica with those of Trinidad and Tobago.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license