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.
1. I want to know how to solve these 2 questions and what the answers are 1. Solar industries has a debt-to-equity ratio of 1.25. Its WACC is 7.8%, and its cost of debt is 4.7%. The corporate tax rate is 21%.
a. What is the company’s cost of equity capital?b. What is the company’s unlevered cost of equity capital?c. What would be the cost of equity if the D/E ratio were 2? What if it were 1?
2. Therap software company is trying to determine its optimal capital structure. The company’s current capital structure consists of 35% debt and 65% common equity; however, the treasurer believes that the firm should use more debt. Currently, the company’s cost of equity capital is 9%, which is determined by CAPM. What would be Therap’s estimated cost of equity capital if they change their capital structure to 50% debt? Risk-free rate is 3%, market index returns 11%, and the Therap’s tax rate is 25%.
Compute the company's gross profit percentage for this financial accounting question
Chapter 11 Solutions
Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
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