Acme Metal Jobshop is in the process of purchasing a multipurpose drill press. Two models, A and B, are available with hourly operating costs of $20 and $35, respectively. Model A is slower than model B.Queuing analysis of similar machines shows that when A is used, the average number of jobs in the queue is 4, which is 30% higher than the queue size in B. A delayed job represents lost income, which is estimated by Acme at $10 per waiting job per hour. Which model should Acme purchase?
Q: t the end of the month, you find that the labor and materials spent on manufacturing collars was…
A: Variances are calculated by comparing the standard set with the actual performance of the company.
Q: Owen Conner works part-time packaging software for a local distribution company in Indiana. The…
A: Total variable cost per unit = Direct labor + Direct material = 3.50 + 4.50…
Q: Chaffee Corporation staffs a helpline to answer questions from customers. The costs of operating the…
A: Variable costs are those costs which changes directly with change in level of activity.
Q: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department.…
A: In the given question question, the cost benefit analysis will be done to calculate the impact on…
Q: Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: In decision making, lower costs are preferred as in this case, making is cost-efficient. Fixed costs…
Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…
A: Solution a: A differential analysis is based on comparing the relevant cost of making the product…
Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…
A:
Q: Mighty Muffler, Inc., operates an automobile service facility that specializes in replacing mufflers…
A: It is pertinent to note that fixed costs are costs that remain constant irrespective of the level of…
Q: Steve Hausmann, a production engineer at Euro Fashion-USA, a European-style furniture company, was…
A: The current truck is completely depreciated but has a market value of $7,500 in the market
Q: Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: A manufacturer occasionally needs a component in the manufacture of certain products. Its cost per…
A: 1. Economical quantity method to order = 2*annual demand*ordering cost/carrying cost 2. Fixed…
Q: An industrial company has (20) machines, and every malfunction that costs the company 180 dinars to…
A: Each delay for one working day costs the company 8000 dinars 0.10 of the working time for each…
Q: he Haven Machine Company makes 40,000 screws to be used in the production of its washing machines.…
A: In this question, we have to compute that the company should buy or make the product.
Q: Micron Manufacturing produces electronic equipment. This year, it produced 7,500 oscilloscopes at a…
A:
Q: Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The…
A: Economic order quantity (EOQ) can be defined as the ideal order quantity that the company should…
Q: A company is considering a special order for 1,000 units to be priced at $8.90 (the normal…
A: Relevant costs and Relevant revenues of the special order are the costs that are to be incurred for…
Q: the total costs if the manufacturer decides to use: The economical quantity method
A: Given, Demand= 0+40+20+100+20+0+20+80= 280 Ordering cost= $125 Carrying cost= $1.65 per week…
Q: Owen Connor works part-time packaging software for a local distribution company in Indiana The…
A: The break-even point is that level of sales at which the operating income (EBIT) becomes zero. In…
Q: Suppose a quality manager is to make a decision between two manufacturing processes for the…
A: The expected cost is the cost that a manufacturer is expected to spend on producing a single unit of…
Q: Big Company manufactures electric drills to the exact specifications of various customers. During…
A: Job costing is a method of costing in which all costs are assigned and calculated on the basis of…
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: The question is related to limiting factor. In the given question machine hours is limiting factor.…
Q: Sanchez Trucking has been experiencing delays at its warehouse operations. Management hired a…
A: 1. total hours per crew = no of members in a crew x full time hours per member 2. required crews =…
Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…
A: Differential analysis: Differential analysis refers to the analysis of differential revenue that…
Q: How do i calculate the net income for a special order? For example: Blowing Sand Company has just…
A: Special orders decisions: Special orders are orders received at special prices and for bulk…
Q: At RIM, Sharpton Corporation, the engraving department is a bottleneck and the company is…
A: Relevant cost per unit = Direct material + Direct labor +Variable overhead = $2.75 + 1.00 + 0.25…
Q: uction operation is making 150 units of a product by engaging five workers for 300 hours. However,…
A: A bonus is a monetary incentive that exceeds the recipient's usual payment expectations. Bonuses may…
Q: Sports Manufacturing Company produces baseball bats. They have recently moved from handcrafted bats…
A: Overhead rate = Total estimated overhead/Estimated machine hours Overhead rate = $450,000/50,000…
Q: hafford Inc. currently manufactures 2000 subcomponents in one of its factories. The unit costs to…
A: In this question, we are required to calculate the percentage (%) of increase that Chafford Inc, can…
Q: Scootz could sell its scooters to retailers either assembled or unassembled. The cost of an…
A: Introduction: Incremental analysis is a technique for making business decisions that determines the…
Q: For numbers 6 to 8 Best Curtains, Inc. spent P350,400 including applied overhead on a job order of…
A: The sale proceeds of defective goods reduces the total cost of manufacture.
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: Variable factory overhead costs per unit = Direct labor costs x 16% Fixed factory overhead per unit…
Q: Sandhill has unused productive capacity that is expected to continue indefinitely: management has…
A:
Q: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department.…
A: Computation of the annual financial impact of hiring the extra workers as follows:
Q: After reviewing the new activity-based costing system that Nancy Chen has implemented at IVC's…
A:
Q: PIM Industries Incorporated manufactures electronics components. Each unit costs $45 before the…
A: Net Annual Savings = Savings due to rejections - Annual Operating Costs
Q: Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: Decision making is a process or an act of deciding something using rational thinking, intuition and…
Q: A manager of Burns Sporting Goods Company is considering accepting an order from an overseas…
A: Variable cost is a cost that change with activity or production volume and are recorded in inventory…
Q: Zeus Company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. Its plant…
A: Manufacturing cost consist of direct materials, direct labor and manufacturing variable overheads.
Q: What is the net effect of moving the employee from mixing/heating to cutting/assembly? What is the…
A: Net effect means the final result after taking all the effects into consideration and finally…
Q: Prepare a differential analysis dated September 30 to determine whether the company should make…
A: Solution:- a)Preparation of a differential analysis dated September 30 to determine whether the…
Q: Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: While making decision in respect of making or buying, the cost which will increase or decrease shall…
Q: If output of one of the products needs to be restricted and management want to lose as little profit…
A: The answer for the multiple choice question and relevant working are presented hereunder : When time…
Q: Companion Computer Company has been purchasing carrying cases for its portable computers at a…
A: Fixed factory overhead per unit = Direct Labor per unit x (46%-14%) = $16*(46%-14%) = $5.12
Q: Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers…
A: For 600 mufflers Fixed Costs = $ 42,000 Variable Costs = $ 30,000 Total Costs = $ 72,000
Q: Santana Rey has found that Business Solutions’s line of computer desks and chairs has become…
A: Given that: Limited direct labour hours = 1015
Q: Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a…
A: Contribution is the amount after reducing the variable costs from the sales revenue of an entity.
Q: A machine that produces a certain piece must be turned off by the operator after each piece is…
A: Net present value refers to the amount present today for an asset based on the value that will be…
Q: omerset Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: Differential analysis (also known as incremental analysis) is a management accounting technique in…
Q: SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce…
A: Operating Income - It is the amount which shows the profit realized from the business operation of…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Spaine Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Sofo Wholesale, due to large fluctuations in price. The owner of Spaine has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: (Click the icon to view the budgeted information.) (Click the icon to view additional information.) Read the requirements. Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First…Below are details of the four products made by Krane Ltd. A B C D Selling price per unit 60 80 100 120 Variable cost per unit 24 36 48 50 Machine time per unit 3 4 6.5 8 Weekly demand for all products is the same. Unfortunately, time available on the machine used to produce all four products is likely to be reduced in the coming week due to maintenance work required. If output of one of the products needs to be restricted and management want to lose as little profit as possible, which of the product line’s outputs should they restrict? Product A Product B Product C Product DVariety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
- One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells for 149. The cost of each Slam consists of: Job 100 produced 100 Slams, of which six were spoiled and classified as seconds. Seconds are sold to discount stores for 50 each. Required: 1. Under the assumption that the loss from spoilage will be distributed to all jobs produced during the current period, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units. 2. Under the assumption that the loss due to spoilage will be charged to Job 100, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units.Splunge Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Splunge has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year: E (Click the icon to view the budgeted information.) A (Click the icon to view additional information.) Read the requirements Requirement 1 and 2. Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate. First…4. For each following activity, determine the amount of value-added and non-value-added costs. a. The company keeps 7 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs are $50,000 per day. b. A time-and-motion study revealed that it should take 10 minutes to produce a product that now takes 50 minutes to produce. Labor is $18 per hour. c. Warranty work costs the firm $500,000 per year. Warranty costs for the industry average $100,000 per year.
- At RIM, Sharpton Corporation, the engraving department is a bottleneck and the company is considering hiring an extra worker whose salary will be $55,000 per year to mitigate the problem. With the extra worker, the company will be able to produce and sell 7,000 more units per year. The selling price per unit is $14. Cost per unit currently at $8 is as follows: Direct material $2.75 Direct labour 1.00 Variable overhead 0.25 Fixed overhead (depreciation of equipment) 4.00 ----------- Total $8.00 ------------…Scootz could sell its scooters to retailers either assembled or unassembled. The cost of an unassembled scooters is as follows. Direct materials $150 Direct labor 70 Variable overhead (0.70 of direct labor) 49 Fixed overhead (0.30 of direct labor) 21 Manufacturing cost per unit $290 The unassembled scooters are sold to retailers at $450 each. Scootz currently has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity can be used to assemble the scooters and sell them at $495 each. Assembling the scooters will increase direct materials by $5 per scooter, and direct labor by $10 per scooter. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the scooters. You are required to: (a) Prepare an incremental analysis for the sell-or-process-further decision. (b) Should Speedy sell unassembled or process further?Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. How much revenue do we need to take in before breaking even? What is the break-even point in units?
- A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has defective content on an average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into the product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing. (Answer in Appendix D)a. Should this inspection position be eliminated?b. What is the cost to inspect each unit?c. Is there a benefit (or loss) from the current inspection process? How much?Skilled labour at a manufacturing plant is in short supply, and all available skilled labour time is fully utilised. A customer has asked for a special job that will cost $400 in direct materials and will require 15 hours of skilled labour time. Skilled labour costs $8 per hour and variable production overhead is $2 per hour. Fixed production overheads are absorbed at a rate of $20 per skilled labour hour. If the job is undertaken the skilled labour will be withdrawn from work on making items that earn a contribution of $25 per skilled labour hour. What is the minimum price that should be charged if this special job is undertaken? O $775 O $895 $925 $1,225 OKofi Abebrese runs a small industrial company that specialized in the production of high standardwindows for housing estates. A worker is paid GH¢0.9 per hour and can produce two window swith an hour. Each window uses a frame costing GH¢1 and incur a variable overheads of GH¢0.7.Each window sells for GH¢3. Currently, due to the economic condition, work is rather slack and three employees are occupied in carrying out extensive repairs to Kofi Abebrese's own house.Kofi owns a warehouse next to the factory, which had been used as a factory store, in the past. Itis now let out on a renewable annual lease of GH¢600.A new building company, Allied Consult, which specializes in the production of prefabricatedhouses has asked Kofi if he would be interested in accepting a contract for GH¢30,000 which willbe for a year initially, to produce molded internal building sections. Kofi estimates that, thecontract will take 13,200 hours of works, or the work of five men for a year, and that…