Finch Company makes fine jewelry that it sells to department stores throughout the United States. Finch is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet ABracelet B Cost of materials per unit $ 28 $ 34 Cost of labor per unit 44 44 Advertising cost per year 9,400 7,900 Annual depreciation on 5,700 5,400 existing equipment Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. Complete this question by entering your answers in the tabs below. Required Required Required A B C Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoidable Costs Bracelet Bracelet A B < Required B Required C >
Finch Company makes fine jewelry that it sells to department stores throughout the United States. Finch is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet ABracelet B Cost of materials per unit $ 28 $ 34 Cost of labor per unit 44 44 Advertising cost per year 9,400 7,900 Annual depreciation on 5,700 5,400 existing equipment Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product. Complete this question by entering your answers in the tabs below. Required Required Required A B C Identify the avoidable costs and determine the amount of avoidable cost for each product. Avoidable Costs Bracelet Bracelet A B < Required B Required C >
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
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Question
![Finch Company makes fine jewelry that it sells to department stores throughout the United States. Finch is trying to
decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow.
Bracelet ABracelet B
Cost of materials per unit
$
28
$ 34
Cost of labor per unit
44
44
Advertising cost per year
9,400
7,900
Annual depreciation on
5,700
5,400
existing equipment
Required
a. Identify the fixed costs and determine the amount of fixed cost for each product.
b. Identify the variable costs and determine the amount of variable cost per unit for each product.
c. Identify the avoidable costs and determine the amount of avoidable cost for each product.
Complete this question by entering your answers in the tabs below.
Required Required Required
A
B
C
Identify the avoidable costs and determine the amount of avoidable cost for each product.
Avoidable Costs
Bracelet Bracelet
A
B
< Required B
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e4d3bcd-1bd0-47a6-8cb7-2b7e7610d9d5%2F76428a29-647c-41d1-943e-caef4ef128cf%2Fnxo59l_processed.png&w=3840&q=75)
Transcribed Image Text:Finch Company makes fine jewelry that it sells to department stores throughout the United States. Finch is trying to
decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow.
Bracelet ABracelet B
Cost of materials per unit
$
28
$ 34
Cost of labor per unit
44
44
Advertising cost per year
9,400
7,900
Annual depreciation on
5,700
5,400
existing equipment
Required
a. Identify the fixed costs and determine the amount of fixed cost for each product.
b. Identify the variable costs and determine the amount of variable cost per unit for each product.
c. Identify the avoidable costs and determine the amount of avoidable cost for each product.
Complete this question by entering your answers in the tabs below.
Required Required Required
A
B
C
Identify the avoidable costs and determine the amount of avoidable cost for each product.
Avoidable Costs
Bracelet Bracelet
A
B
< Required B
Required C >
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