Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $706,200 for 2,140 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufacture the cell. The materials cost per unit is $66. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3.960 DVR players were assembled and placed in finished goods. 4.910 DVR players were sold for $234 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. per unit

Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $706,200 for 2,140 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufacture the cell. The materials cost per unit is $66. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3.960 DVR players were assembled and placed in finished goods. 4.910 DVR players were sold for $234 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. per unit

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 12E

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Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $716,100 for 2,170 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufactured in the cell. The materials cost per unit is $59. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 960 DVR players were assembled and placed in finished goods. 4. 910 DVR players were sold for $221 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. per unit c. Journalize the summary transactions (1)-(4) for March. If an amount box does not require an…
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $789,600 for 1,880 production hours. Each unit requires 20 minutes of cell process time. During March, 840 DVR players were manufactured in the cell. The materials cost per unit is $81. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 840 DVR players were assembled and placed in finished goods. 4. 800 DVR players were sold for $391 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. per unit c. Journalize the summary transactions (1)-(4) for March. If an amount box does not require an…
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $777,600 for 2,160 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufactured in the cell. The materials cost per unit is $84. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 960 DVR players were assembled and placed in finished goods. 910 DVR players were sold for $276 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.$fill in the blank a06528f52faffb5_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.$fill in the blank a06528f52faffb5_2 per unit c. Journalize…
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $2,976,000; materials costs, $33 per unit. Planned production included 5,952 hours to produce 18,600 motor drives. Actual production for August was 1,920 units, and motor drives shipped amounted to 1,360 units. From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August. a.$307,200 b.$309,153
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assemble. the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates t only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,120,000 and materials costs were $31 per unit. Planned production included 5,120 hours to produce 16,000 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of production From the foregoing information, determine the cell conversion cost rate. a. $2,108.11 b. $195.00 c. $1,668.45 d. $609.38
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $3,253,600 and materials costs were $34 per unit. Planned production included 5,312 hours to produce 16,600 motor drives. Actual production for August was 1,940 units, and motor drives shipped amounted to 1,480 units. Conversion costs are applied based on units of production From the foregoing information, determine the production costs transferred to Finished Goods during August. Oa. $446,200 Ob. $340,400 Oc. $382,214 Od. $184,785
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $5,620,600 and materials costs were $28 per unit. Planned production included 5,728 hours to produce 17,900 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,310 units. Conversion costs are applied based on units of production From the foregoing information, determine the amount of the conversion costs charged to Raw and In Process Inventory during August. Oa: $587,180 Ob. $589,078 Oc. $235,854 Od. $175,840
XYZ Corporation manufactures and sells electronic gadgets. The company uses a standard cost system to analyze its manufacturing costs. The standard cost of producing one gadget is as follows: Direct materials: 3 units @ $15 per unit Direct labor: 2 hours @ $20 per hour Variable overhead: $10 per gadget Fixed overhead: $5,000 per month During the month of June, the company produced 5,000 gadgets and incurred the following actual costs: Direct materials: 14,500 units purchased at $14.50 per unit Direct labor: 9,800 hours worked at an average rate of $21 per hour Variable overhead: $52,000 Fixed overhead: $5,200 Answer the following questions and show all calculations: a) Compute the direct materials price and efficiency variances. b) Compute the direct labor rate and efficiency variances. c) Compute the variable overhead spending and efficiency variances. d) Compute the fixed overhead budget and volume variances. e) Prepare a cost variance analysis table to summarize the results.
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $945,600 for 1,970 production hours. Each unit requires 10 minutes of cell process time. During March, 820 DVR players were manufactured in the cell. The materials cost per unit is $60. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 820 DVR players were assembled and placed in finished goods. 780 DVR players were sold for $248 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.$fill in the blank 0322c406902b019_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.$fill in the blank 0322c406902b019_2 per unit c. Journalize…
6. Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $869,700 for 2,230 production hours. Each unit requires 12 minutes of cell process time. During March, 990 DVR players were manufactured in the cell. The materials cost per unit is $69. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 990 DVR players were assembled and placed in finished goods. 940 DVR players were sold for $260 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_2 per unit c.…