ACT 5140 chpt 21 hw
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ACT 5140 chpt 21 hw
Brief Exercise 21.4 (Static) Outsourcing a Product (LO21-2, LO21-4, LO21-5)
~ outsourcing cost =$40 per; current cost = $32 per; potential additional income = $9600/year
~@64 installations, outsourcing cost-> (40-32)*64 = $512/month or $6144 a year
I think
Correct answer
Exercise 21.1 (Static) Accounting Terminology (LO21-1, LO21-2, LO21-3, LO21-4, LO21-
5)
Exercise 21.4 (Static) Scarce Resources (LO21-1, LO21-2, LO21-3, LO21-4)
Combination of products shall be:
Denim = 6,000 bolts
Chenille = 240 bolts
Gauze = 1,200 bolts
Explanation:
As provided the machine hours are limited thus, the constraint is machine hours.
Accordingly contribution per machine hour shall be computed.
Denim has contribution of $14 for each 0.5 machine hour, thus, contribution per hour =
Chenille has contribution of $22 per machine hour
Gauze has contribution of $9 per 0.3 hours, thus contribution per machine hour =
= $30
According to contribution per hour, ranking of products shall be
Gauze I
Denim II
Chenille III
Therefore, bolts of gauze to be produced = 1,200 that is maximum
Hours required = 1,200
0.3 = 360
Hours remaining = 3,600 - 360 = 3,240
Bolts of Denim to be produced = 6,000 that is maximum
Hours required = 6,000
0.5 = 3,000
Hours remaining = 3,240 - 3,000 = 240
Bolts of Chenille that can be produced =
= 240 bolts
Total contribution in this case
= (1,200
$9) + (6,000
$14) + (240
$22)
= ($10,800 + $84,000 + $5,280)
= $100,080
Exercise 21.6 (Static) Incremental Analysis: Make or Buy Decision (LO21-1, LO21-2, LO21-3, LO21-4)
a) The
incremental analysis
for variable overhead is nil, for fixed overhead is 0, purchase
price is $90,000 and for total cost $15000. b) No, the company should continue manufacturing not buying.
a) To determine whether Swank Company should buy the part or continue to manufacture it, we need to compare the total cost of manufacturing with the total cost of buying the part from an outside
supplier
.
Let's complete the comparative schedule using the information:
Make the Part Buy the Part Incremental Analysis
Variable Overhead
$75,000 - -
Fixed
Overhead $60,000 $60,000 0
Purchase Price of part $6 per unit $90,000 ($90,000)
Total cost to acquire part $135,000 $150,000 ($15,000)
In the comparative schedule, we have filled in the costs for the manufacturing option (Make the Part) and the buying option (Buy the Part). Now, we can calculate the incremental analysis by subtracting the costs of the buying option from the costs of the manufacturing option.
Incremental Analysis = Total cost to acquire part (Make the Part) - Total cost to acquire part (Buy the Part)
Incremental Analysis = $135,000 - $150,000
Incremental Analysis = -$15,000
The incremental analysis represents the difference in costs between the two options. In this case, the negative value indicates that it would be $15,000 cheaper to continue manufacturing the part rather than buying it from the outside supplier.
b) Therefore, based on the incremental analysis, Swank Company should continue to manufacture the part rather than buying it.
Learn more about
fixed cost
here:
brainly.com/question/30764172
#SPJ11
Complete question is:
"The cost to Swank Company of manufacturing 15,000 units of a particular part is $135,000, of which $60,000 is fixed and $75,000 is variable. The company can buy the part from an outside supplier for $6 per unit. Fixed costs will remain the same regardless of Swank’s
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Question 1
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Bonita's Manufacturing Company can make 100 units of a
Central
necessary component part with the following costs:
e 365
$119000
Direct Materials
24000
Direct Labor
ges
53000
Variable Overhead
za
30000
Fixed Overhead
If Bonita's Manufacturing Company can purchase the component
externally for $195000 and only $6000 of the fixed costs can be
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O Make and save $7000
O Make and save $22000
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OBuy and save $22000
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Each machine s capable of performing the same task given amount of Hime . Assume
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your anaylsis
Machine X
Machine Y
First cost
$ 5000.00
$8000,00
$150.00
$2000.00
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$00.00
Salvage value
Es timated life inyear
which machine would youchoo se? Base your answer on annual.cost Pravide cash flow
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Multiple Choice Question 74
In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
70000
$92000
February
42000
70000
March
60000
88000
April
82000
120000
O $50000
O $17500
O $32000
$18000
Click if you would like to Show Work for this question: Qpen Sho
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17 ANSWER PLS
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geNOWv2 | Online teachin X +
m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... A
+
If fixed costs are $295,000, the unit selling price is $30, and the unit variable costs are $21, what is the break-even point in sales units it
fixed costs are reduced by $41,500?
Oa. 28,167 units
Ob. 33,800 units
Oc. 42,250 units
Od. 22,533 units
8:2
9
▬▬
▬
6
8
O
D
5/2
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Qd 80.
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21.1A
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Multiple Choice Question 73
In applying the high-low method, what is the unit variable cost?
Month
Miles
Total Cost
January
70000
$92000
February
42000
70000
March
60000
88000
April
82000
120000
O $1.46.
O $1.25.
O $1.67.
Cannot be determined from the information given.
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Question 12
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Morales Corporation produces microwave ovens. The following per
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$28, variable manufacturing overhead $12, fixed manufacturing
overhead $40, variable selling and administrative expenses $13,
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cost approach. (Round answer to 2 decimal places, e-g. 10.50 %.)
Central
ce 365
ges
Zza
Markup percentage
8:46 PM
शी
11/18/2019
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Required information
Problem 03.036 DEPENDENT MULTI-PART PROBLEM - ASSIGN ALL PARTS
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Ch. 7 Incremental Analysis pg 467 Segment Income Statement
Please provide the answer and explain the answer to the following question with the information given below.
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Segment Margin $20,000
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AREA Z
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PLANT A
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USC: 5
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400
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PLANT B
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$1,163.42
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September
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December
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18
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Il 5G 31
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Central
e 365
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O $14.50
a
O $15.50
O $11.50
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Totaul Unit Cost $110
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⠀⠀⠀
со
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185,000
$ 341,500
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C
QAA
Outsource to
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>> Bit
Q5G 71%
Ę
$ 300,000
Difference
$9,500…
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Related Questions
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