FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Required information George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Total Etching Week Units 1 13 Cost $ 24 2 11 21 3 16 31 4 15 25 5 18 31 6 18 32 91 $ 164 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Required: 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bx. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Express these estimates in the form Y = a + bx. Note: Round your answers to 2 decimal places. Y =arrow_forwardHow to work this problarrow_forwarda. Suppose the marketing manager's suggestion is followed. What will be the unit cost of a bike produced in November?arrow_forward
- Godoarrow_forwardParadise Marine Sails manufactures sails for sailboats. The company’s capacity is 29,000 sails per month. They are currently producing 25,000 sails a month. Current production cost can be found in the chart below: Sales Price $200 Variable Cost Manufacturing Cost $100 Administrative Cost $50 Total Fixed Cost Manufacturing $500,000 Administrative $480,000 Should you accept a special order at a price of $170 for 3000 sails? Fixed cost will increase by $9,000 to produce these sails. Give a numerical justification Would your answer be different if the company was currently producing 28,000 sails?arrow_forwardCurrent Attempt in Progress Sandhill Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,065,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total Direct materials $1.92 $2,44,800 Direct labor 0.43 457,950 Variable manufacturing overhead 1.02 1,086,300 Fixed manufacturing overhead Variable selling expenses 1.53 1,629,450 0.37 394,050 Totals $5.27 $5,612,550 The U.S.Army has approached Sandhill Fiber and expressed an interest in purchasing 249,000 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an…arrow_forward
- Group work problems 1) The Rick Shaw Chair company makes twb types of rocking chairs, a plain chair and a fancy chair. Each rocking chair must be assembled and then finished. The plain chair takes 4 hours to assemble and 4 hours to finish. The fancy chair takes 8 hours to assemble and 12 hours to finish. The company can provide at most 160 worker-hours of assembling and 180 worker-hours of finishing a day. If the profit on a plain chair is $40 and the profit on a fancy chair is $65, how many rocking chairs of each type should the company make per day to maximize profits? What is the maximum profit?arrow_forwardCan you assist me with Chapter 16 Problem 7. I keep getting mixed up between formulas on the excel sheet. Thank you.arrow_forwardA-2arrow_forward
- ces Required Information. George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: 1 2 3 4 5 Units 5 45454 10 Req 2A 16 17 60 Total Etching Cost 5 22 21 25 20 28 32 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. $ 148 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.. 2-b. Express these estimates in the form Y=a+bX Complete this question by entering your answers in the tabs below. eq 28 Express these estimates in the form Y= a + bx. (Round your answers to 2 decimal places.) < Req2A Reg 213arrow_forwardA company is looking to launch a new product line, which requires new facilities to be used and at the moment has two planned products, called ‘Basic’ and ‘Super’. The cost per unit is planned as follows: Basic Super Direct materials £20 £24 Direct labour £14 £16 While using the absorption costing approach, the company uses machine hours as the basis to charge its production overheads. One unit of Basic will use 3 machine hours while one unit of Super will use 4 machine hours. The business sells these products at a price that gives a standard profit mark-up of 30% of full cost. For the coming year, the company expects to make and sell 8,000 units of Basic and 6,000 units of Super. If the company adopts the ABC approach, the details relating to the…arrow_forward
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