A company is considering two alternatives with the following costs:    Alternative 1 Alternative 2Material costs$87,000  $87,000 Utilities costs$45,000  $44,100 Review costs$41,000  $44,100 Direct labor costs$51,000  $51,000    Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives.

Q: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a…

A: SOLUTION- WORKINGS NOTES-1 PARTICULARS AMOUNT SALES (101000  +151000 +201000) 453000 LESS-…

Q: A manufacturer is considering whether to make or buy a component used in its production. The annual…

A: Formula for total cost: Total cost = Variable cost + Reduced fixed cost

Q: If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $421,800,…

A: Under variable costing method, goods are valued at variable cost only. Under absorption costing…

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A: Manufacturing cost per unit (absorption costing) = Variable manufacturing costs + (total fixed…

Q: If variable manufacturing costs are $14 per unit and total fixed manufacturing costs are $212,800,…

A: Variable costing: Variable costing is one of the costing methods that allocate only variable costs…

Q: Summersville Production Company had the following projected information for the current year:…

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Q: Ouzts Corporation is considering Altemnative A and Alternative B. Costs associated with the…

A: While taking decision regarding various alternate , we need to consider the various cost and check…

Q: Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the…

A: Financial Advantage:  The financial advantage is the cost-saving or more benefit generated by one…

Q: Manor Company plans to discontinue a department that has a contribution margin of $25,000 and…

A: The effect of discontinuing the overall Profit = (Fixed cost - Avoidable fixed cost) -…

Q: XYZ Corp. currently produces a part but is looking to reduce costs.  Units        20,000     Per…

A: The make or buy decisions are made by analysing the relevant cost of buying it from outside.…

Q: A manufacturing company preparing to build a new plant is considering three potential locations for…

A: First we need to calculate total cost. The area at which total cost is minimum considered as…

Q: Marie's Magic Shoppe provides the following information about its single product. Targeted…

A: Contribution margin per unit = Selling price per unit - Variable costs per unit Contribution margin…

Q: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a…

A: Differential Analysis: Differential analysis is a technique of evaluating the two alternatives by…

Q: Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the…

A: Here we should  consider  only relevant costs. Here all costs are relevant costs

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A: Product: Products or goods are the physical/tangible items that are offered to the customers or…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: We would compare profit under both situation

Q: manufacturing cost per unit

A: Total manufacturing cost under absorption costing = Total variable manufacturing costs + Total fixed…

Q: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a…

A: working notes:   Sales   = 100,000+151,000   +201,000  =452,000 Variable Cost   = 49,000  +74,000…

Q: X Ltd. wants to replace one of its old machines. Three alternative machines namely M1, M2 and M3 are…

A: Cost of indifference point = difference in fixed costs / difference in variable cost    Given  Fixed…

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Q: Meg's Manufacturing Company can make 211 units of a component part for variable costs of $159,896…

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Q: Company XYZ is conducting an engineering economic analysis to decide whether to make vs purchase…

A: When there are two or more alternatives, like either we can manufacture the product or purchase the…

Q: A company is considering the following alternatives:   Alternative 1 Alternative 2 Revenues…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the…

A: Alternative A Alternative B Materials costs $49,000 $64,700 Processing costs 44,900 44,900…

Q: The cost per unit of the three products, A, B and C of a concern is as follows : A B C $ $ Direct…

A:

Q: Paradise Manufacturing currently makes one of its parts for a total cost of $3.80 per unit.  This…

A: The decision to buy or manufactures depend on the manufacturing cost associated to desired part…

Q: Jana's Manufacturing Company can make 100 units of a necessary component part with the following…

A: When company has to make choices between make or buy product, then it has to compare total costs at…

Q: Using incremental analysis, determine if the component should be purchased from the outside…

A: Incremental analysis is a decision-making technique used in business to determine the true cost…

Q: Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the…

A: The total cost includes both variable cost per unit and fixed cost per unit. The total cost will be…

Q: Relevant and irrelevant costs. Answer the following questions. Robinson Computers makes 5,700 units…

A:

Q: Vaughn Manufacturing incurs the following costs to produce 10,400 units of a subcomponent: Cost…

A: Solution Production- Direct material  8736 Direct labor 11752 Variable overhead  13104…

Q: A company manufactures a subcomponent of an assembly for $80 per unit, including fixed costs of $25…

A: Fixed cost will not change with change in decision that MAKE Or BUY  It wil be same

Q: A manufacturing firm is considering two locations for a plant to produce a new product. The two…

A: Cost of indifference = Difference in Fixed Cost / Difference in variable cost

Q: Use the following information to complete the excercise as follows.  Zion Manufacturing Company had…

A: 1.List the relevance of make and buy alternatives of the table:

Q: A Production Company can produce a product for $80 per unit. The investment per unit in equipment is…

A: Following is the answer to the given question

Q: Wayside, Inc., produces a product that currently sells for $72 per unit. Current production costs…

A: Savings in Direct labor cost 7.20 =24*30% Savings in Variable overhead cost 3.00 =10*30% Total cost…

Q: Using the total cost method what price should Pinkin charge?

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Q: The Borstal Company has to choose between two machines that do the same job but have different…

A: Machine A initial cost =40000 discount rate =6% Present value FACTOR =1-(1+r)^-n/r  Present value…

Q: If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $198,900,…

A: Solution: Introduction: In Variable costing method, only variable costs are included as product…

Q: Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model…

A: Contribution margin is the difference between sales and variable expenses whereas Product margin is…

Q: Use the following information and explain that how the reduction in selling price would affect the…

A: Margin of safety refers to the variation between the actual sales and break-even sales.

Q: Assume the company could eliminate one production supervisor with a salary of $30,000 if the…

A: Answer -    Computation of Manufacturing cost and Buying Cost - Incremental manufacturing Cost =…

Q: Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated…

A: Financial  advantage= Total cost for alternative  x - total cost for alternative  Y

Q: Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated…

A: In the given question, Total cost of both alternatives will be calculated. Since Alternative is Y is…

Q: Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $83 per…

A: Sales revenue: It is the revenue earned by a business on selling the goods and services to the…