Adams Company makes fine jewelry that it sells to department stores throughout the United States. Adams is trying to decide which ofthe two bracelets to manufacture. Cost data pertaining to the two choices follow.Cost of materials per unitCost of labor per unitAdvertising cost per yearAnnual depreciation on existing equipmentRequireda. 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.Required AComplete this question by entering your answers in the tabs below.Fixed CostsRequired BTotal fixed costsBracelet A$13428,4005,500Required CBracelet B$2642Identify the fixed costs and determine the amount of fixed cost for each product.Bracelet ARequired ABracelet B6,1005,100Required B >

Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Adams Company makes fine jewelry that it sells to department stores throughout the Unite the two bracelets to manufacture. Cost data pertaining to the two choices follow. Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Required Bracelet A Bracelet B $ 13 42 8,400 5,500 $ 26 42 6,100 5,100

Adams Company makes fine jewelry that it sells to department stores throughout the Unite the two bracelets to manufacture. Cost data pertaining to the two choices follow. Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment Required Bracelet A Bracelet B $ 13 42 8,400 5,500 $ 26 42 6,100 5,100

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 22E: Silven Company has identified the following overhead activities, costs, and activity drivers for the...

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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
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