C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard I$3.25 per inch Direct Materials Direct Labor 3 hours $20 per hour During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. Compute the materials price variance for September. Multiple Choice $4,750U $4,375U $4,375F $4,750F

Zion Manufacturing had always made its components in-house. However, Bryce Component Works had recently offered to supply one component, K2, at a price of $25 each. Zion uses 10 000 units of Component K2 each year. The cost per unit of this component is as follows: 1 Direct materials Direct labour Variable overhead Fixed overhead Total Refer to the information for Zion Manufacturing. The fixed overhead is an allocated expense; none of it would be eliminated if production of Component K2 stopped. Required: 2 3 $12.00 8.25 4.50 2.00 $26.75 What are the alternatives facing Zion Manufacturing with respect to production of Component K2? List the relevant costs for each alternative. If Zion decides to purchase the component from Bryce, by how much will operating income increase or decrease? Which alternative is better?

[The following information applies to the questions displayed below.]   Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:       DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units     Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools:       Estimated Activity Activity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000     Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2…

Collins Co. produces a part used in the manufacture of one of its products. The unit product cost is $40, computed as follows:  Direct materials, direct labor, and variable overhead $24 Fixed overhead $16 Total $40   An outside supplier has offered to provide the parts for only $30 each. If the parts are purchased from the outside supplier, (1) the company estimates that 25% of the fixed overhead cost above could be eliminated; (2) the company can use the freed capacity to launch a new product, earning a contribution margin of $5 per unit. Based on these data, the per-unit dollar financial advantage or disadvantage of purchasing from the outside supplier would be: Multiple Choice a)$7 financial disadvantage b)$8 financial advantage   c)$2 financial disadvantage   d)$3 financial advantage

The Grouper Company manufactures 1,478 units of a part that could be purchased from an outside supplier for $14 each. Grouper’s costs to manufacture each part are as follows: Direct materials   $2   Direct labor   4   Variable manufacturing overhead   3   Fixed manufacturing overhead   8     Total   $17   All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses. (a) Calculate relevant cost to make. Relevent cost to make $         ___         per unit (c) Calculate net cost to buy if Grouper leases the manufacturing facilities to another company for $9,260 per year. Net cost to buy $     ______

Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Materials cost per bike other costs: Direct labor Depreciation and lease Supervision and control Factory administration Operation cost Materials cost Total cost Unit cost Coaster 750 $634 Coaster Traveler 450 $ 1,210 Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Total 1,200 Traveler $ 309,000 392,000 257,000 350,000 Total

Haver Company currently pays an outside supplier $15 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $5 per unit, direct labor of $8 per unit, and ncremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $5 per unit, direct labor of $2 per unit, and incremental overhead of $7 per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost per unit for each alternative method of making the part. Make with Method Make with 1 Method 2 Cost per unit Cost per unit Required t Buy Required 2 >

Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,015 hours each month to produce 2,030 sets of covers. The standard costs associated with this level of production are: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) Direct materials (8,400 yards) Direct labor Variable manufacturing overhead Total $ 59,276 $ 8,120 $ 3,857 During August, the factory worked only 700 direct labor-hours and produced 1,500 sets of covers. The following actual costs were recorded during the month: Per Set of Covers $ 29.20 4.00 1.90 $ 35.10 Total $ 42,000 $ 6,300 $ 3,150 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance 3. Variable…

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:     Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials ? $ 4.00 per yard $ ? Direct labor ? ?   ? Variable manufacturing overhead ? $ 2 per direct labor-hour ? Total standard cost per unit $ ?   Overhead is applied to production on the basis of direct labor-hours. During March, 700 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:     Materials Used Direct Labor Variable Manufacturing Overhead Total standard cost allowed* $ 11,200   $ 10,500 $ 2,100 Actual costs incurred $ 8,925   ? $ 4,032 Materials price variance ?       Materials quantity variance $ 700 U     Labor rate variance     ?   Labor efficiency variance     ?   Variable overhead rate variance ? Variable overhead efficiency variance ?   *For…

Each year, Basu Company produces 24,000 units of a component used in microwave ovens. An outside supplier has offered to supply the part for $1.17. The unit cost is: Direct materials $0.72 Direct labor 0.25 Variable overhead 0.13 Fixed overhead  2.95    Total unit cost $4.05 Required: 1. What are the alternatives for Basu Company?   2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production.   List the relevant cost(s) of external purchase.   3. Which alternative is more cost effective and by how much? _____ by $___ 4. What if $18,560 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? ____ by $____