ensen Corporation produces a part for use in the production of one of its products. The per-unit costs associated with the annual production of 1,000 units of this part are as follows Direct materials $5.25 $12.00 Direct labor "ariable factory overhead $2.75 ixed factory overhead $6.00 otal costs $26.00 2,500 of the fixed factory overhead costs associated with the production of this product are common fixed costs. ells Company has offered to sell 1,000 units of the same part to Jensen Corporation for $21 per unit. Jensen should: lect one: ) a. Buy the part, because this would save the company $5.00 per unit. ) b. Make the part, because this would save the company $1.00 per unit. c. Make the part, because this would save the company $2,500 annually. d. Buy the part, because this would save the company $2,500 annually.

Buren Company manufactures two products, Regular and Supreme. Buren's overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Regular Supreme Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Supreme using traditional costing using direct labor hours is: A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000.

Glover Company makes three products in a single facility. These products have the following unit product costs:     Product   A B C Direct materials $ 32.80 $ 49.30 $ 55.70 Direct labor   20.20   22.80   13.60 Variable manufacturing overhead   1.20   0.60   0.90 Fixed manufacturing overhead   13.50   9.10    9.70 Unit product cost $ 67.70 $ 81.80 $ 79.90     Additional data concerning these products are listed below.     Product   A B C Mixing minutes per unit   1.20   1.20   0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ 0.60 $ 1.10 $ 2.30 Monthly demand in units   2,000   3,300   1,300     The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company.   Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of…

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 87,600 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed nanufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $2.40 5 3.00 5 0.80 $ 4.15 $ 1.70 $ 2.00 The normal selling price is $22.00 per unit. The company's capacity is 120,000 units per year. An order has been received from a mail- order house for 2,700 units at a special price of $19.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required: 1. What is the financial advantege (disadvantage) of accepting the special order?

Hansaben

Vaughn Company manufactures two products, Mini A and Maxi B. Vaughn's overhead costs consist of setting up machines- $890,000; machining- $2,030,000; and inspecting- $640,000. Information on the two products is: Mini A Мaxi В Direct labour hours 14,000 26,000 Machine setups 700 500 Machine hours 21,000 23,000 Inspections 700 600 Overhead applied to Maxi B using traditional costing and direct labour hours is

Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs: Direct material ______$5/kg Direct labor_________$10/hour Total Manufacturing overhead __________________$30000 The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost

Qriole Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, William Brown, has developed the following information: Estimated wheels produced Direct labour hours per wheel Car Car wheels $ Truck 45,000 11,000 4 Total estimated overhead costs for the two product lines are $1,340,000. Calculate the overhead cost assigned to the car wheels and truck wheels, assuming that direct labour hours are used to allocate overhead costs. 8 180,000

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below:     Alpha Beta Direct materials $ 24 $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $ 133 $ 107   The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.   Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products? what is the alpha and beta

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below:     Alpha Beta Direct materials $ 24 $ 12 Direct labor 23 26 Variable manufacturing overhead 22 12 Traceable fixed manufacturing overhead 23 25 Variable selling expenses 19 15 Common fixed expenses 22 17 Total cost per unit $ 133 $ 107   The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.   2. What is the company’s total amount of common fixed expenses? 3. Assume that Cane expects to produce and sell 87,000 Alphas during the current year. One of Cane's sales representatives has found a…