Mighty Muffler, Inc., operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 500 mufflers were replaced. (Round "cost per muffler" to 2 decimal places.) Required: Fill in the missing amounts. Muffler Replacements 400 500 600 Total costs: Fixed costs 44,000 Variable costs 24,000 Total costs 68,000 Cost per muffler replacement: Fixed cost Variable cost Total cost per muffler replacement
Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Company ABC produces toys for many shops. Due to its excess capacity, the company tries to start a…
A: Calculation of Variable cost of each toy car is shown below: Formulation:
Q: Manama Inc. is now producing TVs. The company’s accounting department reports the following costs of…
A: Make or buy decision- The technique of marginal costing helps the management decide whether to…
Q: he fixed overhead is an allocated expense; none of it would be eliminated if production of Component…
A: Between choosing alternative the company should be consider by taking following option. 1. cost…
Q: Lucky Cow Dairy provided the following expense information for May: Assembly-line workers' wages…
A: Given information, Reconfiguring the assembly line=$125,700
Q: Right Size Corporation manufactures faucets. Several weeks ago, the company received a special-order…
A: Process firms accumulate production costs by process or department for a given period of time.…
Q: Acme Metal Jobshop is in the process of purchasing a multipurpose drill press. Two models, A and B,…
A: Queue Size in A= 4 Queue size in B= 4/130%= 3
Q: Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers…
A: Fixed costs are the cost that remains intact irrespective of number of units being produced.…
Q: Boston Exemcutive, Inc., produces executive limousines and currently manufactures the mini-bar inset…
A: Variable cost is the cost that changes with the change in the output level. Variable cost remains…
Q: Mountainburg Industries has developed two new products but has only enough plant capacity to…
A: Cost volume profit analysis is the analysis of the cost Both variable and fixed, how it changes with…
Q: K. Corporation Use Part A43 in one of products. The company's Accounting Department reports the…
A: The relevant costs are those costs than can be affected by the decision of a manager. The company…
Q: he Haven Machine Company makes 40,000 screws to be used in the production of its washing machines.…
A: In this question, we have to compute that the company should buy or make the product.
Q: Toyang Inc. produces 100,000 units of Part 34B, used in one of its snowblowerengines, each year. An…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Company X was recently approached by a supplier that would like to sell Company X a part. Company X…
A: Business entities either produce the goods themselves or purchase the goods from outside suppliers.…
Q: Lewis Auto Company manufactures a part for use in its production of automobiles. When 1,000 items…
A: Whenever business has alternatives of either make the product or buy the product, then total costs…
Q: Right Size Corporation manufactures faucets. Several weeks ago, the company received a special-order…
A: a.Calculate contribution margin per unit:
Q: Mighty Muffler, Inc. operates an automobile service facılity that specializes in replacing mumers on…
A: Fixed cost remain fixed at all level of output where as variable cost will vary with the level of…
Q: The Park Avenue Corporation currently makes a part required in its finished product. The company…
A: Total savings = Total cost of manufacture - Total cost of purchase
Q: Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the…
A: Particulars Amount Amount Outsourcing Cost ($2,000 * 1,000) $2,000,000 Less: Cost Savings…
Q: A. Calculate the differential cost of mini-bar insert. If an amount box does not require an entry,…
A: The Company produces executive limousines and currently manufactures the mini-bar inset and provides…
Q: Nisan is making over 45,000 cars per year and decided to manufacture and sell three comparable cars…
A: Total Over heads = £ 572,000 Total machine hours…
Q: If management decides to buy part S51 from the outside supplier rather than to continue making the…
A: Operating income: Operating income can be defined as the income generated by performing the basic…
Q: Scootz could sell its scooters to retailers either assembled or unassembled. The cost of an…
A: Introduction: Incremental analysis is a technique for making business decisions that determines the…
Q: Heritage Company manufactures and sells desk sets with a wholesale price of $275. The company has…
A: The selling Price is $275. Sale Unit = 4,000 Desks Revenue = 4000 * 275 = $1,100,000 As we have…
Q: Sardi Incorporated is considering whether to continue to make a component or to buy it from an…
A: Manufacturing costs that vary roughly in response to shifts in production output are referred to as…
Q: Lily Inc. manufactures furniture. During the current period, 160 tables were incorrectly shaped on…
A: The company also will prepare the contribution margin income statement to arrive at the contribution…
Q: Selma Corporation uses Part PB7 in one of its products. The company's Accounting Department reports…
A: Relevant costing is a costing technique that eliminates the usage of historical or unavoidable costs…
Q: Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes…
A: The budget is prepared to record variable and fixed cost at different level of production.
Q: Vanessa Corporation manufactures faucets. Several weeks ago, the firm received a special-order…
A: 1) Note: The fixed administrative cost is irrelevant to the decision. No, the conclusion is…
Q: A special order to purchase 10,000 desktop computer printers has recently been received from another…
A: The decision related to special order depends on cost incurred and price offered for the order.
Q: Stefani Company has gathered the following information about its product. Direct materials: Each…
A: Compute the pounds of materials required: Pounds of materials required = 3.40 + 0.60 Pounds of…
Q: Which statement is true with regard to this situation?
A: Given information is: Samson Designers produces a lady’s handbag that normally sells for $120. The…
Q: oston Exemcutive, Inc., produces executive limousines and currently manufactures the mini-bar inset…
A: In this question, we have been asked to take the decision of make and buy. If the purchase cost is…
Q: Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Stefani Company has gathered the following information about its product. Direct materials: Each…
A: Standard cost is the one which is set in advance so that actual rate can match it in order to…
Q: Dahl Corporation has just built a machine to produce car doors. Dahl had to build this machine…
A: The correct answer is Option (c)
Q: Crystal Displays Inc. recently began production of a new product, flat panel displays, which…
A: a.
Q: RE Detailing Ltd produces executive motor coaches and currently manufactures the 'Tent awnings' that…
A: The following computations are done for RE Detailing Ltd.
Q: Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood…
A: We have the following information: Assume that Wood Carving has 1,800 labor hours available next…
Q: Kyralei Co. manufacture golf carts and other recreational equipment. One order for RAGC Corporation…
A: The cost of manufacturing a product is determined by adding material, labor and overhead costs. The…
Q: Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to…
A: Break-even point in units = Fixed costs/Contribution margin per unit Margin of safety in units =…
Q: 1. What are the alternatives facing Zion Manufacturing with respect to List the relevant costs for…
A: Make or Buy Decision Make or Buy decision is the action taken by a producer to either make/produce a…
Q: mickey comapny uses 5000 units of pat Z each year as a component in the assembly of one of its…
A: Under make or buy decision, If the cost savings are more than the cost to buy external source then…
Q: Stefani Company has gathered the following information about its product. Direct materials: Each…
A: Standard cost per unit $ Material cost (5+1 pounds) x $1 x 95%* 5.7 Freight cost (6…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Mighty Muffler, Incorporated, operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 900 mufflers were replaced. Note: Round "cost per muffler" to 2 decimal places. Required: Fill in the missing amounts. Total costs: Fixed costs Variable costs Total costs Cost per muffler replacement: Fixed cost Variable cost Total cost per muffler replacement $ 800 Muffler Replacements $ $ 103.50 $ $ 900 82,800 46,800 129,600 $ 92.00 52.00 144.00 $ 1000 82.80 134.80PROBLEM. Please show your computations to receive full credit. Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories. Advertising $70,500 $34,000 $117,800 $63,000 $17,500 $76,000 $3,800 $40,700 $41,600 $22,900 $31,800 Cost of hardware (sides, handles, etc.) Cost of Wood Depreciation on Production Equipment Factory Property Taxes Factory Rent Glue Production Supervisor Salary Sales Manager Salary Utilities for Factory Wages for Maintenance Workers Wages of Assembly Workers Wages of Finishing Workers $91,400 $77,800 Compute the following: i. Direct material costs ii. Direct labor cost iii. Manufacturing overhead iv. Total manufacturing cost v. Prime cost vi. Conversion cost vii. Total period cost Edit Format Table 12pt v Paragraph B IU A3B Corporation makes different types of hubcaps for cars. The company accumulates volumes of metal edges as scrap. At least once a month, the scrap metal is sold to a local manufacturer for further processing. This month's scrap sales on account total P14,000.00. The company is using actual cost system. 10: Required: Prepare the appropriate journal entry to record the sale of the scrap for each of the following alternatives: 1 Scrap sale is viewed as additional revenue 2. Scrap sale is viewed as reduction of cost of goods sold 3. When scrap materials are traceable as indirect materials 4. When scrap materials are traceable as direct materials
- Mighty Muffler, Inc., operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 600 mufflers were replaced. Required: Fill in the missing amounts. Muffler Replacements 500 600 700 Total costs: Fixed costs 2$ 42,000 Variable costs 30,000 Total costs $ 72,000 Cost per muffler replacement: Fixed cost Variable cost Total cost per muffler replacementPelicans Ice is a snow cone stand near the local park. To plan for the future, it wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served. Month Number of snow cones Total operating costs January 6,400 $5,980 February 7,000 $6,400 March 4000 $5000 April 6,900 $6,330 May 8000 $9000 June 7,250 $6,575 Using the high-low method, the monthly operating costs if Pelicans sells 12,000 snow cones in a month are $1000 $13,000 $12,000 $20,000Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials Direct labor Variable overhead Fixed overhead Total Trailblazers' offer Materials $28 110 Total costs 19 Trailblazers has offered to sell the assembly to Mobility for $164 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $35,550. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) 38…
- Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 600 mufflers were replaced. Required: Fill in the missing amounts, labeled (a) through (o), in the table.Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials $ 27 Direct labor 104 Variable overhead 19 Fixed overhead 44 Total $ 194 Trailblazers has offered to sell the assembly to Mobility for $166 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,050. Required: a. Prepare a schedule that shows the total differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no…Scootz could sell its scooters to retailers either assembled or unassembled. The cost of an unassembled scooters is as follows. Direct materials $150 Direct labor 70 Variable overhead (0.70 of direct labor) 49 Fixed overhead (0.30 of direct labor) 21 Manufacturing cost per unit $290 The unassembled scooters are sold to retailers at $450 each. Scootz currently has unused productive capacity that is expected to continue indefinitely; management has concluded that some of this capacity can be used to assemble the scooters and sell them at $495 each. Assembling the scooters will increase direct materials by $5 per scooter, and direct labor by $10 per scooter. Additional variable overhead will be incurred at the normal rates, but there will be no additional fixed overhead as a result of assembling the scooters. You are required to: (a) Prepare an incremental analysis for the sell-or-process-further decision. (b) Should Speedy sell unassembled or process further?
- Mobility partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Traiblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units): Direct materials $ 34 Direct labor 107 variable overhead 14 Fixed overhead __42 Total $ 197 Trailblazers has offered to sell the assembly to Mobility for $164 each. The total order would amount to 1,800 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $20,000 per year. Accepting Trailblazers' offer would eliminate annual fixed overhead of $38,350. Required: a. Prepare a schedule that…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?Mo Furniture manufactures a frame for use in its production of sofas. When 10,000 frames are produced, the costs per unit are: Direct materials $ 12 Direct manufacturing labor 60 Variable manufacturing overhead 24 Fixed manufacturing overhead 32 Total $128 A company has offered to sell Mo Furniture 10,000 sofa frames for $120 per unit. Fixed manufacturing overhead of $20 per unit used to make the frame could be eliminated if the frames were purchased instead of made. What is the relevant cost per unit to make the frame in this make or buy decision?