Question No. 1-1 The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs are given below. Sales (50 per unit) 1,000,000 Manufacturing cost Variable (material labor and overhead) Fixed overhead Selling and administrative expenses Variable (sales commission RS 0.5 per unit) Fixed 40 per unit 30,000 2 per unit 7,000 A special order has been received from outside for 5,000 units at a selling price of 45 per unit this order will no effect on regular sales. The usual sales commission on this order will be reduced by one half. Required: a. Should the company accept / reject the order? b. Keeping in view the above answer narrate rationale to support your answer

Question No. 1-1 The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs are given below. Sales (50 per unit) 1,000,000 Manufacturing cost Variable (material labor and overhead) Fixed overhead Selling and administrative expenses Variable (sales commission RS 0.5 per unit) Fixed 40 per unit 30,000 2 per unit 7,000 A special order has been received from outside for 5,000 units at a selling price of 45 per unit this order will no effect on regular sales. The usual sales commission on this order will be reduced by one half. Required: a. Should the company accept / reject the order? b. Keeping in view the above answer narrate rationale to support your answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Question No. 1-1 The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales and costs are given below. Sales (50 per unit)                                            1,000,000 Manufacturing cost Variable (material labor and overhead)                        40 per unit Fixed overhead                                                            30,000 Selling and administrative expenses Variable (sales commission RS 0.5 per unit)    2 per unit Fixed                                                               7,000 A special order has been received from outside for 5,000 units at a selling price of 45 per unit this order will no effect on regular sales. The usual sales commission on this order will be reduced by one half. Required: Should the company accept / reject the order? Keeping in view the above answer narrate rationale to support your answer
Question: Pioner limited makes four component A, B, C and D for which cost in the forthcoming year are expected to be as follows: A B C D Production (units)          22,000      16,000      26,000      18,000 Rupees per unit Direct material 32 28 36 40 Direct labour 30 28 32 28 Variable Overhead 6 8 4 4 68 64 72 72 A sub-contractor has offered to supply units of A, B, C and D for Rs. 75, Rs. 71, Rs. 73 and Rs. 65 respectively. Required: Which product should buy or make.
Question: Company A has to decide whether to manufacture Product X internally or to buy from outsiders at Rs.11. Annual demand of product X is 10,000. The details of Company A internal production costs are as follows:                                                                                                                 Rs. per unit Direct material                                                                                  2.00 Direct labour                                                                                      3.00 Variable production overhead                                                    0.50 Fixed production overhead (2 hours x 0.25 per hour)       0.50 Fixed production overhead is calculated on the basis of 200,000 direct labour horus. 60% of fixed overhead is eliminated if company purchase from outsider. Company can produce 20,000 units of product Y if product X would be purchase from outsider and earned a contribution of Rs. 8 per unit. Company…
Question 1: Estimation of WC The management of ABC Company Limited has called for a statement showing the WC needed to finance a level of activity of 3,00,000 units of output per year. The cost statement of the company's product, for the above-mentioned activity level, is given below: Cost per unit TK 20 Direct material Direct labor Overhead Total cost Target profit Target selling price 5 TK 15 40 10 TK 50 1. Past records show that raw materials are held in stock, on an average, for two (2) months; 2. Work in process (WIP) will approximate to 15 days production; 3. Finished goods remain in warehouse on average for 1 month; 4. Suppliers for materials extend one month's credit; 5. Two months credit is normally allowed to customers (assume all sales are on credit) 6. A minimum cash balance of TK 5,00,000 is expected to be maintained; 7. The production pattern is assumed to be even during the year. Prepare a Statement of Working Capital Requirements
Hobbs Company produces one product for which following is information is available. Product A S per unit Selling price 6.00 Direct Material 2.50 Direct Labor 1.40 Variable overhead 1.10 $ 120,000 per annum Total Fixed cost Sales units 200,000 per annum |Required: a) Calculate contribution margin per unit. b) Calculate break even point in units. c) Calculate break even point in sales value d) Calculate profit for the year based on total contribution. e) Calculate Margin of safety in units and percentage of sales.
Yancey, Inc reports the following information Units produced Units sold Sales poce Direct materials Direct labor 520 units 520 units $150 per unit $40 per unit $30 per unit Variable manufacturing overhead Fixed manufacturing overhead $20 per unit $24,000 per year $15 per unit Variable selling and administrative costs Fixed selling and administrative costs $25,000 per year What is the amount of unit product cost that will be considered for external reporting purposes? (Round any intermediate calculations and your final answer to the nearest cent) OA. $76 15 OB 5136 15 OC. $116 15 OD $80.00
Assume that a company produced 10,000 units and sold 8,000 units during its first year of operations. It has also provided the following information: Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Fixed selling and administrative expense Per Unit $ 240 $ 85 $ 60 $ 10 $ 11 Per Year $ ? $ 250,000 If the company's unit product cost under absorption costing is $205, then what is the amount of fixed manufacturing overhead per year?
2. A company manufacturing two products furnishers the following data for a year: Product Annual Total Total number Total number Output (units) machine of purchase of set ups hours orders A 100 500 50 5 B 75 700 40 10 175 1200 90 15 The annual overheads are as under: Volume related activity costs RO 20000 Set up related costs RO 15000 Purchase related costs RO 35000 Total RO 70000 You are required to calculate the cost per unit of each product A and B based on: a. Traditional method of charging overheads b. Activity based costing method 本本本本本本**本本本本本本本*
Task 6. The following are consumed for the production of one unit: ➤ 18 kg of material A (price 1 € / kg and 3 m²) material B (price 2 € / m²) Direct labour per unit of product Estimated (planned) variable overheads per year Responsibility centre 14,000, € 1: Direct labour 70,000 h ===== ===== Responsibility centre 21 000, € Responsibility centre 1: 20 hours; rate 0,30€/h Responsibility centre 2: 30 hours; rate 0,50€/h Calculates: 1. variable production costs per unit 2. unit cost of production 3. full cost of one unit 2: Direct labour 180 000 h Estimated (planned)fixed overheads and general operating expenses per year Production costs - 100,000 € Selling expenses -30 000 € Administration expenses -15 000 €
The standard cost card for a product shows, Material cost 2 kg @ GH¢2.50 each = GH¢5.00 per unit Labour 2 hours @ GH¢10 each = GH¢20 per unit The actual which has emerged from business operations are as follows. Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each = GH¢39,600, Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000 Calculate; a) Labour Cost Variance b) Labour Rate Variance c) Labour Efficiency Variance d) Material Cost Variance e) Material Price Variance f) Material Quantity Variance
Gates Manufacturing operations for 2021 are as follows: $Per unit: Sales price 100 Direct material cost 36 Direct wages 8 Variable production overhead 6Per month: Fixed production overhead 198 000 Fixed selling expenses 24 000 Fixed administration expenses 52 000Variable selling expenses is 10% of sales value.Normal capacity was 11 000 units per month. January February Units UnitsSales 20 000 24 000Production 24 000 20 000 Using the two methods:A. Compute the unit production cost B. Determine the value of the closing inventory
Assume that a company makes 30,000 units of Part A each year. At this level of production, the company's acounting system reports the folloving cost per unit Direct materials S 16 Direct labor 10 Variable manufacturing overhead Fixed manufacturing overhead Total cust per unit $ 38 An autside supplier has offered to sell the company 30.000 pnrts per year for a price af $33 per part. All af the company's fixed costs will continue to be incurred even if the part is purchased from the outside supplier. What is the financial advantnge (disadvantege) af buying the parts from the outside supplier? Matiple Cacice