Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. E Machine First cost, $ -86,000 -17,000 AOC, $ per year Salvage value, $ 10,000 Life, years 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. D -68,000 -16,000 8,000 4 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with present worth analysis using tabulated factors. The present worth of machine D is $-. and the present worth of machine E is $- The machine selected based on the present worth analysis is [(Click to select)

Required information Akash Uni-Safe in Chennai, India, makes Terminator fire extinguishers. The company needs replacement equipment to form the neck at the top of each extinguisher during production. E Machine First cost, $ -86,000 -17,000 AOC, $ per year Salvage value, $ 10,000 Life, years 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. D -68,000 -16,000 8,000 4 Select between two metal-constricting machines. Use the corporate MARR of 15% per year with present worth analysis using tabulated factors. The present worth of machine D is $-. and the present worth of machine E is $- The machine selected based on the present worth analysis is [(Click to select)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 31P: Jonfran Company manufactures three different models of paper shredders including the waste...

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Required Exhibit 13.4 in the chapter as your guide. E13-4 Time allowed: 10 minutes cover a relevant range of 15,000 to 25.000 machine-hours each year. Overhead costs Cost formula Utilities £0.30 per machine-hour Indirect labour £52,000 plus £1.40 per machine-hour Supplies £0.20 per machine-hour Maintenance £18,000 plus £0.10 per machine-hour Depreciation 000'obF Required Prepare a flexible budget in increments of 5,000 machine-hours. Include all costs in your budget. E13-5 Time allowed: 20 minutes The variable portion of Murray Company's flexible budget for manufacturing overhead is given below: Machine-hours Cost formula 000 £2,800 Variable overhead costs (per machine-hour) £0.20 £2,400 Supplies 000 11,200 Maintenance 009'b 000' 1,200 1,400 Utilities 0.10 000 0 00 £21,000 0.40 4,800 Rework time 000 0 £1.50 £15,000 £18,000 Total variable overhead cost During a recent period, the company recorded 11,500 machine-hours of activity. The variable overhead costs incurred were: Supplies…
Matt Lab Berhad's main activities are research and development. Currently, it develops a chemical formula for cleaning materials. The prototype is near completion. The cost of the project is as follows: Cost of Materials: RM250,000 Consultant Fees: RM75,000 Fees to register trade design: RM15,000 Selling and administrative cost allocated: RM78,000 Training cost to operate assets: RM36,000 Depreciation of Equipment: RM20,000 Required: Determine the cost of the development project that should be capitalized. Select one: O a. RM340,000 Ob. RM360,000 OC RM474.000 d. RM396.000
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Nardin Outfitters has a capacity to produce 19,500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,650 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 590 Fixed manufacturing costs 165 Variable selling and administrative costs 155 Fixed selling and administrative costs 125 Total costs $ 1,035 The company has received a special order for 2,000 tents at a price of $750 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $60 per tent. The special order would have no effect on total fixed costs. The company has rejected…
K- Your company is implementing a new production line for making solar panels. The company has two main attematves in setting up the production line eher use highly automated equipment or general-purpose equipment Cost information for these two options is as follows ALTERNATIVE Automated Equipment FIXED COST $900,000 per year General Purpose Equipment $150,000 per year At an annual requirement of 20,000 units, what does the company save per year by selecting the lower-cost option? OA $400,000 OB. $350,000 OC $150,000 OD. $250,000 VARIABLE COST $50 per und $100 per unit
ezto.mheducation.com/ext/map/index.html?_con=con&extern -30 d 1 ok $ int a Print 0 eferences 2 Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 159,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometers during a year, the average operating cost increases to 15.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a +bX. 3. If a truck were driven 132,000 kilometers during a year, what total operating cost would you expect to be incurred? Mc Graw Hill (@ 12 2 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Variable cost Fixed cost Using the high-low method, estimate the variable operating cost per…
A company is going to buy a new machine for manufacturing its product. Four different machines are available. A B C D First cost Php 24,000 Php 30,000 Php 49,600 Php 52,000 Power per year Php 1,300 Php 1,360 Php 2,400 Php 2,020 Labor per year Php 11,600 Php 9,320 Php 4,200 Php 2,000 Maintenance per Php 2,800 Php 1,900 Php 1,300 Php 700 year Taxes and insurance 3% 3% 3% 3% Life, years Money is worth 17% before taxes to the company. Using annual cost method, what is the total annual cost of machine A?
W NWP Assessment Player UI Application W NWP Assessment - 1023.121103 BFN-C201-1023-... th Solution Walkthrough Videos Question 3 of 7 -/0.75 View Policies Current Attempt in Progress You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,400 to purchase and has a three-year life. Machine B costs $17,500 to purchase but has a four year life. Regardless of which machine you purchase, it will have to be replaced at the end of its operating life. Assume a marginal tax rate of 35 percent and a discount rate of 13 percent. Calculate the equivalent annual costs (EAC) of each machines. (Do not round intermediate calculations. Round answers to 2 decimal places, e.g. 15.27.) Equivalent Annual Cost (EAC) of machine A $4 Equivalent Annual Cost (EAC) of machine B $4 Which machine should you choose? You should choose eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste container is the same. The number of waste containers that Jonfran will need during the following years is estimated as follows: The equipment used to manufacture the waste container must be replaced because it is broken and cannot be repaired. The new equipment would have a purchase price of 945,000 with terms of 2/10, n/30; the companys policy is to take all purchase discounts. The freight on the equipment would be 11,000, and installation costs would total 22,900. The equipment would be purchased in December 20x4 and placed into service on January 1, 20x5. It would have a five-year economic life and would be treated as three-year property under MACRS. This equipment is expected to have a salvage value of 12,000 at the end of its economic life in 20x9. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in both direct materials and variable overhead. The savings in direct materials would result in an additional one-time decrease in working capital requirements of 2,500, resulting from a reduction in direct material inventories. This working capital reduction would be recognized at the time of equipment acquisition. The old equipment is fully depreciated and is not included in the fixed overhead. The old equipment from the plant can be sold for a salvage amount of 1,500. Rather than replace the equipment, one of Jonfrans production managers has suggested that the waste containers be purchased. One supplier has quoted a price of 27 per container. This price is 8 less than Jonfrans current manufacturing cost, which is as follows: Jonfran uses a plantwide fixed overhead rate in its operations. If the waste containers are purchased outside, the salary and benefits of one supervisor, included in fixed overhead at 45,000, would be eliminated. There would be no other changes in the other cash and noncash items included in fixed overhead except depreciation on the new equipment. Jonfran is subject to a 40 percent tax rate. Management assumes that all cash flows occur at the end of the year and uses a 12 percent after-tax discount rate. Required: 1. Prepare a schedule of cash flows for the make alternative. Calculate the NPV of the make alternative. 2. Prepare a schedule of cash flows for the buy alternative. Calculate the NPV of the buy alternative. 3. Which should Jonfran domake or buy the containers? What qualitative factors should be considered? (CMA adapted)
Question 1 BTS manufactures several components for a clock radio and assembles these parts as well. Recently, he noticed that the amount of time and resources spent on making those individual components is too much. The production manager advised him that some components can be bought from a supplier, which will spare capacity for the production of more clock radios. His company's information for the year ending 2020 is as follows: Cost of buying component C120 RM0.60 Cost of making component C120: Materials RM0.45 Labor RM0.20 Overheads RM0.10 Machine capacity is at an annual fixed cost of RM10,000. Advise BTS if component C120 should be manufacture or purchased.
Exercise 3 (Make or Buy a Component) Cañada Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Cañada for P200 per unit. To evaluate this offer, Cañada, Inc., has gathered the following information relating to its own cost of producing the thermostat internally: 15,000 Units Year Per Unit Р60 per P 900,000 1,200,000 150,000 750,000 Direct materials. Direct labor 80 Variable manufacturing overhead. Fixed manufacturing overhead, traceable. Fixed manufacturing overhead, common, allocated... 10 50* but 1,500,000 P4,500,000 100 Total cost... P300 * 40% supervisory salaries; 60% depreciation of special equipment (no resale value). Required: 1. Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, should the outside supplier's offer be accepted? Show all computations. 2. Suppose that if the…
Required Information Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 2 3 4 5 Units 9 5 11 5 8 11 49 Total Etching Cost $ 24 21 29 20 24 27 $ 145 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 5A-5 Part 3 (Algo) 3. If the company processes nine units next week, what would be the expected total etching cost? (Round your intermediate calculations and final answer to 2 decimal places.) Expected total etching cost
Pls answer the all questions with solutions Duo Corporation operates its factory 300 days per year. Its annual consumption of Material Y is 1,200,000 gallons. It carries a 10,000 gallon safety stock of Material Y and its lead time is 12 business days. 1. What is the order point for Material Y? a. 10,000 gallons b. 38,000 gallons c. 48,000 gallons d. 58,000 gallons 2. If the EOQ for Material Y is 30,000 gallons, and the carrying cost per gallon per year is P0.25, what is the total annual carrying cost for Material Y? a. P3,750 b. P7,500 c. P6,250 d. P10,000 3. A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year and the ordering costs are P100. The company uses an order quantity of 500 units. If the company operates 200 days per year, and the lead time for ordering Part C is 5 days, what is the order point? a. 250 units b. 1,000 units c. 500 units d. 2,000 units