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. Operation cost Materials cost Total cost Unit cost Coaster 477,000 Traveler 545,400 Total
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- Carolina Yachts builds custom yachts in its production factory in South Carolina. Once complete, these yachts must be shipped to the dealership. They have collected this shipping cost data: Prepare a scatter graph of the shipping data. Plot cost on the vertical axis and yachts shipped on the horizontal axis. Is the relationship between shipping costs and unit shipped approximately linear? Draw a straight line through the scatter graph. Using the high-low method, create the cost formula for Carolina Yachts shipping costs. The least-squares regression method was used and the analysis resulted in this cost equation: Y= 4,000+ 1,275x. Comment on the accuracy of your high-low method estimation. What would you estimate shipping costs to be if Carolina Yachts shipped 10 yachts in a single month? Use the cost formula you obtained in part B. Comment on how accurately this is reflected by the scatter graph you constructed. What factors other than number of yachts shipped do you think could affect Carolina Yachts shipping expense? Explain.Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.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. Material cost Operation cost Total cost Unit cost Coaster 760 $ 630 Coaster Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Traveler 460 $ 1,230 Traveler Total 1,220 $ 301,000 388,000 251,000 342,000 Total
- 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 Required: Coaster 750 Traveler 450 Total 1,200 $ 627 $ 1,203 $ 300,600 383,600 248,600 341,600 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. Operation cost Materials cost Total cost Unit cost Coaster Traveler TotalWitt 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 Required: Coaster 850 Traveler 550 Total 1,400 $ 702 $ 1,680 $ 337,000 460,000 305,000 378,000 Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Coaster Traveler Total Material cost $ Operation cost Total cost $ 796,500 $ 470,250 1,266,750 $ 477,900 $ 1,274,400 541,350 $ 1,011,600 1,019,250 Unit cost…ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and relatod demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through the sarne produclion department. E (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis. Data table ExerLight Product Mix Analysis A B Doluxe Regular Per Unit Sale price per unit 1,050 600 2 Deluxe Regular 111 57 Variable cosls per unit 3 Sale price 1,050 $ 600 Contribution margin per unit 4 Less expenses: Units produced with equivalent number of machine hours 5 Direct materials 260 150 Contribution margin for equivalent number of machine hours Direct labor 80 6 178 Variable manufacturing overhead 282 94 Fixed manufacturing overhead* 144 48 Variable operating…
- 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. Coaster Traveler Total Number of bikes assembled 750 450 1,200 Materials cost per bike $ 625 $ 1,201 Other costs: Direct labor $ 298,200 Depreciation and lease 381,200 Supervision and control 246,200 Factory administration 339,200 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.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. Other costs: Number of bikes assembled Coaster 765 Traveler Total 465 1,230 Materials cost per bike $ 634 $ 1,255 Direct labor $ 303,000 392,000 254,000 344,000 Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the the direct materials costs. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Material cost Operation cost Total cost Unit cost Coaster Traveler $ EA EA $ Total 0 0A new product Zico was recently introduced by Philadelphia Co., in order to complement its other products, Novo and Domo. The accountant used to allocate the indirect cost according to the units produced. With the recent addition of an expanded computer system, Sonata would like to investigate the possibility of implementing ABC. Before making a final decision, management has come to you for advice. You collected the following information regarding manufacturing overhead: Table (1) Mfg. Overhead Mfg. Overhead Costs Allocation bases Set-up $ 40,000 Number of set-ups Ordering materials $ 45,000 Number of material orders Handling materials $ 9,000 Number of times material was handled Inspection $ 21,000 Number of inspection hours $115,000 Table (2) Activity Products Zico Novo Domo Total Number of set-ups 5 20 55 Total…
- A new product Zico was recently introduced by Philadelphia Co., in order to complement its other products, Novo and Domo. The accountant used to allocate the indirect cost according to the units produced. With the recent addition of an expanded computer system, Sonata would like to investigate the possibility of implementing ABC. Before making a final decision, management has come to you for advice. You collected the following information regarding manufacturing overhead: Table (1) Mfg. Overhead Mfg. Overhead Allocation bases Costs $ 40,000 $ 45,000 $ 9,000 $ 21,000 Number of set-ups Set-up Ordering materials Handling materials Inspection Number of material orders Number of times material was handled Number of inspection hours $115,000 Table (2) Products Activity Zico Novo Domo Total Number of set-ups 5 20 55 Total Number of material orders 1 2 7 Total Number of times material was handled 1 17 Total Number of inspection hours Number of units produced 3 10 6,000 3,000 1,000 Required: 1.…Thermal Rising, Incorporated, makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order processing Custom design processing Customer service Number of gliders Number of orders Activity Rate $16 per direct labor-hour Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: $ 198 per order. $260 per custom design $ 422 per customer Number of custom designs Direct labor-hours per glider Selling price per glider Direct materials cost per glider. The company's direct labor rate is $18 per hour. Customer margin Standard Model 16 1 0 27.50 $ 1,925 $452 Custom Design 2 2 2 32.00 $ 2,490 $582 Required: Using the company's…Answer the following questions using the information below: Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards, Under their traditional cost system using one cost driver (direct manufacturing labor hours), the cost of a set of wooden chess pieces is $325.00. An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system. These cost drivers would be equipment usage, storage area for the material, and type of woods used. The new cost of a set of chess pieces was determined to be $298.00 per set. Given this change in the cost structure O A. The costing results for chess pieces under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the system. O B. Chess pieces have benefited from the new system. O C. Chess will now have a lower sales price. O D. Chess pieces are definitely more accurately costed.