Samsung's service and repair program competes with Apple's AppleCare. Assumed data follow. Direct labor rate Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) Required: Samsung $ 38 per direct labor hour $ 10 per direct labor hour 6% of direct materials cost 40% 1. For both Samsung and Apple, compute time charge per hour of direct labor (in $). 2. For both Samsung and Apple, compute materials markup per dollar of direct material cost (in %). Apple $40 per direct labor hour $10 per direct labor hour 4% of direct materials cost 40% 3. For both Samsung and Apple, use time and materials pricing to compute the price quote for a local college. Both companies estimate the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost. Samsung Apple 1. Time charge per hour of direct labor 2. Materials markup % 3. Time and materials price quote %

Samsung's service and repair program competes with Apple's AppleCare. Assumed data follow. Direct labor rate Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) Required: Samsung $ 38 per direct labor hour $ 10 per direct labor hour 6% of direct materials cost 40% 1. For both Samsung and Apple, compute time charge per hour of direct labor (in $). 2. For both Samsung and Apple, compute materials markup per dollar of direct material cost (in %). Apple $40 per direct labor hour $10 per direct labor hour 4% of direct materials cost 40% 3. For both Samsung and Apple, use time and materials pricing to compute the price quote for a local college. Both companies estimate the obligation to this college will require 1,000 direct labor hours and $35,000 of direct materials cost. Samsung Apple 1. Time charge per hour of direct labor 2. Materials markup % 3. Time and materials price quote %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7CE

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Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21
Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Selling price direct materials cost per unit direct labor ($12/labor hour) variable support costs ($4/ machine hour) fixed support costs ($10/machine hour) Model X $57 $11 1 labor hour required $12 per unit 1 machine hour required $4 per unit 1 machine hour required $10 per unit Model Y $60 $6 1 labor hour required $12 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit Model Z $70 $9 2 labor hours required $24 per unit 2 machines hour required $8 per unit 2 machine hours required $20 per unit What is the contribution margin per machine hour of the product that should be produced when there is a limited number of machine hours available?
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model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Check my wark Activity Cost Pool Supporting manufacturing Order processing Activity Rates $ 2 per direct labour-hour $20 per order $61 per custoner Customer service Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Deluxe Model Model 200 Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case 6e 2 e. 25 $440 0.40 60 $417 $ 20 The company's direct labour rate is $20 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City.
Answer the following questions using the information below: Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Model X Model Y Model Z Selling price $50 $60 $70 Direct materials 6 6 6 Direct labor ($12 per hour) 12 12 24 Variable support costs ($4 per machine-hour) 4 88 Fixed support costs 10 10 10 If there is a machine breakdown, which model is the most profitable to produce? Model X Model Y Model Z Models Y and Z
A company manufactures and markets three products that are made from the same set of machines. Production is limited by machine capacity. Using the data given below, you are required to indicate the priorities for products A, B, and C with a view to maximize profits. A B C ( Cost per unit) 3.25 Raw materials (Rs.) Direct Labour (Rs.) Other Variable Cost (Rs.) Selling Price (Rs.) Standard machine Time 2.25 4.25 0.50 0.50 0.50 0.30 0.45 0.71 5.90 6.00 7.00 required (per unit) 39 minute 20 minutes 28minutes In the following year, the company faces extreme shortage of raw materials. It is noted that 3kg, 4kg, 5kg of raw materials are required to produce one unit of A. B. and C respectively. How would product priorities change".
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