The following information is made available from the costing records of a factor: (1) The original cost of the machine $1,00,000 Estimated life 10 years Residual value $5,000 Factory operates for 48 hours per week – 52 weeks in a year Allow 15% towards machine maintenance down-time. 5% may be allowed as setting up time. (11) Electricity used by the machine is 10 units per hour at a cost of 50 cents per unit.

Armada Shipping is a global logistics company. The company is organized into two divisions: Contracts and Retail. The Contracts Division, which is by far the larger division, handles customers who have regular shipping requirements and have signed contracts specifying costs and schedule for up to one year. The Retail Division handles shipments for customers who have only occasional shipping requirements and pay on an as-used basis. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and accounts. Billing refers to preparing and sending the bills as well as processing the payments. Accounts refers to establishing accounts, ensuring credit status, following up on collection, and so on. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. The manager of the Contracts Division has complained that the allocated costs from Accounts…

Your Company has the capacity to produce 80,000 units. It produces and sells 70,000 units of a product each year. At this level of activity, Clark Company incurs the following unit costs: Direct materials $18 Direct labor 25 Variable overhead 9 Fixed overhead 10 Variable S&A 7 Fixed S&A 12 A special order for 9,000 units under consideration would require the one-time rental of a special machine. The rental is for $36,000. If the order is accepted, $5 of the variable S&A can be avoided. What is the least amount the company can charge per unit in this special pricing decision? (Think breakeven.) O $61 O $56 O $58 O $59 O $57

570 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 9,000 units of the part that are needed every year. $15.60 $6.40 $5.40 $1.80 $5.50 Per Unit Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead $3.20 An outside supplier has offered to make the part and sell it to the company for $23.5 each. If this offer is accepted, the supervisor's salary and all of the variable costs can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outs…