Type A: First cost P250,000 Annual operating cost $65,000 Insurance and property taxes = 4% Payroll taxes = 5% Extimate life - 12 years Type B: First cost P370,000 Annual operating cost P30,000 Annual Labor cost P38 000 Insurance and property taxes = 4% Payroll taxes = 5% Extimate life = 12 years

You have been asked to decide about one of two mutually exclusive alternatives (A & B). The following table gives the initial costs, annual savings in labor costs, and the expected life of two pieces of equipment. Plot PW vs. i for each equipment on the same graph and identify the AAIRR from the graph (i for the intersection). Then, highlight the corresponding value of i in yellow in your spreadsheet. High-cost Equipment (A) Low-cost Equipment (B) Initial Cost $137,910 $100,000 Savings in Labor Costs $42,000 / year $32,000 / year Life 5 years 5 years

Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company gathered the following information: Number of units to be produced and sold each year Unit product cost Estimated annual selling and administrative expenses Estimated investment required by the company Desired return on investment (ROI) Required: 1. Compute the markup percentage on absorption cost required to achieve the desired ROI. 2. Compute the selling price per unit. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. 1. Markup percentage on absorption cost 2. Selling price per unit 12,000 $26.00 $ 26,400 $ 300,000 12% %

If variable manufacturing costs are $9 per unit and total fixed manufacturing costs are $224,000, what is the manufacturing cost per unit if: a. 4,000 units are manufactured and the company uses the variable costing concept? $ b. 5,600 units are manufactured and the company uses the variable costing concept? c. 4,000 units are manufactured and the company uses the absorption costing concept? $ d. 5,600 units are manufactured and the company uses the absorption costing concept?

Determine this one

Helpful Division of X Company makes two products, Small and Large. The company has always used Conventional Costing (for financial reporting purposes), but this period wants to try using Activity-Based Costing to make better decisions. Information related to the current period is as follows: REQUIRED: (#1) Since the company has three activities, what are the three overhead application rates the company would use for activity-based costing? (ROUND EACH RATE TO THE NEAREST CENT and be sure to label the rates appropriately.) (#2) Using activity-based costing, what was the cost to manufacture one Small unit? (#3) Using activity-based costing, what was the cost to manufacture one Large unit? (#4) Based on what you learned about activity-based costing this week, how might Helpful Division managers use the new cost information from its activity-based costing system to better manage its operations? Helpful Resource: https://www.youtube.com/watch?v=PU3U_aMbKws

a) Classify each cost as fixed, variable or mixed, using production volume as the cost driver.   b) Use the high-low method to separate mixed costs into their fixed and variable components and prepare the cost formula for each of the mixed costs.   C. If Green Corridor Company expects a production volume of 30,000 bicycles in the coming quarter, prepare the production cost formula for the quarter and predict the total production cost.

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RelyaTech Corporation manufactures a number of products at its highly automated factory. The products are very popular, with demand far exceeding the factory's capacity. To maximize profit, management should rank products based on their selling price gross margin contribution margin per unit of the constrained resource contribution margin

1. Top-down versus bottom-up estimates. pts. a. Describe the methods and uses of each of the approaches. 2. Compare the advantages and disadvantages of each of the approaches.         3. What are the three types of costs discussed in the text? Define them.   4. For a small project requiring 120 hours at $50/hr and having a direct overhead rate of 40%, calculate the direct cost (Exercise 1 in Chapter 5). To that add indirect costs (G&A) at 20% and then profit at 20% for a total project price.  What are the estimated costs for: Design Programming In-house testing Which “approach to estimating” is this? What weaknesses are inherent in this approach? 5. Take another look at Exercise #5. Use Exercise Figure 5.1 on page 160.  But now you are asked to do a bottom-up estimate based on the following data and compare it with the top-down estimate of $800,000.  If confronted with these two estimates, what, if any, actions would you take?     Deliverables Estimated Hours Rate:…