he Heater product and 3,400 on the Massager. Younger's total material handling costs are $2,000,000 and its total processing costs are $1,160,000. Using ABC, how much overhead would be assigned to the Heater product? Group of answer choices
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Direct material means the raw material directly used in production process. Direct labor cost means…
Q: Vandalay Industries manufactures two products: toasters and blenders. The annual production and…
A: Predetermined overhead allocation rate using the traditional costing system = Total estimated…
Q: Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other…
A: In order to determine the no of tables to be produced, the desired ending finished goods are…
Q: Mapple, Inc. is a smart phone manufacturer. Each month, to make its smart phones, the firm also…
A: Relevant cost per unit = Direct materials + Direct labor + Variable OH + Avoidable Fixed OH =…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Units = 5,000 Direct material = 1 Direct labor = 0.50 Cutting = 7,500 Finishing = 12,000
Q: Jackson Manufacturing and Trading Company Limited produces several kitchen products, one of which is…
A: SOLUTION- 1- IF PRODUCTIONS OVERHEADS ARE ABSORBED ON THE BASIS OF MACHINE HOURS- PRODUCTION…
Q: Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many…
A: Calculate the minimum price per blanket that Otero Fibers could bid without reducing the company's…
Q: Calla Company produces skateboards that sell for $55 per unit. The company currently has the…
A: Solution 1: Calla Company - Comparative Income Statement Particulars Normal Volume Additional…
Q: Peluso Company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. Peluso's plant…
A: Total manufacturing cost for a product consist of cost of direct materials, direct labor and…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Under activity based costing, all overhead and indirect costs are allocated on the basis of…
Q: Jackson Manufacturing and Trading Company Limited produces several kitchen products, one of which is…
A: The indirect production costs incurred over and above the prime costs are generally referred to as…
Q: Marin Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: The question is related to the Cost Sheet. In cost accounting, product costs are defined as costs…
Q: Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other…
A: Purchase budget: Purchase budget is an estimated plan made to identify the number of units acquired…
Q: ing these mechanisms at full capacity are as follows. Variable costs per unit:…
A: Introduction : Incremental cost means the variable cost which increases with the increase in the…
Q: Alibangbang Company produces 100,000 units of Part 34B, used in one of its snowblower engines, each…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Motor Company manufactures 10,000 units of Part M-l each year for use in its production. The…
A: Answer with explanation are as follows
Q: Olson manufactures and sells 5,000 gun cabinets each month. A principal component part in each…
A: Average per unit manufacturing cost = Direct Material + Direct Labor + Variable manufacturing…
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Given the following information: Rent on factory equipment: $11,800 Insurance on factory building:…
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: The decision to accept the special order is taken by calculating the increase in net operating…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Under activity based costing, all indirect costs or overheads are allocated to products or jobs, on…
Q: Swifty Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…
Q: Plato Company is to submit a bid on the production of 22,500 ceramic plates. It is estimated that…
A: Product Costs: Product costs or Production costs are the costs that are incurred to produce a…
Q: Jones Products manufactures and sells to wholesalers approximately 200,000 packages per year of…
A: Special order decisions When deciding the price of products, a company will want to ensure that all…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: The manufacturing cost is the cost incurred to manufacture the products during the period.
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: Tactical decision making: Tactical decision making is a process in which the company can choose…
Q: Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this…
A: a. Compute per unit and total relevant cost for buying and making the product as shown below:…
Q: Terra Nova, Inc. has the capacity to rewire 300 vehicle wiring harnesses per day. The expected…
A: As per the given data, Vehicle bays rent will be a fixed cost because it won’t change with the…
Q: Old Camp Company manufactures awnings for its own line of tents. The company is currently operating…
A: Formulas:
Q: Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other…
A: Budgets are the estimates or forecasts which are made for future period. Production budget shows how…
Q: Calla Company produces skateboards that sell for $50 per unit. The company currently has the…
A:
Q: Han Products manufactures 26,000 units of part S-6 each year for use on its production line. At this…
A: Avoidable fixed costs = Total fixed costs x 1/3 = $9*1/3 = $3 per unit
Q: Cogswell Cogs, Inc. estimates its overhead for the upcoming year to be $1,693,500 and will use…
A: ABC (Activity Based Costing) : This is a method of allocating Overheads to the product based on the…
Q: “Jackson Manufacturing and Trading Company Limited produces several kitchen products, one of which…
A: Overhead means indirect costs related to production or manufacturing products. These costs can not…
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Answer: Production costs are basically those expenses incurred by a corporation during the…
Q: XYZ Co. manufactures baseball bats and wooden tops . Currently , the company makes 5,000 baseball…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in…
A: Rejecting order will be resulted that company would produce 1000 tractors and same fixed cost will…
Q: Swifty Company specializes in manufacturing a unique model of bicycle helmet. The model is well…
A: Production cost per helmet = Total production cost / No. of helmet produced
Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: The decision to accept the special order is taken by calculating the increase in net operating…
Q: The owner of Warwick Printing is planning direct labor needs for the upcoming year. The owner has…
A: The labor cost is computed by multiplying the labor time consumed by the hourly rate.
Q: Bramble Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The…
A: Here, Details of Old Machine: Cost is $88,000 Overhaul Expenses required for four years is 12,000…
Q: Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima.…
A: It is given that the Olympus Inc manufactures.
Q: Vandalay Industries manufactures two products: toasters and blenders. The annual production and…
A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…
Q: Han Products manufactures 30,000 units of part S–6 each year for use on its production line. At this…
A: Calculate the total cost: Particulars Making cost Purchase cost Direct material (30,000 x $3.6)…
Q: Vandalay Industries manufactures two products: toasters and blenders. The annual production and…
A: Overhead cost per blender = Total Overhead Cost of Blenders / Total Number of Blenders Total…
Q: Old Camp Company manufactures awnings for its own line of tents. The company is currently operating…
A: The question is based on the concept of Cost Accounting.
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Product cost are costs incurred to make a product i.e directly related to the production process.
Q: Windmire Company manufactures and sells to local wholesalers approximately 300,000 units per month…
A: Special orders are those which are irregular in nature and usually contain different terms, selling…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: and $85,000 on conversion costs this year, completing 47600 socks. Once the socks are completed,…
A: Given: To calculate the following things using the FIFO method as, Total cost and equivalent units…
Q: XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats…
A: Activity based costing system is a costing system in which all indirect costs are allocated to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)Computador has a manufacturing plant in Des Moines that has the theoretical capability to produce 243,000 laptops per quarter but currently produces 91,125 units. The conversion cost per quarter is 7,290,000. There are 60,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of the laptops uses 10 minutes of move time, 20 minutes of wait time, and 5 minutes of rework time. (All work is done by cell workers.) Required: 1. Compute the theoretical and actual velocities (per hour) and the theoretical and actual cycle times (minutes per unit produced). 2. Compute the ideal and actual amounts of conversion cost assigned per laptop. 3. Calculate MCE. How does MCE relate to the conversion cost per laptop?Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?Otero Fibers, Inc., specializes in the manufacture of synthetic fibers that the company uses in many products such as blankets, coats, and uniforms for police and firefighters. Otero has been in business since 1985 and has been profitable every year since 1993. The company uses a standard cost system and applies overhead on the basis of direct labor hours. Otero has recently received a request to bid on the manufacture of 800,000 blankets scheduled for delivery to several military bases. The bid must be stated at full cost per unit plus a return on full cost of no more than 10 percent after income taxes. Full cost has been defined as including all variable costs of manufacturing the product, a reasonable amount of fixed overhead, and reasonable incremental administrative costs associated with the manufacture and sale of the product. The contractor has indicated that bids in excess of 30 per blanket are not likely to be considered. In order to prepare the bid for the 800,000 blankets, Andrea Lightner, cost accountant, has gathered the following information about the costs associated with the production of the blankets. Direct machine costs consist of items such as special lubricants, replacement of needles used in stitching, and maintenance costs. These costs are not included in the normal overhead rates. Otero recently developed a new blanket fiber at a cost of 750,000. In an effort to recover this cost, Otero has instituted a policy of adding a 0.50 fee to the cost of each blanket using the new fiber. To date, the company has recovered 125,000. Lightner knows that this fee does not fit within the definition of full cost, as it is not a cost of manufacturing the product. Required: 1. Calculate the minimum price per blanket that Otero Fibers could bid without reducing the companys operating income. 2. Using the full-cost criteria and the maximum allowable return specified, calculate Otero Fibers bid price per blanket. 3. Without prejudice to your answer to Requirement 2, assume that the price per blanket that Otero Fibers calculated using the cost-plus criteria specified is greater than the maximum bid of 30 per blanket allowed. Discuss the factors that Otero Fibers should consider before deciding whether or not to submit a bid at the maximum acceptable price of 30 per blanket. (CMA adapted)Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,000 for the Sleepeze, 12,000 for the Plushette, and 5,000 for the Ultima. Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at 65,000, a marketing research assistant at 40,000, and an administrative assistant at 25,000) are budgeted for 130,000 next year. b. Depreciation on the offices and equipment is 20,000 per year. c. Office supplies and other expenses total 21,000 per year. d. Advertising has been steady at 20,000 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 15 percent of first-year Ultima sales for a print and television campaign. e. Commissions on the Sleepeze and Plushette lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. f. Last year, shipping for the Sleepeze and Plushette lines averaged 50 per unit sold. Gene expects the Ultima line to ship for 75 per unit sold since this model features a larger mattress. Required: 1. Suppose that Gene is considering three sales scenarios as follows: Prepare a revenue budget for the Sales Division for the coming year for each scenario. 2. Prepare a flexible expense budget for the Sales Division for the three scenarios above.
- Blue Spruce Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 8,200 lamps for the coming year. Division B has the capacity to manufacture 41,000 lamps annually. Sales to outside customers are estimated at 32,800 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $1 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $65,600. Consider the following independent situations. (a) What should be the minimum transfer price accepted by Division B for the 8,200 lamps and the maximum transfer price paid by Division A? Minimum transfer price accepted by Division B Maximum transfer price paid by Division A $ $ per unit per unitFlounder Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10 from an outside vendor. Division A needs 9,000 lamps for the coming year. Division B has the capacity to manufacture 45,000 lamps annually. Sales to outside customers are estimated at 36,000 lamps for the next year. Reading lamps are sold at $12 each. Variable costs are $7 per lamp and include $2 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $72,000. Consider the following independent situations.Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase reading lamps at a cost of $10.10 from an outside vendor. Division A needs 11,100 lamps for the coming year. Division B has the capacity to manufacture 49,600 lamps annually. Sales to outside customers are estimated at 38,500 lamps for the next year. Reading lamps are sold at $12.09 each. Variable costs are $6.87 per lamp and include $1.41 of variable sales costs that are not incurred if lamps are sold internally to Division A. The total amount of fixed costs for Division B is $75,900. Consider the following independent situations. What should be the minimum transfer price accepted by Division B for the 11,100 lamps and the maximum transfer price paid by Division A? (Round answers to 2 decimal places, e.g. 15.25.) Per unit Minimum transfer price accepted by Division B $_ Maximum transfer…
- Sleep-tight manufactures mattresses for the hotel industry. it has two products, down and firm and total overhead of 474000. the company plans to manufacture 400 downy mattresses and 100 firm mattresses this year. in manufacturing the mattresses, the company must perform 600 material moves for the downy and 400 for the firm. it processes 900 purchase orders for the downy and 700 for the firm. the companys employee work 1400 direct labor hours on the downy product and 3400 on the firm. sleep tights total material handling costs are 300000 and its total purchasing costs are 174000 using abc how much overhead would be assigned to the downy product? 1. 237,000 2.277,875 3. 196,125 4. 335,750Crane Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $193000. The company produces 54000 sweaters and 75000 jackets each year. Sweater production requires 27000 machine hours, jacket production requires 52000 machine hours. The company places raw materials orders 10 times per month, 4 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets? O $48250 O $115800 $69250 O $158200Coronado Inc. manufactures two products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $182000. The company produces 46000 sweaters and 85000 jackets each year. Sweater production requires 29000 machine hours, jacket production requires $4000 machine hours. The company places raw materials orders 8 times per month, 1 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order-processing overhead should be allocated to jackets? $182000 O $221000 O $97750 $159250
