P Carla Vista Corporation produces commercial fertilizer spreaders. The following information is available for Carla Vista's anticipated annual volume of 400,000 units. Per Unit Total Direct materials Direct labor $32 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $17,200,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 13,200,000 The company has a desired ROI of 20%. It's investment in assets is $128,000,000. Compute total cost per unit. Total cost per unit Compute desired ROI per unit. Desired ROI per unit $ Compute markup percentage using total cost per unit Mark-up percentage on the total cost per unit Compute target selling price. Target price per unit $

P Carla Vista Corporation produces commercial fertilizer spreaders. The following information is available for Carla Vista's anticipated annual volume of 400,000 units. Per Unit Total Direct materials Direct labor $32 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $17,200,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 13,200,000 The company has a desired ROI of 20%. It's investment in assets is $128,000,000. Compute total cost per unit. Total cost per unit Compute desired ROI per unit. Desired ROI per unit $ Compute markup percentage using total cost per unit Mark-up percentage on the total cost per unit Compute target selling price. Target price per unit $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...

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Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Econ Company produces widgets. Each widget sells for $120, and the company sells approximately 50,000 widgets each year. Unit cost data for the year follows: Direct Material, $38 Direct Labor, $20 Other Cost: Variable Fixed Manufacturing $12 $8 Distribution 8 6 a. $70 b. $45 c. $75 d. $89
Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 536,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $13 Fixed selling and administrative expenses Compute the total cost per unit. Total cost per unit $ eTextbook and Media The company has a desired ROI of 25%. It has invested assets of $27,872,000. Compute the desired ROI per unit Per Unit Desired ROI per unit $6 $10 $14 S Total $3,752,000 $1,072,000
Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $16 7 11 6. Total $400,000 180,000 The company has a desired ROI of 30%. It has invested assets of $24,300,000.
The following information is available for a product manufactured by Gardenia Corporation: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and admin. expenses Fixed selling and admin. expenses Per Unit $62 48 15 10 Total $250,000 55,000 Gardenia has a desired ROI of 16%. It has invested assets of $8,250,000 and expects to produce 5,000 units per year.
Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) Production Costs: 4,000 6,000 Direct Materials. $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries . Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20.000 Total $365.000 $477.500
Han Products manufactures 21,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials$ 3.50Direct labor9.00Variable manufacturing overhead2.50Fixed manufacturing overhead9.00Total cost per part$ 24.00 An outside supplier has offered to sell 21,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $71,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier’s offer?
Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 536,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Compute the total cost per unit. Per Unit Total cost per unit $ $7 $9 $13 $13 Total $3,752,000 The company has a desired ROI of 25%. It has invested assets of $27,872,000. $1,608,000
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling’s controller provided the following information for the coming year:Units production 30,000Unit direct materials $ 9.95Unit direct labor $ 2.75Unit variable overhead $ 1.65Unit fixed overhead* $ 2.50Unit selling expense (variable) $ 2.00Total fixed selling expense $ 65,500Total fixed administrative expense $231,000* The unit fixed overhead is based on 30,000 units produced.Required:1. Calculate the cost of one unit of product under absorption costing.2. Calculate the cost of one unit of product under variable costing.3. Calculate operating income under absorption costing for next year.4. Calculate operating income under variable costing for next year.
Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production OCosts: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials... 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and…
Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 501,000 units. Per Unit $8 $13 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $13 Fixed selling and administrative expenses Total $3,507,000 Absorption-cost pricing markup percentage $1,503,000 The company has a desired ROI of 25%, It has invested assets of $30,060,000, Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.) %