K Small Medium Large $430 $650 $1,220 A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Variable manufacturing (230) (300) (510) Fixed manufacturing (120) (180) (290) Fixed selling and administrative (70) (95) (160) Unit profit $10 $75 $260 Demand in units Machine-hours per unit 100 170 100 40 60 100 The maximum machine-hours available are 6,500 per week. What is the contribution margin per machine-hour for a medium appliance? OA. $5.83 B. $9.58 OC. $1.25 OD. $0.44

K Small Medium Large $430 $650 $1,220 A.C. Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Unit selling price Unit costs: Variable manufacturing (230) (300) (510) Fixed manufacturing (120) (180) (290) Fixed selling and administrative (70) (95) (160) Unit profit $10 $75 $260 Demand in units Machine-hours per unit 100 170 100 40 60 100 The maximum machine-hours available are 6,500 per week. What is the contribution margin per machine-hour for a medium appliance? OA. $5.83 B. $9.58 OC. $1.25 OD. $0.44

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 1CE: Thomas Corporation produces heating units. The following values apply for a part used in their...

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Period Ccb Home | bartl... O O of 15 2 £ Required information [The following information applies to the questions displayed below.] 22 my.post.edu... Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total fixed manufacturing cost Okay 3 Y x 10- Unit 1 -... 4 10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? LO 5 G what is the h... 6 7 Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 Init 1 - C... 9 ct 0 dele
Topic 1 (25 units) Topic 1 (25 units) the production range of the Martinez Company ranges from 7,500 units to 12,500 product units. When it produces and sells 10,000 units, the unit cost is as follows: Unit Cost Direct Materials 6,00€ Direct Work 3,50€ Metavlita G.B.E. 1,50€ Stathera G.B.E. 4,00€ Fixed cost of sales 3,00€ Stable administrative expenditure 2,00€ Sales commissions 1,00€ Variable administrative expenditure 0,50€ They ask: Calculate the total cost of the period incurred for the sale of 10,000 units. Calculate the variable and the total period cost if 8,000 units were sold . Calculate the variable and total period cost if 12,500 units were sold .
Product Information A B $335.00 5820 52% Unit Sales Price $470.00 3841e 48% Units Manufactured and Solde Sales Mix (% of total units sold)a Vary with Unit Costs A Be $264.534e $58.804e $19.51e $342.84e Direct Material $162.614 Direct Labore $44.804 $15.43 $377.364 Other Vary-with-Unit Costse Total Vary with Unit Costse Fixed Costs $183,868.20 Vary-with-Revenue Costs Sales Commissionse 3.5% calculate the break even point in dollars for each producte calculate the Break-Even Variable Costs for the two products.e calculate the Break-Even Contribution Margin (this is the contribution margin for the total number of units reauired to break even.)' calculate the Break-Even Profit Before Tax. (Break even profit would normally be 0, but because we rounded up our break-even units, this should be slightly more than 0.)e
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t 0 ences Mc Graw Hill Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Break even point $ 25 $ 20 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…
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Question Q1Moona Inc. produces Mobile phones. Information of the company's operations last year appear below: Fixed cost:Fixed Manufacturing overhead Rs 40,000Fixed Selling & Administrative Rs 60,000Selling Price per unit Rs 100Variable cost per unit:Direct Materials Rs 30Direct labor Rs 10Variable Manufacturing overhead Rs 5Variable Selling & Administrative Rs 2Units In beginning Inventory 0Units Produced 2000Units Sold 1900 Required: a. Compute the unit product cost under both absorption and variable costing.b. Prepare an income statement for the year using absorption costing.c. Prepare a contribution format income statement for the year using variable costing. d. Prepare a report reconciling the difference in net operating income between absorption and variable costing for the year.
Period Ccb Home bart.... 5 of 15 2 Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: # Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Incremental cost per unit produced 15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.) Okay 3 4 & LO 5 * 6 Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 7 $4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 I ! 9 11 ? 0 delete return
Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' 'Z' (RM) Product type (RM) (RM) Direct material 110 153 Direct labour department 140 Direct labour department 22d. Variable overheads Selling price 55 70 www 32 44 www 20 28 250 320 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct Jabour from department 2. www (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.
Thomas Corporation produces heating units. The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = 45 C = 4.50 Required: 1. For Thomas, calculate the ordering cost, the carrying cost, and the total cost associated with an order size of 250 units. 2. Calculate the EOQ and its associated ordering cost, carrying cost, and total cost. Compare and comment on the EOQ relative to the current order quantity. 3. What if Thomas enters into an exclusive supplier agreement with one supplier who will supply all of the demands with smaller, more frequent orders? Under this arrangement, the ordering cost is reduced to 0.45 per order. Calculate the new EOQ and comment on the implications.