Data table201920201. Number of jobs billed4506002. Selling price per job3,500 $3,3003. Engineering labor-hours27,00030,0004. Cost per engineering labor-hour39 $405. Engineering support capacity (number of jobs the firm can do)7507506. Total cost of engineering support (space rent, equipment, etc.)$210,000 $247,5007. Engineering support-capacity cost per job$280 $330PrintDone%24 McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-familyhomes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service atlow cost. McCarty presents the following data for 2019 and 2020.(Click the icon to view the data.)Engineering labor-hour costs are variable costs. Engineering support costs for each year depend on theengineering support capacity that McCarty chooses to maintain each year (that is, the number of jobs it can doeach year). Engineering support costs do not vary with the actual number of jobs done in a year.Read the requirements.Requirement 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020.The amountunused capacity isjobs and the cost of unused capacity isRequirement 2. Suppose McCarty can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that McCarty could save2020 by downsizing engineering support capacity?McCarty can reduce engineering support capacity byfor a cost savings ofThis is theamount of costs McCarty can save by downsizing in 2020. Itreduce capacity further (by another50 jobs) becausewouldcapacity to do thejobs in 2020.Requirement 3. McCarty,fact, does not eliminate any of its unused engineering support capacity. Why might McCarty not downsize?McCarty may have chosen not to downsize because it projects salesV in the near term that would lead toV demand for and utilization of capacity. McCarty may have also decided not to downsize because downsizing requiresreductioncapacity and capability of the organization. Not reducing significant capacity by laying off employeesV morale and

It is the costing system in which cost is assigned to specific jobs and products. This systems helps…

McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020.

McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Cari Pump (CP) Company manufactures water pumps. An important part of the pump is its electronic component (EC). Cari Pump collects data with the following cost information about the costs of making ECs in 2019 and the expected costs in 2020: Current Costs (2019) Expected Costs (2020) Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if ECs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if ECs are not made Variable manufacturing costs Direct material cost per EC Direct manufacturing labor cost per EC Variable manufacturing cost per batch for setups, Materials handling, and quality control 360,000 850,000 $ 200 60 2,000 360,000 850,000 $ 190 55 1,800 Cari Pump manufactured 9,000 ECs in 2019 in 30 batches of 300 each. In 2020, Cari Pump anticipates needing 10,500 ECs. The ECs would be produced in 60 batches of 175 each. A supplier, Furry Deals has enquired about supplying ECs…
Cari Pump (CP) Company manufactures water pumps. An important part of the pump is its electronic component (EC). Cari Pump collects data with the following cost information about the costs of making ECs in 2019 and the expected costs in 2020: Current Costs (2019) Expected Costs (2020) Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if ECs are not made Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if ECs are not made Variable manufacturing costs Direct material cost per EC Direct manufacturing labor cost per EC Variable manufacturing cost per batch for setups, Materials handling, and quality control 360,000 850,000 $ 200 60 2,000 360,000 850,000 $ 190 55 1,800 Cari Pump manufactured 9,000 ECs in 2019 in 30 batches of 300 each. In 2020, Cari Pump anticipates needing 10,500 ECs. The ECs would be produced in 60 batches of 175 each. A supplier, Furry Deals has enquired about supplying ECs…
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Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
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