Given the following data and an estimated demand of 10,000 units
annually:
MAKE
BUY
PROCESS A...
Given the following data and an estimated demand of 10,000 units
annually:
MAKE
BUY
PROCESS A
PROCESS B
Variable costs per unit
$50
$52
Annual fixed costs
$40,000
$36,000
Transportation cost per unit
$2
a. Determine the total annual cost of making and of buying, and
make a decision on which to select.
b. If for an expenditure of $8,000 annually you can lower
the
Use the information below to
answer the following question(s):
Cruise Company produces a part that is...
Use the information below to
answer the following question(s):
Cruise Company produces a part that is
used in the manufacture of one of its products. The unit
manufacturing costs of this part, assuming a production level of
6,000 units, are as follows:
Direct materials
$4.00
Direct labour
$4.00
Variable manufacturing overhead
$3.00
Fixed manufacturing overhead
$1.00
Total cost
$12.00
The fixed overhead costs are
unavoidable.
Assuming Cruise Company can purchase 6,000 units of the part
from Suri Company for $17...
Which inventory policy should a company choose and why? (Budget
Scenario A, B, or C)
Budget...
Which inventory policy should a company choose and why? (Budget
Scenario A, B, or C)
Budget Scenario A
January
February
March
Total
Sales ($40 per unit)
$3,600,000.00
$3,200,000.00
$2,800,000.00
$9,600,000.00
Less : Cost of goods sold ($15 per unit)
$1,350,000.00
$1,200,000.00
$1,050,000.00
$3,600,000.00
Gross Margin
$2,250,000.00
$2,000,000.00
$1,750,000.00
$6,000,000.00
Less : Operating Expenses
Wages ($15 per unit)
$1,350,000.00
$1,200,000.00
$1,050,000.00
$3,600,000.00
Rent
$37,000.00
$37,000.00
$37,000.00
$111,000.00
Advertising
$4,000.00
$4,000.00
$4,000.00
$12,000.00
Depreciation
$6,000.00
$6,000.00
$6,000.00
$18,000.00
Operating Income
$853,000.00
$753,000.00...
Make-or-Buy, Traditional Analysis
Morrill Company produces two different types of gauges: a
density gauge and a...
Make-or-Buy, Traditional Analysis
Morrill Company produces two different types of gauges: a
density gauge and a thickness gauge. The segmented income statement
for a typical quarter follows.
Density
Gauge
Thickness
Gauge
Total
Sales
$
187,500
$
100,000
$
287,500
Less variable expenses
100,000
57,500
157,500
Contribution margin
$
87,500
$
42,500
$
130,000
Less direct fixed expenses*
25,000
47,500
72,500
Segment margin
$
62,500
$
(5,000)
$
57,500
Less common fixed expenses
37,500
Operating income
$
20,000
* Includes depreciation....
1. The Hunter Company uses the high-low method to estimate the
cost function. Year-to-date information for...
1. The Hunter Company uses the high-low method to estimate the
cost function. Year-to-date information for 2020 is provided below:
Machine-hours Labor Costs January 400 $10,000 February 280 $ 6,800
March 380 $10,050 April 250 $ 7,300 May 320 $ 9,525 What can Hunter
expect the total cost to be when 300 machine-hours are used? Group
of answer choices $9,406.25 $7,450.00 $8,200.00 $7,233.33
2. Southwestern Company needs 1,000 motors in its manufacture of
automobiles. It can buy the motors from...
Amos Rubber company manufactures tires. They reported the
following information from their operations last period:
Cost...
Amos Rubber company manufactures tires. They reported the
following information from their operations last period:
Cost of Direct Materials used in production:
$35,000
Cost of Direct Labor wages:
$40,000
Variable Manufacturing Overhead:
$30,000
Fixed Manufacturing Overhead:
$75,000
Total units produced and sold:
50,000
Under absorption costing, the per-unit cost is greater than the
variable per-unit cost by how much?
a. $1.50
b. $2.10
c. $2.75
d. $3.10
Wilcher’s construction company reported the following
information from their operations last year:
Direct...
Outsourcing (Make-or-Buy) Decision
Mountain Air Limited manufactures a line of room air purifiers.
Management is currently...
Outsourcing (Make-or-Buy) Decision
Mountain Air Limited manufactures a line of room air purifiers.
Management is currently evaluating the possible production of an
air purifier for automobiles. Based on an annual volume of 10,000
units, the predicted cost per unit of an auto air purifier
follows.
Direct materials
$8.00
Direct labor
1.50
Factory overhead
9.00
Total
$18.50
These cost predictions include $60,000 in facility-level fixed
factory overhead averaged over 10,000 units.
One of the component parts of the auto air purifier...
The total applied MOH for Causeway Manufacturing Company this
year is $182,000. At the end of...
The total applied MOH for Causeway Manufacturing Company this
year is $182,000. At the end of the year, the actual MOH is
$189,000. We would say the MOH is:
Group of answer choices
under-applied by $7,000
under-applied by $189,000
over-applied by $189,000
over-applied by $7,000
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Question 263 pts
Pure Wood BookCase Company sells their product for $500. The
unit variable cost to make one of their bookcases is $300. The
contribution margin ratio is:
Group of answer...
The following questions about els based on the information
provided. The PC Inc. decides to make...
The following questions about els based on the information
provided. The PC Inc. decides to make circuits boards for its
computer assembly. The following information is available.
Annual Demand, units/year:
10000
Set up Cost Per Production Run:
100
Annual Carrying Costs, as of Unit Cost:
0.20
Unit Costs, manufacturing:
54
Daily Production (in units):
50
Lead Time (days):
1
Safety Stock:
0
Days of a Calendar Year:
250
a.
the annual inventory carrying costs are not (in units):
1,039
b....