Homework Answers
Answer
- Correct Answer = Option ‘B’ Per Tire cost would be INCREASED by $ 0.05 per unit if purchased from the outside supplier.
- Current ‘relevant’ cost to product the tire
=$ 0.25 direct material + $ 0.80 direct labor + $ 0.30 variable overhead
= $ 1.35 per unit - Cost per tire if unit is purchased = $ 1.40
- Hence, per tire cost would increase by $ 0.05 per tier ($1.40 – 1.35)
Add Answer to:
Lightning Remote Cars manufactures remote control cars for children. Historically, Lightning Remote Cars has manufactured their...
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars....
Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars. Each car sells for $3.50 The cost of each unit follows: Materials $ 0.80 Labor 0.70 Variable overhead 0.50 Fixed overhead ($20,200 per month, 20,200 units per month) 1.00 Total costs per unit $ 3.00 One of Rutkey's regular customers asked the company to fill a special order of 800 units at a selling price of $2.50 per unit. Rutkey's can fill the order...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Direct materials $3.10...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Direct materials $3.10...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Direct materials $3.10...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an...
Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move's other customers, and existing sales will not be affected. Smooth Move normally produces 82,000 units but plans to produce and sell only 65,000 in the coming year. The normal sales price is $12 per unit. Unit cost information is as follows: Direct materials $3.10...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs Total costs $43,000 10,500 30,500 19,000 $103,000 It is estimated that 7% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier. W.T. Ginsburg Engine Company has the option of purchasing the part from an...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,040 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs Total costs $41,000 11,500 32,500 21,000 $106,000 It is estimated that 9% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier. W.T. Ginsburg Engine Company has the option of purchasing the part from an...
Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as...
Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follws Direct materials Direct labor Inspecting products Providing power 240,000 60,000 30,000 40,000 60,000 Setting up equipment Moving materials 600,000 production costs; moving materials costs and setting up equipment costs will only be S0% of the production costs: and supervison costs will amount to only 40% of the production amount. An outside supplier has offered to sell the component for osso. What is the...
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $5.00 Variable...
Izzy Ice Cream has the following price and cost information: Price per 2-scoop sundae $5.00 Variable cost per sundae: Ingredients 1.35 Direct labor 0.45 Overhead 0.20 Fixed cost per month $7,500 Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $15,000. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price decreases by $0.50. b. Fixed costs decrease by...
Chapter 6 Assignment Saved Izzy Ice Cream has the following price and cost information: $ 5.00...
Chapter 6 Assignment Saved Izzy Ice Cream has the following price and cost information: $ 5.00 points Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month 1.35 0.45 0.20 $6,000 eBook Print Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $12,000. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs Total costs $43,000 10,500 30,500 19,000 $103,000 It is estimated that 7% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier. W.T. Ginsburg Engine Company has the option of purchasing the part from an...
W.T. Ginsburg Engine Company manufactures part ACT31107 used in several of its engine models. Monthly production costs for 1,040 units are as follows: Direct materials Direct labor Variable overhead costs Fixed overhead costs Total costs $41,000 11,500 32,500 21,000 $106,000 It is estimated that 9% of the fixed overhead costs assigned to ACT31107 will no longer be incurred if the company purchases ACT31107 from the outside supplier. W.T. Ginsburg Engine Company has the option of purchasing the part from an...
Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follws Direct materials Direct labor Inspecting products Providing power 240,000 60,000 30,000 40,000 60,000 Setting up equipment Moving materials 600,000 production costs; moving materials costs and setting up equipment costs will only be S0% of the production costs: and supervison costs will amount to only 40% of the production amount. An outside supplier has offered to sell the component for osso. What is the...
Chapter 6 Assignment Saved Izzy Ice Cream has the following price and cost information: $ 5.00 points Price per 2-scoop sundae Variable cost per sundae: Ingredients Direct labor Overhead Fixed cost per month 1.35 0.45 0.20 $6,000 eBook Print Required: 1. Determine Izzy's break-even point in units and sales dollars. 2. Determine how many sundaes must be sold to generate a profit of $12,000. 3. Calculate Izzy's new break-even point for each of the following independent scenarios: a. Sales price...
Most questions answered within 3 hours.
-
It is essential that organizational leaders understand the
competitive, financial, and strategic advantages that can result...
asked 6 minutes ago -
Biological oxidation of phenylacetic acid is inhibited by
propionic acid present in wastewater. The following data...
asked 4 minutes ago -
Ziegler-Natta Catalysts have been successfully used to
polymerize the following monomers: (select all that apply)
a....
asked 7 minutes ago -
User documentation _____.
allows users to prepare overall documentation, such as process
descriptions and report layouts,...
asked 15 minutes ago -
A pilot flying low and slow drops a weight; it takes 2.4 s to
hit the...
asked 22 minutes ago -
LSAT test scores are normally distributed with a mean of 157 and
a standard deviation of...
asked 25 minutes ago -
You are testing a batch of pills. The manufacturer claims that
the standard deviation of their...
asked 24 minutes ago -
2.00 × 10^20 electrons flow through a cross section of a
3.60-mm-diameter iron wire in 5.00...
asked 29 minutes ago -
By exerting an effort of 115 pounds, you move a 300–pound crate
up an inclined plane...
asked 32 minutes ago -
A projectile is launched horizontally with an initial speed 20
m/s. After 4 seconds how far...
asked 38 minutes ago -
A pipe is open on both ends. The diameter of the pipe is 5.0 cm
and...
asked 51 minutes ago -
How many times more light does a 16-inch diameter telescope
mirror gather than your 2-inch telescope?
asked 53 minutes ago