Activity cost for Inspecting components | 210000 | |
Divide by Total Sampling hours | 2660 | =60+2600 |
Activity rate for Inspecting components | 79 | per hour |
Option C $79 per hour is correct |
Calculator Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for...
Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. L. Activity Data Inspecting...
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Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from...
In the long-term, the primary objectives of for profit and non-profit entities include: minimize costs and maximize profit (or services) minimize cost and maximize compliance (or services) minimize costs and maximize sale (or services) minimize costs and maximize variable/fixed costs (or services) Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late....
I. Activity Data Activity Cost Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) $ 210,000 $2,454,000 $1,923,000 11. Supplier Data Hydra Parable International Company Unit purchase price $12.00 $10.00 Units purchased 19,000 76,000 Sampling hours 60 2,600 Rework hours 150 3,800 Warranty hours 550 7,000 Suppose that Fame loses $3,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost...
MEMETODOLOMIOOTILBUXUL + a ssignment Assignment in doinvor - Assignment Session Locator Sinprogress-false Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is u sed from a local suppliers Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late Hydra sells the component for $12.00 per un while Parabieses the same component for $10.00. Fame purchases 30% of its components from Parable because of the lower price offers....
37. The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel cost for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution...
Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components. To help assess the...
Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components. To help assess the...
Activity-Based Supplier Costing Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components. To...
Activity-Based Supplier Costing Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components. To...