Homework Answers
Answer: D. $2.40 per jar
Explanation:
The relevant cost per jar is $2.40. All avoidable costs are relevant for this decision.
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Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging....
10) Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for...
10) Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars: $0.56 0.11 0.24 Direct materials Direct labor Unit-related support costs Batch-related support costs Product-sustaining support costs Facility-sustaining support costs Total cost per jar 0.30 0.53 0.56 $2.3 The relevant cost per jar is...
Roberta, Inc., manufactures elliptical machines for several well-known companies. The machines differ significantly in their complexity...
Roberta, Inc., manufactures elliptical machines for several
well-known companies. The machines differ significantly in their
complexity and their manufacturing batch sizes. The following costs
were incurred in 2017:
Requirement 1. Classify each of the preceding
costs as output unit-level, batch-level, product-sustaining, or
facility-sustaining. Explain each answer (answer options
are in bold on the cost-type row pick one).
Cost Item
Cost Type
a. Indirect manufacturing labor costs such as
supervision that supports direct manufacturing labor,
$935,000
(Batch Level, Facility-sustaining, Output unit-level,...
Holliston Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at...
Holliston Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Holliston aggregates all operating costs of $1,275,000 into a single overhead cost pool. Holliston calculates a rate per test-hour of $15 ($1,275,000 / 85,000 total test-hours). HT uses 60,000 test-hours, and ST uses 25,000 test-hours. Gary Sarsfield, Holliston's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing...
Roberta, Inc., manufactures elliptical machines for several well-known companies. The machines differ significantly in their complexity...
Roberta, Inc., manufactures elliptical machines for several well-known companies. The machines differ significantly in their complexity and their manufacturing batch sizes. The following costs were incurred in 2017: (Click the icon to view the costs.) Read the requirements. - X Х i Requirements 1. Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or facility-sustaining. Explain each answer. 2. Consider two types of elliptical machines made by Roberta, Inc. One machine, designed for professional use, is complex to...
10) Genent's Preserves currently makes jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars: $0.56 0.11 0.24 Direct materials Direct labor Unit-related support costs Batch-related support costs Product-sustaining support costs Facility-sustaining support costs Total cost per jar 0.30 0.53 0.56 $2.3 The relevant cost per jar is...
Roberta, Inc., manufactures elliptical machines for several
well-known companies. The machines differ significantly in their
complexity and their manufacturing batch sizes. The following costs
were incurred in 2017:
Requirement 1. Classify each of the preceding
costs as output unit-level, batch-level, product-sustaining, or
facility-sustaining. Explain each answer (answer options
are in bold on the cost-type row pick one).
Cost Item
Cost Type
a. Indirect manufacturing labor costs such as
supervision that supports direct manufacturing labor,
$935,000
(Batch Level, Facility-sustaining, Output unit-level,...
Holliston Test Laboratories does heat testing (HT) and stress testing (ST) on materials and operates at capacity. Under its current simple costing system, Holliston aggregates all operating costs of $1,275,000 into a single overhead cost pool. Holliston calculates a rate per test-hour of $15 ($1,275,000 / 85,000 total test-hours). HT uses 60,000 test-hours, and ST uses 25,000 test-hours. Gary Sarsfield, Holliston's controller, believes that there is enough variation in test procedures and cost structures to establish separate costing and billing...
Roberta, Inc., manufactures elliptical machines for several well-known companies. The machines differ significantly in their complexity and their manufacturing batch sizes. The following costs were incurred in 2017: (Click the icon to view the costs.) Read the requirements. - X Х i Requirements 1. Classify each of the preceding costs as output unit-level, batch-level, product-sustaining, or facility-sustaining. Explain each answer. 2. Consider two types of elliptical machines made by Roberta, Inc. One machine, designed for professional use, is complex to...
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