Homework Answers
Solution 1:
| Relevant cost per unit | |
| Direct materials | $28.00 |
| Direct labor | $18.00 |
| Variable overhead | $16.00 |
| Relevant cost | $62.00 |
Solution 2:
Increase or decrease in profit on producing the unit internally = Cost to make -cost to buy = (2000*$62) - $120,000 = $4,000 decrease
Add Answer to:
Required information (The following information applies to the questions displayed below) Each of the following situations...
11-30 Relevant Cost Exercises Each of the following situations is independent: a. Make or Buy Ter...
11-30 Relevant Cost Exercises Each of the following situations is independent: a. Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Walters is considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000. If Terry does not purchase these parts from the subcontractor, it must continue to produce them in-house with these costs: Cost per Unit Direct materials $28 Direct labor 18 Variable overhead 16 Allocated fixed overhead 4 Required 1....
Required information The following information applies to the questions displayed below. Cane Com...
Required information The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta $10 21 Direct materials Direct labor Variable manufacturing...
Required information (The following information applies to the questions displayed below.] Martinez Company's relevant range of...
Required information (The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor $6.70 $4.20 $1.40 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $4.00 $3.70 $2.10 $1.10 $0.55 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below.} Martinez Company's relevant range of...
Required information [The following information applies to the questions displayed below.} Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $6.10 $3.60 $1.40 $4.00 $3.10 $2.10 $1.10 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.55 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below) Martinez Company's relevant range of...
Required information [The following information applies to the questions displayed below) Martinez Company's relevant range of production is 7,500 units to 12.500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed nistrative expense Sales commissions Variable administrative expense Average Cost Per Unit $5.00 $2.50 $1.40 $4.00 $2.09 $2.20 $1.29 50.45 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of...
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $1.00 $0.50 Required: 1. For financial accounting purposes, what is the total...
1 art 1 of 1 Required information The following information applies to the questions displayed below.)...
1 art 1 of 1 Required information The following information applies to the questions displayed below.) Martinez Company's relevant range of production is 7500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Book Avera Cost Per Unit $5.60 $3.10 $1.40 $4.00 $2.60 $2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed adeinistrative expense Sales commissions Variable administrative expense eferences $1.0 30.45 Required: 1....
this is a multi-part question Required information The following information applies to the questions displayed below.]...
this is a multi-part
question
Required information The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows Direct materials: 5 pounds at $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hour $ 95 Total standard cost per unit The planning budget for...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 42 Beta $ 21 Direct materials Direct labor...
Part B of 8 Required information [The following information applies to the questions displayed below) Sweeten...
Part B of 8 Required information [The following information applies to the questions displayed below) Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q Job P was completed and sold by the end of March and Job was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available...
Required information The following information applies to the questions displayed below. Cane Company manufactures two products called Alpha and Beta that sell for $130 and $90, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 102,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta $10 21 Direct materials Direct labor Variable manufacturing...
Required information (The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor $6.70 $4.20 $1.40 Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $4.00 $3.70 $2.10 $1.10 $0.55 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below.} Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct materials $6.10 $3.60 $1.40 $4.00 $3.10 $2.10 $1.10 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.55 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below) Martinez Company's relevant range of production is 7,500 units to 12.500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed nistrative expense Sales commissions Variable administrative expense Average Cost Per Unit $5.00 $2.50 $1.40 $4.00 $2.09 $2.20 $1.29 50.45 Required: 1. For financial accounting purposes, what is the...
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 $2.00 $1.00 $0.50 Required: 1. For financial accounting purposes, what is the total...
1 art 1 of 1 Required information The following information applies to the questions displayed below.) Martinez Company's relevant range of production is 7500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Book Avera Cost Per Unit $5.60 $3.10 $1.40 $4.00 $2.60 $2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed adeinistrative expense Sales commissions Variable administrative expense eferences $1.0 30.45 Required: 1....
this is a multi-part
question
Required information The following information applies to the questions displayed below.] Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows Direct materials: 5 pounds at $7 per pound Direct labor: 3 hours at $16 per hour 48 Variable overhead: 3 hours at $4 12 per hour $ 95 Total standard cost per unit The planning budget for...
Required information [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha $ 42 Beta $ 21 Direct materials Direct labor...
Part B of 8 Required information [The following information applies to the questions displayed below) Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q Job P was completed and sold by the end of March and Job was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available...
Most questions answered within 3 hours.
-
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 12 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 19 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 20 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 20 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 39 minutes ago -
Which of the following is an example of a screen against adverse
selection? [Mark All That...
asked 38 minutes ago -
A worker drives a 0.560 kg spike into a rail tie with a 2.76 kg
sledgehammer....
asked 43 minutes ago -
Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
asked 46 minutes ago -
Suppose a firm has a retention ratio of 58 percent and net
income of $9.2 million....
asked 49 minutes ago -
1.A greater horizontal separation between the shallow and higher depth epicenters is indicative of:
A a...
asked 50 minutes ago -
(1). Which of the following molecules is most soluble
in hexane, C6H14?
NH3
CH3NH2
CH3OH
CH3CH3...
asked 48 minutes ago -
Calculate the speed of sound in water vapour (only) at 20 bar
and 350oC utilizing (a)...
asked 1 hour ago