Homework Answers
The answer has been presented in the supporting sheet. For first part answer is B. Yes, increase in income by $30000 and for second part answer is B $25000 increase. For detailed answers refer to the supporting sheet.
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Colortrigon Company makes a variety of paper products. One product is 30 lb copier paper, packaged...
12. Galesburg Company makes a variety of paper products. One product is 20 pound copier paper,...
12. Galesburg Company makes a variety of paper products. One product is 20 pound copier paper, packaged 5,000 sheets to a box. One box normally sells for $18. A large bank offered to purchase 3,000 boxes at $14 per box. Costs per box are as follows. 8.00 GALESBURG COMPANY COSTS PER BOX FOR 20 POUND COPIER PAPER Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3.00 1.00 5.00 No variable marketing costs would be incurred on the order...
Manganese Company makes frames. A customer wants to place a special order for 750 frames in...
Manganese Company makes frames. A customer wants to place a special order for 750 frames in green with the company logo painted on the frame, to be priced at $60 each. Normally, Manganese would charge $100 per frame for this type of order. Manganese figures that wood and glass will cost $20 per frame, variable overhead (machining, electricity) is $5 per frame, direct labor is $10 per frame, nd one setup will be required at $1,500 per setup. The set-up...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are s...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. 8.00 MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
X Company currently makes a part and is considering buying it from a company that has...
X Company currently makes a part and is considering buying it from a company that has offered to supply it for $20.16 per unit. This year, per-unit production costs to produce 19,000 units were: $8.50 Direct materials Direct labor Overhead Total 6.80 5.40 $20.70 $60,800 of the total overhead costs were variable. $25,080 of the fixed overhead costs are avoidable if X Company buys the part. If the company buys the part, the resources that are used to make it...
28 Hill Fabricators manufactures a variety of parts that the company can use to produce metal...
28
Hill Fabricators manufactures a variety of parts that the company can use to produce metal stud fixtures. The M2 part is a popular universal part used in the production of several other parts at its manufacturing facility in Ohio. Al a recent meeting, the managerial accountant reported that 11% of its fixed overhead cots assigned to the M2 part will not continue if Hill Fabricators decides to outsource the production of the M2 part at $43 per unit to...
Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty...
Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 34,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.10 per box, the chain has offered just $3.40 per box. Sequoia can accommodate the special order without affecting...
Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty...
Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 85 percent of capacity. A chain of drugstores has offered to buy 32,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $5.90 per box, the chain has offered just $2.80 per box. Sequoia can accommodate the special order without affecting...
Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is...
Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90% capacity. A chain of drugstores has offered to buy 30,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.00 per box, the chain has offered just $3.10 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a...
UTES, HUIC VILICU QUESTION 11 Figure 13-7. company makes telephones. Currently, Ring makes all components of...
UTES, HUIC VILICU QUESTION 11 Figure 13-7. company makes telephones. Currently, Ring makes all components of the telephones in-house an outside company has offered to supply one component, part number X76, for $12 each. Ring uses 22.000 of these components per year. Costs of X76 are as follows: Direct materials $3.00 Direct labor $1.50 Variable overhead $2.75 Fixed overhead $5.00 Refer to Figure 13-7. Assume that all of the fixed overhead is allocated and cannot be avoided. Should Ring purchase...
12. Galesburg Company makes a variety of paper products. One product is 20 pound copier paper, packaged 5,000 sheets to a box. One box normally sells for $18. A large bank offered to purchase 3,000 boxes at $14 per box. Costs per box are as follows. 8.00 GALESBURG COMPANY COSTS PER BOX FOR 20 POUND COPIER PAPER Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3.00 1.00 5.00 No variable marketing costs would be incurred on the order...
Manganese Company makes frames. A customer wants to place a special order for 750 frames in green with the company logo painted on the frame, to be priced at $60 each. Normally, Manganese would charge $100 per frame for this type of order. Manganese figures that wood and glass will cost $20 per frame, variable overhead (machining, electricity) is $5 per frame, direct labor is $10 per frame, nd one setup will be required at $1,500 per setup. The set-up...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials 8.00 Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
19. Mattoon Company uses part 65A in the production of color printers. Unit manufacturing costs of part 65A are shown below. 8.00 MATTOON COMPANY UNIT COSTS INCURRED FOR PRODUCING PART 65A Direct materials Direct labor 2.00 Variable manufacturing overhead 1.00 Fixed manufacturing overhead 4.00 Mattoon uses 100.000 units of 65A per year. Joliet, Inc. has offered to sell Mattoon 100,000 units of 65A per year for 512 per unit. If the company buys the part from Joliet, fixed manufacturing overhead...
X Company currently makes a part and is considering buying it from a company that has offered to supply it for $20.16 per unit. This year, per-unit production costs to produce 19,000 units were: $8.50 Direct materials Direct labor Overhead Total 6.80 5.40 $20.70 $60,800 of the total overhead costs were variable. $25,080 of the fixed overhead costs are avoidable if X Company buys the part. If the company buys the part, the resources that are used to make it...
28
Hill Fabricators manufactures a variety of parts that the company can use to produce metal stud fixtures. The M2 part is a popular universal part used in the production of several other parts at its manufacturing facility in Ohio. Al a recent meeting, the managerial accountant reported that 11% of its fixed overhead cots assigned to the M2 part will not continue if Hill Fabricators decides to outsource the production of the M2 part at $43 per unit to...
UTES, HUIC VILICU QUESTION 11 Figure 13-7. company makes telephones. Currently, Ring makes all components of the telephones in-house an outside company has offered to supply one component, part number X76, for $12 each. Ring uses 22.000 of these components per year. Costs of X76 are as follows: Direct materials $3.00 Direct labor $1.50 Variable overhead $2.75 Fixed overhead $5.00 Refer to Figure 13-7. Assume that all of the fixed overhead is allocated and cannot be avoided. Should Ring purchase...
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