11-1
Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts.
Item | Case 1 | Case 2 | ||
Sales Revenue | Relevant | Not Relevant | ||
Direct Materials | Relevant | Relevant | ||
Direct labor | Relevant | Not Relevant | ||
Variable manufacturing overhead | Relevant | Not Relevant | ||
Depreciation—Model B100 machine | Not Relevant | Not Relevant | ||
Book value—Model B100 machine | Not Relevant | Not Relevant | ||
Disposal value—Model B100 machine | Not Relevant | Relevant | ||
Market value—Model B300 machine (cost) | Relevant | Relevant | ||
Fixed manufacturing overhead (general) | Not Relevant | Not Relevant | ||
Variable selling expense | Relevant | Not Relevant | ||
Fixed selling expense | Relevant | Not Relevant | ||
General administrative overhead | Relevant | Not Relevant | ||
11-1 Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information...
Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A: The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Model B100 machine will continue to be used to capacity as before, with the new Model...
Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Model B100 machine will continue to be used to capacity as before, with the new Model...
3 Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two Independent decision-making contexts. 5 points Case A: The company chronically has no Idle capacity and the old Model B100 machine is the company's constraint Management is considering purchasing a Model 8300 machine to use in addition to the company's present Model B100 machine. The old Model 8100 machine will continue to be used to capacity as before, with...
Svahn, AB. is a Swedish manufacturer of saling yachts. The company has assembled the information shown below that pertains to two Independent decision-making contexts The company chronically has no idle capacity and the old Model B100 machine is the company's constant Management is considering purchasing Model B300 machine to use in addition to the company's present Model 000 machine. The old Model 5100 machine will continue to be used to capacity as before, with the new Model 300 machine being...
please answer all questions correctly. Thank You Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A: The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Model B100 machine will continue to be used to...
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor- Hours per Unit 0.60 0.20 Annual Production 16,000 units 43,000 units Hubs Sprockets Additional Information about the company follows: a. Hubs require $24 in direct materials per unit, and Sprockets require $19. b. The direct labor wage rate is $16 per hour. C. Hubs are more complex to manufacture than Sprockets and they require special equipment d. The ABC system has the following...
Make or Buy Decision: Zee-Drive Ltd. is a computer manufacturer. One of the items they make is monitors. Zee-Drive has the opportunity to purchase 20,000 monitors from an outside supplier for $197 per unit. One of the company's cost-accounting interns prepared the following schedule of Zee-Drive's cost to produce 20,000 monitors: Total cost of producing 20,000 monitors Unit cost Direct materials $ 2,320,000 $ 116 Direct labor 1,320,000 66 Variable factory overhead 640,000 32 Fixed manufacturing overhead 500,000 25 Fixed...
Make or Buy Decision: Zee-Drive Ltd. is a computer manufacturer. One of the items they make is monitors. Zee-Drive has the opportunity to purchase 16,000 monitors from an outside supplier for $204 per unit. One of the company's cost-accounting interns prepared the following schedule of Zee-Drive's cost to produce 16,000 monitors: Total cost of producing 16,000 monitors Unit cost Direct materials $ 1,792,000 $ 112 Direct labor 1,152,000 72 Variable factory overhead 512,000 32 Fixed manufacturing overhead 448,000 28 Fixed...
Case 4 A Saudi Company has 8,000 machine hours available to use to produce either Product A or Product B. The cost accounting department developed the following unit information for each of the products Product A Product B Sales price SR57 SR71 Direct materials 19 21 Direct labor 15 14 Variable manufacturing overhead Fixed manufacturing overhead Machine hours required 8 12 3 6 6 12 Management desires to make a decision regarding which product to produce in order to maximize...
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Products AB C $15.25 $11.15 $11.95 20.35 28.35 34.55 5.25 3.65 3.55 27.45 35.75 27.55 $68.30 $78.90 $77.60 D $11.55 41.35 4.15 38.15 $95.20 Additional data concerning these products Dure listed below. А Grinding minutes per unit 3.80 Selling price per unit $77.05 Variable selling cost per unit $ 3.15 Monthly demand in units 4,380 Products B 5.30 4.30 $94.45 $88.35 $ 2.15 $ 4.25 4,380 3,380...