Homework Answers
| Incremental Analysis | incremental Effect | |||||||
| cost to buy | (1200*420) | -504000 | ||||||
| Cost savings: | ||||||||
| Savings in direct materials (1200*100) | 120000 | |||||||
| Savings in direct labor | (1200*140) | 168000 | ||||||
| Savings in VMOH | (1200*80) | 96000 | ||||||
| Savings in FMOH | (150*40%*1200) | 72000 | ||||||
| total cost savings | 456000 | |||||||
| incremental net cost to buy | -48000 | |||||||
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EN PKINTER VERSION BACK NEXT OURCES Question ent er 20) Notson, Inc. produces several models of...
Additional Brief Exercise 169 Notson, Inc. produces several models of clocks. An outside supplier has offered...
Additional Brief Exercise 169 Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks: Direct materials Direct labor Variable overhead Fixed overhead (40% avoidable) $100 140 80 150 Prepare an incremental analysis which shows the effect of the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number e.g.-45...
Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial...
Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks: Direct materials $100 Direct labor 140 Variable overhead 80 Fixed overhead (40% avoidable) 150 Prepare an incremental analysis which shows the effect of the make-or-buy decision.
27. Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseball Units Sales...
27. Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseball Units Sales Variable costs Fixed costs Net income Yards of leather per unit Profit per unit Contribution margin per unit 2,000 $60,000 24,000 10.000 $26.000 123 $13.00 $18.00 2,500 $25,000 13,750 5.250 $ 6.000 0.30 $2.40 $4.50 Assume that Gallery is able to order an additional 2,500 yards of leather and wishes to maximize its income. Of the additional units it produces, at least 500 of...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
eroblem 3-20 points cale, Inc. owns a machine that produces baskets for the packages the company...
eroblem 3-20 points cale, Inc. owns a machine that produces baskets for the packages the company sets. The con 900 baskets in production each month. The costs of m ica en 14 for dred materials, variable manufacturing ovemead, 52 for direct labor and $5 for food manufacturing overhead. The un is based on the monthly production of 900 baskets The con determined that 30% of the fored manufacturing overhead is avoidable. An outside supplier has offered to sell Cale the...
Exercise 20-05 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The...
Exercise 20-05 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 65% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29,700 curtain rods per year. A supplier offers to make a pair of finials at a...
Exercise 20-5 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The...
Exercise 20-5 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 54% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.92 and $4.64, respectively. Normal production is 26,000 curtain rods per year. A supplier offers to make a pair of finials at a...
Question 4 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rads. The...
Question 4 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rads. The company is currently oacrating at 100% af capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair or finials are $4 and $5, respectively. Narrnal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a...
Exercise 20-05 Pottery Ranch Inc, has been manufacturing its own finials for its curtain rods. The...
Exercise 20-05 Pottery Ranch Inc, has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 69% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 25,400 curtain rods per year. A supplier offers to make a pair of finials at a...
PLEASE HELP! DUE IN FOUR HOURS ): Exercise 20-5 Pottery Ranch Inc. has been manufacturing its own finials for its curtai...
PLEASE HELP! DUE IN FOUR HOURS ):
Exercise 20-5
Pottery Ranch Inc. has been manufacturing its own finials for
its curtain rods. The company is currently operating at 100% of
capacity, and variable manufacturing overhead is charged to
production at the rate of 69% of direct labor cost. The direct
materials and direct labor cost per unit to make a pair of finials
are $3.89 and $5.00, respectively. Normal production is 26,600
curtain rods per year.
A supplier offers to...
Additional Brief Exercise 169 Notson, Inc. produces several models of clocks. An outside supplier has offered to produce the commercial clocks for Notson for $420 each. Notson needs 1,200 clocks annually. Notson has provided the following unit costs for its commercial clocks: Direct materials Direct labor Variable overhead Fixed overhead (40% avoidable) $100 140 80 150 Prepare an incremental analysis which shows the effect of the make-or-buy decision. (Enter negative amounts using either a negative sign preceding the number e.g.-45...
27. Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseball Units Sales Variable costs Fixed costs Net income Yards of leather per unit Profit per unit Contribution margin per unit 2,000 $60,000 24,000 10.000 $26.000 123 $13.00 $18.00 2,500 $25,000 13,750 5.250 $ 6.000 0.30 $2.40 $4.50 Assume that Gallery is able to order an additional 2,500 yards of leather and wishes to maximize its income. Of the additional units it produces, at least 500 of...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
eroblem 3-20 points cale, Inc. owns a machine that produces baskets for the packages the company sets. The con 900 baskets in production each month. The costs of m ica en 14 for dred materials, variable manufacturing ovemead, 52 for direct labor and $5 for food manufacturing overhead. The un is based on the monthly production of 900 baskets The con determined that 30% of the fored manufacturing overhead is avoidable. An outside supplier has offered to sell Cale the...
Exercise 20-05 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 65% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29,700 curtain rods per year. A supplier offers to make a pair of finials at a...
Exercise 20-5 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 54% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.92 and $4.64, respectively. Normal production is 26,000 curtain rods per year. A supplier offers to make a pair of finials at a...
Question 4 Pottery Ranch Inc. has been manufacturing its own finials for its curtain rads. The company is currently oacrating at 100% af capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair or finials are $4 and $5, respectively. Narrnal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a...
Exercise 20-05 Pottery Ranch Inc, has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 69% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 25,400 curtain rods per year. A supplier offers to make a pair of finials at a...
PLEASE HELP! DUE IN FOUR HOURS ):
Exercise 20-5
Pottery Ranch Inc. has been manufacturing its own finials for
its curtain rods. The company is currently operating at 100% of
capacity, and variable manufacturing overhead is charged to
production at the rate of 69% of direct labor cost. The direct
materials and direct labor cost per unit to make a pair of finials
are $3.89 and $5.00, respectively. Normal production is 26,600
curtain rods per year.
A supplier offers to...
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