Mack’s guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the 100...
Mack’s guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $250. Because some of the production process is automated, each guitar only requires 10 labor hours. Each employee works an average 160 hours per month. Labor is paid at $10/hour, materials cost is $40/guitar, and overhead is $4,000.
- Calculate the labor and multifactor productivity ratios.
- After some study, the operations manager Darren Funk recommends three options to improve the company’s multifactor productivity: (1) increase the sales price by 10 percent, (2) improve quality so that only 10 percent are defective, or (3) reduce labor, material, and overhead costs by 10 percent. Which option has the greatest impact on the multifactor productivity measure?
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Mack’s guitar fabrication shop produces low-cost, highly durable
guitars for beginners. Typically, out of the 100...
Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the...
Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $260. Because some of the production process is automated, each guitar only requires 8 labor hours. Each employee works an average of 160 hours...
Accounting Homework please help Question 1 Vaughn Guitar Company makes high-quality customized guitars. Vaughn uses a...
Accounting Homework please help
Question 1 Vaughn Guitar Company makes high-quality customized guitars. Vaughn uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $331,200 and that 20,700 direct labor hours would be worked. At year-end, Anthony, the company's founder and CEO, gives you the following information regarding Vaughn's operations. 1. The beginning balances...
4-24 Product cost flows, journal entries, T-accounts (LO 3, 4) Oberti Guitar Company makes high-quality customized...
4-24 Product cost flows, journal entries, T-accounts (LO 3, 4) Oberti Guitar Company makes high-quality customized guitars. Oberti uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor urs. At the beginning of the year, the company estimated that total manufacturing ove d costs would be $300,000 and that 20,000 direct labor hours would be w vear-end, Anthony, the company's founder and CEO give hy s founder and CEO, gives you...
Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC Swasey Fabrication, Inc., manufactures...
Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data: In Cutting, all direct materials are added at the beginning of the process. Beginning work in process consisted of 41,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct...
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for...
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data: In Cutting, all direct materials are added at the beginning of the process. Beginning work in process consisted of 41,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000;...
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for...
FIFO Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data: In Cutting, all direct materials are added at the beginning of the process. Beginning work in process consisted of 40,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,215,000;...
question 4: Marceline Co. makes made to order guitars. One of the jobs Marceline Co. worked on during the month w...
question 4: Marceline Co. makes made to order guitars. One of the jobs Marceline Co. worked on during the month was ob Vamp, which used $1,200 in direct materials, 5210 in direct labor costs(paid at $15 an hour) and 125 machine hours. They use normal costing to help track costs for the guitar orders they fill and use machine hours as their allocation base. At the beginning of the month, Marceline Co. believes they will use 1,500 direct labor hours,...
Part II: Dana Boar, controller of Digital Electronics Canada, developed the figures requested by...
Part II: Dana Boar, controller of Digital Electronics Canada, developed the figures requested by her boss and president of Digital Electronics Canada, Hans Fritz. The numbers allowed her to see how the projected sales volume for 2017 related to breakeven, and examine the relative profitability of the two products, DELTA1 and DELTA2. Boar thought the figures were OK as far has her analysis went, but she began to wonder about some of the assumptions built into her calculations. For example,...
Part II: Dana Boar, controller of Digital Electronics Canada, developed the figures requested by her boss...
Part II: Dana Boar, controller of Digital Electronics Canada, developed the figures requested by her boss and president of Digital Electronics Canada, Hans Fritz. The numbers allowed her to see how the projected sales volume for 2017 related to breakeven, and examine the relative profitability of the two products, DELTA1 and DELTA2. Boar thought the figures were OK as far has her analysis went, but she began to wonder about some of the assumptions built into her calculations. For example,...
CORRECTED: ABC ORIGINAL PROBLEM DATA (18I Excel File: CHECK FIGURES: AX40 Traditional Unit Cost: $62.75 EX90...
CORRECTED: ABC ORIGINAL PROBLEM DATA (18I Excel File: CHECK FIGURES: AX40 Traditional Unit Cost: $62.75 EX90 ABC Unit Cost: $116.80 For several years, Adria Manufacturing has produced a single product called AX40. Then two years ago, the company automated a portion of its plant and at the same time introduced a second product called EX90 which has become increasingly popular. The EX90 is a more complex product, requiring one hour of direct labor time per unit to manufacture and extensive...
Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $260. Because some of the production process is automated, each guitar only requires 8 labor hours. Each employee works an average of 160 hours...
Accounting Homework please help
Question 1 Vaughn Guitar Company makes high-quality customized guitars. Vaughn uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor hours. At the beginning of the year, the company estimated that total manufacturing overhead costs would be $331,200 and that 20,700 direct labor hours would be worked. At year-end, Anthony, the company's founder and CEO, gives you the following information regarding Vaughn's operations. 1. The beginning balances...
4-24 Product cost flows, journal entries, T-accounts (LO 3, 4) Oberti Guitar Company makes high-quality customized guitars. Oberti uses a job order costing system. Because the guitars are handmade, the company applies overhead based on direct labor urs. At the beginning of the year, the company estimated that total manufacturing ove d costs would be $300,000 and that 20,000 direct labor hours would be w vear-end, Anthony, the company's founder and CEO give hy s founder and CEO, gives you...
question 4: Marceline Co. makes made to order guitars. One of the jobs Marceline Co. worked on during the month was ob Vamp, which used $1,200 in direct materials, 5210 in direct labor costs(paid at $15 an hour) and 125 machine hours. They use normal costing to help track costs for the guitar orders they fill and use machine hours as their allocation base. At the beginning of the month, Marceline Co. believes they will use 1,500 direct labor hours,...
CORRECTED: ABC ORIGINAL PROBLEM DATA (18I Excel File: CHECK FIGURES: AX40 Traditional Unit Cost: $62.75 EX90 ABC Unit Cost: $116.80 For several years, Adria Manufacturing has produced a single product called AX40. Then two years ago, the company automated a portion of its plant and at the same time introduced a second product called EX90 which has become increasingly popular. The EX90 is a more complex product, requiring one hour of direct labor time per unit to manufacture and extensive...
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