If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal places) _____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider? (Round off your final answer to 3 decimal places)
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_____ 1. If Moonton Company instructed Northern Vale Division to supply Iron Hooks to Mooniyan Division, how
much is the maximum transfer price that they can consider? (Round off your final answer to 3 decimal
places)
_____ 2. Continuing from Question No.1, how much is the minimum transfer price that they can consider?
(Round off your final answer to 3 decimal places)
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- A manufacturing company, Mani Co, has two divisions: Division EX and Division YX. Both divisions make a single standardised product. Division EX makes component TEX, which is supplied to both Division YX and external customers. Division YX makes product YAS using one unit of component TEX and other materials. It then sells the completed product YAS to external customers. To date, Division YX has always bought component TEX from Division EX. The following information is available: Division EX Division YX $ $ Selling price 40 96 Direct materials: Component TEX (40) Direct materials (12) (17) Direct labour (6) (9) Variable overheads (2) (3) Selling and distribution costs (4) (1) Contribution per unit before fixed costs 16 26 Annual fixed costs $500,000 $200,000 Annual external demand (units) 160,000 120,000 Capacity of plant 300,000 130,000 Division EX charges the same price for…D Incorporated operates three divisions in their company. Division 1 manufactures Product X, Division 2 manufactures Product Y while Division 3 manufactures Product Z. Each Unit of Product Y requires two units of Product X while each unit of Product Z requires 3 units of Product Y. Costs related to these products are as follows: Product X Product Y Product Z Selling Price 15 per unit 75 per unit 500 per unit Direct Materials 4 per unit 20 per unit 180 per unit Direct Labor 3 per unit 25 per unit 100 per unit Variable Factor Overhead 2 per unit 10 per unit 50 per unit Fixed Overhead (at normal capacity) 1 per unit 5 per unit 30 per unit Variable Selling and Admin. Expense 0.50 per unit 2 per unit 10 per unit Fixed Selling and Admin Expense 50,000 annually 50,000 annually 50,000 annually Annual Production and Sales 200,000 units 25,000 units 1,000 units Normal Capacity 275,000 units…What is the cost per equivalent unit for conversion cost using FIFO? Lezdodis corporation manufactures a product in three departments. department are: Work Data related to the second in process, beg. (75% 1,400 u conversion cost) Units received from Dep't. 1 Units transferred to Dep't 3 Work in process, end (60% material, 1,000 u 30% conversion cost) 4,600 u 5,000 u Production costs: Work in process, beg Cost from Dep't 1 Direct Materials P34,842 70,380 20,440 17,526 35,052 Direct labor Factory Overhead
- Pix Company operates 20 injection molding machines in the production of tool boxes of four different sizes, named the Apprentice, the Handyman, the Journeyman, and the Professional.Classify each of the following costs as unit-level, batch-level, product-level, or facility-level. Powdered raw plastic. Answer 1Choose...Unit-LevelFacility-LevelProduct-LevelBatch-Level Dies for casting plastic components. Answer 2Choose...Unit-LevelFacility-LevelProduct-LevelBatch-Level First-shift supervisor’s salary. Answer 3Choose...Unit-LevelFacility-LevelProduct-LevelBatch-Level Depreciation on injection molding machines (assume units-of-activity depreciation). Changing dies on machines. Answer 4A company processes raw material into Products R, B, T and D. Products R, B and T are joint products and D is classified as a by-product. In process 1, 50 000 kg of material will be processed at a cost of R220 600 worth of material, R40 500 labour and R24 500 overheads. After the basic processing in process 1, thirty percent of the input is transferred to process B. In Process B additional costs of R25 400 are incurred and product B (from process B) can then be sold for R28 per kg. They transfer 60% of the original material input (from process 1) to process 2 and then the remainder to Process D. The products in process D are considered a by-product (By-product D) and have a sales price of R6 per kilogram. The cost involved with the selling of the by-product is R7 000 in total. The business account for this by crediting the net market value of by-products produced to the general production costs. In process 2 the materials processed further at a cost of R21 200. They then…A Chemical Company manufactures joint products Pep and Vim, and a by product Zest. Costs are assigned to the joint products by the market value method, which considers further processing costs in subsequent operations. For allocating cost to the by-product, the market value or reversal cost method is used. Total manufacturing costs for 10,000 units were P172,000 during the quarter. Production and cost data follow: Pep Vim Zest Unit Produced 5000 4000 1000 Sales price per unit 50 40 5 Further processing cost per unit 10 5 0 Selling and adm. Expense per unit 0 0 2 operating profit per unit 0 0 1 Required: The gross profit for pep is The value of Zest to deducted from the joint cost is
- Han Solo Company makes three products in a single facility. These products have the following unit. product costs: Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Unit product Cost A Products B $ 10.90 $ 15.80 $ 8.00 12.50 12.60 $9.90 2.40 1.20 1.40 11.60 7.20 7.80 $37.40 $ 36.80 $ 27.10 Additional data concerning these products are listed below. Minutes per unit Selling price per unit Variable selling cost per unit Month demands in units A Products B C 2.00 1.00 0.50 $ 55.80 $ 54.60 $ 43.10 $ 2.10 2,000 $ 1.40 1,000 $ 1.90 3,000 The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. A. Provide an optimal production plan for the Han Solo Company (i.e. how many units of each product should be produced). B. Calculate what the maximum profit would be under your optimal production plan.Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.60 hours 0.60 hours Standard Price or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cost $50.60 8.40 1.50 $ 60.50 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable…Vattes, Incorporated, manufactures and sells two products: Product 15 and Product U1. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Product 15 Product U1 Direct Labor- Expected Hours Per Production Unit 700 7.0 200 4.0 Activity Cost Pools Labor-related Machine setups Order size Product 15 Product U1 Total direct labor-hours The direct labor rate is $22.00 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit $ 261.60 $ 121.60 Activity Measures DLHS setups MHS The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity, Expected Activity Total Direct Labor- Estimated Overhead Cost $ 268,698 Hours 4,900 800 5,700 37,324 633,895 $939,917 Product 15 Product U1 4,900 300 4,900 800 400 4,800 Total 5,700 700 9,700
- Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. Unit product cost Additional data concerning these products are listed below. Multiple Choice Product C Product B Product D Product A Products A B C D $17.20 $ 21.10 $ 14.10 $ 16.80 19.20 22.60 17.00 11.00 6.00 7.20 29.10 16.00 $71.50 A 2.25 $ 86.70 $ 2.95 4,600 9.70 16.10 $66.90 $ 56.90 Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units. The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. B 1.30 $ 79.10 $ 3.65 3,600 C 0.85 $ 75.90 $4.40 3,600Requ Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C 26,000 2,800 40 Total Cost of Pool Cost Driver $250,600 Number of machine hours 61,600 Number of design hours 66,402 Number of batches Product A Product B Product C Total Overhead Assigned 36,000 1,600 170 Estimated Cost Driver 71,600 7,000 465 9,600 2,600 255 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.)Glover Company makes three products in a single facility. These products have the following unit product costs: Product A B C Direct materials $ 32.80 $ 49.30 $ 55.70 Direct labor 20.20 22.80 13.60 Variable manufacturing overhead 1.20 0.60 0.90 Fixed manufacturing overhead 13.50 9.10 9.70 Unit product cost $ 67.70 $ 81.80 $ 79.90 Additional data concerning these products are listed below. Product A B C Mixing minutes per unit 1.20 1.20 0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ 0.60 $ 1.10 $ 2.30 Monthly demand in units 2,000 3,300 1,300 The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of…