Poly products LLC set up machines for producing various products like spring mattresses and beds, the company also manufactures foam mattresses, etc. The total cost allocated to cost centre for machine set up related costs is RO 500,000 and that there were total 1000 set ups during the period. If spring mattresses product needs 250 set ups, find out the machine set up cost spent by the company only for spring mattresses ? a. RO 125,000 b. None of these c. RO 250,000 d. RO 500
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- 1) Remy Manufacturing Co, produces a product which is priced at P 10 each. Costs are as follows: Activity Driver Level of Activity Driver Unit Variable Cost P 5 450 20 Units sold 80 Setups Engineering hours Other data: Total fixed costs (conventional) Total fixed costs (ABC) 500 .P 96,000 50,000 10. Compute the BEP in units using conventional analysis. 11. Compute the BEP in units using ABC analysis. J) The owner of ATIN Supermarket have been looking for ways to improve sales at the store. One of the proposals is to have a weekly raffle with a total price of P6.000 per week. For every P20 worth of goods purchased, the customer shall receive a numbered ticket for the raffle. The variable cost to print and distribute the tickets has. been estimated at one peso (P1.00). Promotions and other fixed costs in connection with the raffle, likewise, have been estimated at P5,000 per week. The current weekly operating results of ATIN Supermarket are given below. Sales .. Variable costs ..P600,000…Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
- [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Rims Posts Direct Labor- Hours per unit 0.60 0.60 Additional information about the company follows: a. Rims require $17 in direct materials per unit, and Posts require $14. b. The direct labor wage rate is $20 per hour. Activity Cost Pool Machine setups Special processing General factory c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Annual Production Activity Cost Pool Machine setups Special processing General factory 26,000 units 84,000 units $ 14.00 Activity Measure Number of setups Machine-hours Direct labor-hours X Answer is not complete. Activity Rate Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) Estimated Overhead Cost $ 39,480 $…Z Inc. manufactures a component Zeta which it uses in production of its main product. The manufacturing costs per unit of Zeta are as follows: Item Cost per unit Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead 3.50 4.50 2.50 2.00 Annual requirement of Zeta is 8,000 units. Fixed manufacturing overhead is allocated to Zeta based on machine-hours used in its production and cannot be avoided if production of Zeta is stopped. An outside supplier has offered Z Inc. to supply 8,000 units at a total cost of $96,000. If Z Inc. purchases the component Zeta from the outside supplier, how will it affect its operating income? a. Operating income will increase by $4,000 b. Operating income will decrease by $4,000 c. Operating income will increase by $6,000 d. Operating income will decrease by $12,0001. Kool Kat Furniture manufactures sofas for distribution to several major retail chains. The following costs are incurred in the production and sale of sofas. For each cost listed below, determine if it is a Fixed Cost, a Variable Cost, or a Mixed Cost. Fixed Cost Variable Cost Mixed Cost Cost а. Wood for framing the sofas b. Salary of production vice president C. Rent on experimental equipment, $50 for every sofa produced d. Rental costs of warehouse, $30,000 a month Insurance premiums on property, plant, & equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000. е. Consulting fee of $120,000 paid to efficiency specialists Salesperson's salary, $80,000 plus 4% of the selling price of each f. g. sofa sold h. Janitorial supplies, $25 for each sofa produced i. Employer's FICA taxes on controller's salary of $180,000 j. Fabric for sofa coverings k. Hourly wages of sewing machine operators I. Sewing supplies m. Salary of designers n. Foam rubber for cushion…
- Kantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $50 d. Referring to (a), Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assume that Kantrovitz is operating at full capacity, and that the contribution of the output would be displaced by the one-time special order. Using the original data, compute the minimum acceptable selling price for this order. $______Kantrovitz Company is a manufacturer of industrial components. One of its products, AP110, is used as a subcomponent in appliance manufacturing. This product has the following information per unit: Selling price $150.00 Costs: Direct material $20.00 Direct labor 15.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 30.00 Shipping and handling 3.00 Fixed selling and administrative 10.00 Total per-unit cost $90.00 a. Kantrovitz has received a special, one-time order for 1,600 AP110 parts. Assuming Kantrovitz has excess capacity, what is the minimum price that is acceptable for beginning negotiations on this order? $______ b. Kantrovitz has 8,000 units of AP110 in inventory that have some defects. The units cannot be sold through regular channels without a significant price reduction. What per-unit cost figure is relevant for setting a minimum selling price on these units? $______ c. During the next year, sales of AP110 are expected to be 16,000…Blossom, Incorporated, is a small company that manufactures three versions of patio tables. Unit information for its products follows: Sales price Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Required number of labor hours Required number of machine hours Required 1 Required 2 Table A $49 9 2 4 8 Complete this question by entering your answers in the tabs below. 0.50 4.00 Required 3 Required 4 Product Table B $53 10 4 4 8 Blossom has determined it can sell a limited number of each table in the upcoming year. Expected demand for each model follows: Table A 50,000 units 25,000 units 25,000 units Table C Table B Table A Table B Table C Required: 1. Suppose direct labor hours have been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank, i.e., ordering the products from 1 to 3. 2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table Blossom should…