Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used 2019 Number of direct labor hours spent Cost of CT140 per unit $ Direct labor wage rate per hour $ 750,000 900,000 150,000 156 56 2018 1,000,000 $ 1,050,000 200,000 $135 62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019. Required: 1. Compute the total productivity ratios for 2018 and 2019
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- Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour The partial direct labor operational productivity ratio for 2021 is: Multiple Choice 262 units per DLH. 169 units per DLH. 428 units per DLH. 300 units per DLH. 333 units per DLH. 2021 600,000 960,000 1,800 $ 1,443,750 $ 67 2022 780,000 1,072,500 2,600 $ 2,333,750 $82Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour 2019 $ S 750,000 900,000 150,000 156 56 2018 1,000,000 1,050,000 200,000 $ 135 $ 62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019. Required: 1. Compute the total productivity ratios for 2018 and 2019.Chilton Peripherals manufactures printers, scanners, and other computer peripheral equipment. In the past, thecompany purchased equipment used in manufacturing from an outside vendor. In March 2018, Chilton decidedto design and build equipment to replace some obsolete equipment. A section of the manufacturing plant was setaside to develop and produce the equipment. Additional personnel were hired for the project. The equipment wascompleted and ready for use in September.Required:1. In general, what costs should be capitalized for a self-constructed asset?2. Discuss two alternatives for the inclusion of overhead costs in the cost of the equipment constructed by Chilton. Which alternative is generally accepted for financial reporting purposes?3. Under what circumstance(s) would interest be included in the cost of the equipment?
- Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part-DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $1,443,750 $2,333,750 Direct labor wage rate per hour $67 $82 The partial operational productivity ratio of DTV-12 in 2022 is:Required information [The following information applies to the questions displayed below.] Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The device's main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashley's operating data for 2 years are as follows: Units manufactured Number of CT140 used. Number of direct labor hours spent Cost of CT140 per unit Direct labor wage rate per hour Direct materials Direct labor 2019 2019 960,000 1,050,000 240,000 per unit per hour $ $ Required: 1. Compute the partial operational productivity for both direct materials and direct labor for each of the 2 years. (Round your answers to 4 decimal places.) 165 $ 65 $ 2018 2018 1,160,000 1,190,000 290,000 per unit per hour 144 71Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $ 1,443,750 $ 2,333,750 Direct labor wage rate per hour $ 67 $ 82 The partial operational productivity ratio of DTV-12 in 2022 is: Multiple Choice 0.63 per unit. 0.73 per unit. 1.92 per unit. 3.00 per unit. 3.33 per unit.
- Xerxes Corporation ('XC') manufactures proprietary micro chipsets for smart devices. It purchased an automated pick-place-solder machine for $895,000 on June 29, 20X0. Installation was completed by July 31, 20X0 at a cost of $5,000 and the equipment was placed into service on August 1, 20X0. The equipment vendor estimates the expected useful life of the equipment to be 10 years, after which its residual value will be approximately $90,000. XC's year-end is April 30. Management decided to use the double-declining balance method of depreciation and prorates depreciation to the nearest full month. The depreciation expense XC should record for their 20X2 fiscal year (rounded to the nearest $1,000) is: $153,000 $144,000 $135,000 $122,000 $83,000An existing robot is used in a commercial material laboratory to handle ceramic samples in the hightemperature environment that is part of several test procedures. Due to changing customer needs, the robot will not meet future service requirements unless it is upgraded at a cost of $2,000. Because of this situation, a new advanced technology robot has been selected for potential replacement of the existing robot. The accompanying estimates have been developed from information provided by some current users of the new robot and data obtained from the manufacturer. The firm’s before-tax MARR is 25% per year. Based on this information,should the existing robot be replaced? Assume that a robot will be needed for an indefinite period.Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $63,700, the accumulated depreciation is $25,500, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $132,500. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: PresentOperations ProposedOperations Sales $201,900 $201,900 Direct materials $68,800 $68,800 Direct labor 47,800 — Power and maintenance 4,500 23,600 Taxes, insurance, etc. 1,600 5,300 Selling and administrative expenses 47,800 47,800 Total expenses $170,500…
- Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $78,100, the accumulated depreciation is $31,200, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $162,400. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: PresentOperations ProposedOperations Sales $247,600 $247,600 Direct materials $84,300 $84,300 Direct labor 58,600 — Power and maintenance 5,500 28,900 Taxes, insurance, etc. 2,000 6,500 Selling and administrative expenses 58,600 58,600 Total expenses $209,000…The PUPPY SAFETY Corp. is dedicated to the wholesale of microfiche systems to detect the location of lost pets. The company has a production capacity of 10,000 system units and currently only produces 8,000. The company is operating above its tie point. The sale price per system is $500.00 and the related costs are presented later. Required: Indicate whether this business should accept or reject a special order of 500 microchips at a price of $300. The client is the Humane Society and it is an order that will not be repeated in the future as this comes from non-recurring funds. When we learned that the Humane Society was seeking bids, we took it upon ourselves to send our sales specialists who brought a proposal prepared following the usual sales and marketing practices. Despite being a special order, if accepted, it will follow the typical pattern of routine orders in terms of transaction costs. This order has no effect on the routine business of PUPPY SAFETY. Manufacturing costs…An electronics firm invested $60,000 in a precision inspection device. It cost $4000 to operate and maintain in the first year and $3000 in each of the subsequent years. At the end of 4 years, the firm changed their inspection procedure, eliminating the need for the device. The purchasing agent was very fortunate in being able to sell the inspection device for $60,000, the original price. The plant manager asks you to compute the equivalent uniform annual cost of the device during the 4 years it was used. Interest at 6% per year.