Don't give answer in image !Required informationThe Foundational 15 (Algo) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6][The following information applies to the questions displayed below.]Cane Company manufactures two products called Alpha and Beta that sell for $165 and $130, respectively. Each productuses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 113,000units of each product. Its average cost per unit for each product at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadTraceable fixed manufacturing overheadVariable selling expensesCommon fixed expensesTotal cost per unitAlpha$ 40Beta$ 2429251514252721172419$ 154$ 126The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expensesare unavoidable and have been allocated to products based on sales dollars.Foundational 13-2 (Algo)2. What is the company's total amount of common fixed expenses?Total common fixed expenses

To get the total common fixed expenses, we will use the following formula: Total common fixed…

Answered: ! Required information The Foundational…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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aces Required information. The Foundational 15 (Algo) (LO13-2, LO13-3, LO13-4, LO13-5, LO13-6) [The following information applies to the questions displayed below.) Cane Company manufactures two products called Alpha and Beta that sell for $150 and $105, respectively. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 107,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Units produced. Alpha $ 30 25 Alpha 12 21 17 20 $ 125 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Beta Beta $10 Foundational 13-13 (Algo) 13. Assume Cane's customers would buy a maximum of…
The Foundational 15 (Algo) [LO11-2, LO11-3, LO11-4, LO11-5, LO11-6] [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $180 and $145, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 118,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 36 $ 24 32 27 19 17 27 30 24 20 27 22 $ 165 $ 140 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 11-8 (Algo) 8. Assume that Cane normally produces and sells 72,000 Betas and…
18. Questions 18 and 19 are based on the following information: Regine Company manufactures plugs used in its manufacturing cycle at a cost of Ph 36 per unit that includes Ph 8 of fixed overhead. Regine needs 30,000 of these plugs annually and Orlan Company has offered to sell these units to Regine at Ph 33 per unit. If Regine decides to purchase the plugs, Ph 60,000 of the annual fixed overhead applied will be eliminated, and the company may be able to rent the facility previously used for manufacturing the plugs. If Regine Company purchases the plugs but does not rent the unused facility, the company would * save Ph 3.00 per unit lose Ph 6.00 per unit save Ph 2.00 per unit lose Ph 3.00 per unit O O
Crane Company uses 9000 units of Part A in producing its products. A supplier offers to make Part A for $5. CraneCompany has relevant costs of $8 a unit to manufacture Part A. If there is excess capacity, the relevant cost of buying Part A from the supplier is $72000. $45000. $27000. $0.
Kairos, Inc. produces three products namely, Product X, Product Y, and Product Z. The following data from 2022 are provided. Determine the product mix that would maximize the 215,000 limited machine hours available in 2023. A. X – 55,000 units; Y – 35,000 units; Z – 30,000 units B. X – 60,000 units; Y – 35,000 units; Z – 30,000 units C. X – 60,000 units; Y – 30,000 units; Z – 35,000 units D. X – 50,000 units; Y – 35,000 units; Z – 30,000 units
! Required information [The following information applies to the questions displayed below.] Hoboken Industries currently manufactures 45,000 units of part MR24 each month for use in production of several of its products. The facilities now used to produce part MR24 have a fixed monthly cost of $225,000 and a capacity to produce 91,500 units per month. If the company were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40 percent of their present amount. The variable production costs of part MR24 are $13 per unit. Required: 1. If Hoboken Industries continues to use 45,000 units of part MR24 each month, it would realize a net benefit by purchasing part MR24 from an outside supplier only if the supplier's unit price is less than what amount? Amount
a) Almond Delites manufactures various types of biscuits. FMF Biscuits Ltd has approached Almond Delites with a proposal to sell the company its top-selling biscuit at a price of $22 000 for 20 000 units. The costs shown are associated with the production of 20 000 units of almond biscuits: Direct materials: $12,000 Direct labor: $5,000 Variable overhead: $8,000 Fixed overhead: $25,000 The manufacturing overhead consists of $2 000 of variable costs, with the balance being allocated to fixed costs. Assume that 40% of the fixed costs would be avoidable if the almond biscuits were purchased externally rather than produced internally. Required: i)Should Almond Delites make or buy the almond biscuit? ii) What qualitative factors should Almond Delites consider before making its decision?
This Little Light, Inc. is a manufacturer of lamps. Little Light makes 40,000 units per year of a part that it uses in the manufacturing of each lamp. At this activity level, the unit production cost is $7.17. Of this amount, $4.71 is for unit variable production costs. The remainder is for fixed production costs and equals $98,400. Little Light has identified an outsider supplier who sells the needed part. If the part is purchased from the outsider supplier, 15% of Little Light's fixed manufacturing costs will be eliminated. Assume Little Light will need 50,000 of the part next year and that the freed up capacity can be rented out to another company for $31,740. At what purchase price will Little Light be economically indifferent between making the part and buying the part? $4.70 $4.86 $5.97 $5.50 $5.64
Beat Company manufactures 8,000 units of a certain component per year. This component is used in the production of the main product. The following are the costs to make the component per unit: Direct materials $4 Direct labor $4 Variable overhead $3 Fixed overhead $5 If Beat Company buys the component from an outside supplier, the company can rent out the released facilities for P12,360 a year. The cost of the component per unit as quoted by the supplier is P15. 25% of fixed overhead applied in the manufacture of the component will continue regardless of what decision is made. For all purchase made by the company, freight and handling costs are applied at 2% of the purchase price. The direct materials cost presented above is exclusive of such freight and handling cost. What is the advantage or disadvantage of buying the component?A. P12,240 advantage B. 24,600 advantage C. 5,400 disadvantage D. 8,600 advantage
1. Reveille, Inc., purchased Machine #204 on April 2021, and placed the machine into production on April 3, 2021. The following information is relevant to Machine #204:Price P60,000Freight-in costs 2,500Preparation and installation costs 3,900Labor costs during regular production operation 10,200Credit terms 2/10, n/30Total productive output 138,500 unitsThe company expects that the machine could be used for 10 years, after which the salvage value would be zero. However, Reveille, Inc., intends to use the machine only eight years, after which it expects to be able to sell it for P9,800. The invoice for Machine #204 was paid April 10, 2021. The number of units produced in 2021 and 2022 were 23,200 and 29,000, respectively. Reveille computes depreciation to the nearest whole month.Required Compute the depreciation for the years indicated, using the following methods (round your answer to the nearest peso): 1. 2021: Units of productions2. 2022: Sum-of-the-years’- digits method 2. The…
The Dodson Company manufactures and distríbutes three types of electronic products, Zymol, Zybat and Zycot. The following details the unit sales, selling prices and manufacturing costs of the three electronic devices: Zymol $100 Zybat $120 Zycot $180 Sales Price Manufacturing Cost $60 $80 $110 Number ofunits sold 15,000 13,000 12,000 Selling, general and administrative(SG&A) expenses are $1,170,000. SG&Aexpenses are currently being allocated based upon sales revenue for the three products. The Dodson Companyis considering allocating SG&A expenses underan activity based costing methodology as follows: Upon further investigation of the SG&A expenses, (50 percent) are shown to be for marketing and advertising. Each product has its own advertising and marketing budget, administered by one of the three marketing managers. Zycot, the premier product, is advertisedheavily. Sixty percent of the marketing and advertising budget goes toward Zycot, twenty percent to Zymol and twenty percent to…
10. Panda Company manufactures silver coated wooden chairs. The following were among Panda's 2020manufacturing costs:> Machine operators, P200,000> Maintenance workers, P30,000> Factory foreman, P90,000> Wood, P500,000> Lubricant for oil machinery, P10,000> Silver coating, P380,000 In 2020, Panda's direct labor and direct materials amounted to:A. Direct Labor, P230,000; Direct Materials, P510,000B. Direct Labor, P320,000; Direct Materials, P880,000C. Direct Labor, P200,000; Direct Materials, P880,000D. Direct Labor, P220,000; Direct Materials, P500,000 11. Many companies recognize three major categories of costs of manufacturing a product. These are direct materials,direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile?A. The cost of laborers who place who place tires on each automobile.B. The cost of small tools used in mounting tires on each automobile. C. The cost of the tires on each automobile.D. The…

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