Norton Company has the following data for one of its production departments: Theoretical velocity: 420 units per hour Productive minutes available per year: 77,000,000 Annual conversion costs: $616,000,000 Actual velocity: 210 units per hour
Q: How many of each product should Carla Vista Co. produce and sell to maximize its profit? (Round per…
A: Solution Product Units to be Produced Product A 322 Product B…
Q: Sage Corporation manufactures two products with the following characteristics. Unit Contribution…
A: Where any resources are available in scarcity for production of a particular product, it should be…
Q: $ 8.00 Variable manufacturing overhead cost per unit $ 5.00 Variable sales…
A: Explorer Company…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A company has the following data for one of its manufacturing cells: Theoretical velocity 20 units…
A: Manufacturing cycle efficiency(MCE) It is the percentage of the time spent in manufacturing…
Q: The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter.…
A: Standard Deluxe Price per unit $40 $60 Less: Variable cost $20 $24 Contribution margin per…
Q: Indy Company has the following data for one of its manufacturing plants: Maximum units produced in a…
A: Manufacturing cycle efficiency (MCE) = Processing time /(Processing time + non Processing time )
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental cost = Incremental units×Variable cost per unit
Q: The West Company’s cost structure for a certain items at a level of 20,000 units per month are as…
A: Conversion costs = Direct Labor + Variable indirect cost + Fixed indirect cost = 1.20 + .80 + .50 =…
Q: Sandhill Co. is considering the introduction of three new products. Per unit sales and cost…
A: Total direct labor hours available = 1600 hours Contribution per unit = Selling price per unit -…
Q: This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and…
A:
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Incremental costs are always comprised of Variable costs . Total Variable cost in producing 100…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Total variable cost = direct material + direct labor + variable MOH + Variable selling costs…
Q: Suppose that a manufacturer plans to produce 78,000 units of product during a year. A lot of size L,…
A: Demand D = 78000 Units Cost price Cp = $7.5 per unit Set up Costs = $ 200 Inventory carrying costs…
Q: Cobe Company has already manufactured 18,000 units of Product A at a cost of $15 per unit. The…
A: The main objective of every business enterprises is to earn profit by satisfying the customers…
Q: Bryant Company has already manufactured 21,000 units of Product A at a cost of $15 per unit. The…
A: Decision: The company should Process Further. With formula:
Q: Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells…
A: Particulars Amount Direct materials $7.00 Direct labor 4.00 Variable manufacturing overhead…
Q: Storch Corporation takes eight hours to complete the setup process for a certain electrical…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells…
A: Manufacturing cost includes: Direct material Direct labor Direct expenses Manufacturing overhead…
Q: A company makes two products A and B, using a CNC milling machine which is classified as a single…
A: Working Note #1 Computation of effective capacity: Unit load of the mix= Product mix of product A *…
Q: We have been producing product A for several years and look forward to several more years of sales…
A: The decision to purchase a new equipment can be made by analyzing the costs to be saved by the new…
Q: Gelb Company currently manufactures 46,500 units per year of a key component for its manufacturing…
A: Formula: Total Variable cost = Variable cost per unit x number of units Number of units to be…
Q: Gelb Company currently manufactures 42,500 units per year of a key component for its manufacturing…
A: Allocated fixed costs cannot be avoided, and hence, are not relevant. This is because this cost is…
Q: The normal production capacity of a company is 10,000 units per month. On this basis, the fixed…
A: This question is, basically, asking for a decision whether the company should shut down or continue…
Q: Alltech Inc. has collected the following data. (There are no beginning inventories.) 510 units Units…
A: Absorption costing method of preparing income statement includes the portion of variable and fixed…
Q: With respect to its new product launch, Ernst and Anderson Manufacturing Ltd has gathered the…
A: Variable cost are the costs that changes with the change in the output level. Like direct material…
Q: ABC Tool Company produces 2,410 wooden ladders per day. Each ladder can be sold for $125. To create…
A: Formula: Total material cost = Cost of lumber + cost of screws + cost of dowels. Sum of lumber ,…
Q: Cycle Time, Conversion Cost per Unit, MCE Lander Parts, Inc., produces various automobile parts. In…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Cycle Time and Conversion Cost per Unit Hatch Manufacturing produces multiple machine parts. The…
A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: Step2 in the solution.
Q: Norton Company has the following data for one of its production departments: Theoretical velocity:…
A: Formula; Actual cycle time=60 minutesActual velocity
Q: If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round…
A: In accounting fixed costs remain fixed only within the relevant range of production. When the…
Q: A company is analyzing a make-versus-purchase situation for a component used in several products,…
A:
Q: roducts A, B, and C are produced from a single raw material input. The raw material costs $90,000,…
A: Step 1 Net Operating income means all revenue from operations and activities, minus all reasonably…
Q: Total costs are $180,000 when 10,000 units are produced of this amount variable costs are $64,000…
A: Definition: Cost: The amount paid to purchase the asset, install it, and put it into operations, is…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Variable cost of 100 units : Direct material cost 500 Direct labor cost 1800 Variable…
Q: Emerald Pools, Inc. has provided the following information for the year. Units produced Sales price…
A: Under Absorption costing all the direct costs (like Direct Material Cost, Direct Labor Cost) and…
Q: Harcourt Manufacturing (HM) has the capacity to produce 11,800 fax machines per year. HM currently…
A: Variable cost means the cost which vary with level of output where as fixed cost remain fixed. In…
Q: Goldberg Company currently manufactures 52,000 units per year of a key component for its…
A: Introduction Incremental cost: Incremental cost is the additional cost incurred by the company if it…
Q: CBC Inc is currently operating at 80% capacity. Its machine and factory has a maximum production…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials…
A: Increase in units=102-100=2 units
Q: ssume that a company has the following data for one of its manufacturing cells: Theoretical velocity…
A: We need to use the following equations Actual conversion cost per unit =actual cycle time*standard…
Q: Explorer Company has an annual plant capacity of 3,000 units. Data concerning this product are given…
A: Amount Sales (500 units X $ 45 per unit) $ 22,500 Less: Relevant Costs Direct…
Q: Marshall, Inc., produces three products but weekly demand for three products exceed the available…
A: Production: It can be defined as the process of combining various input materials to generate…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: The incremental cost refers to the total cost that a manufacturing unit incurs when an additional…
Q: Tom's Toolery is operating at 70% of its productive capacity. It is currently paying $23 per unit…
A: Relevant cost per unit of making = unit-level production costs…
Q: Nayvicky Company is making plans for the introduction of a new product, which has a target selling…
A: Given: Fixed overhead cost P200,000 Variable overhead cost per unit = P10 Labour hours…
Q: Explorer Company has an annual plant capacity of 3,000 units. Data concerning this product are given…
A: Please find the answer to the above question below:
Q: Gilberto Company currently manufactures 66,000 units per year of one of its crucial parts. Variable…
A: Incremental cost: Incremental cost is the analysis of the costs in different avenues, which could be…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Norton Company has the following data for one of its production departments:
Theoretical velocity: 420 units per hour |
Productive minutes available per year: 77,000,000 |
Annual conversion costs: $616,000,000 |
Actual velocity: 210 units per hour |
Required:
1. Calculate the actual conversion cost per unit using actual cycle time and the
Actual cycle time | fill in the blank | minutes per unit |
Standard cost per minute | $fill in the blank | per minute |
Conversion cost per unit | $fill in the blank | per unit |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is 9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). 2. Compute the ideal amount of conversion cost that will be assigned per subassembly. 3. Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced. What happens to product cost if the time to produce a unit is decreased to 25 minutes? How can a firm encourage managers to reduce cycle time? Finally, discuss how this approach to assigning conversion cost can improve delivery time. 4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. How much non-value-added time is being used? How much is it costing per unit? 5. Cycle time, velocity, MCE, conversion cost per unit (theoretical conversion rate actual conversion time), and non-value-added costs are all measures of performance for the cell process. Discuss the incentives provided by these measures.Cycle Time and Velocity Bemidii Company has the following data for one of its production departments: Theoretical velocity: 620 units per hour Productive minutes available per year: 31,000,000 Annual conversion costs: $186,000,000 Actual velocity: 310 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest cent. Actual cycle time Standard cost per minute Conversion cost per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places. Theoretical cycle time minutes per unit per unit Conversion cost per unit What incentive exists for managers when cycle time costing is used? minutes per unit $ per minute per unit 3. What if the actual velocity is 434 units per hour?…Cycle Time and Velocity Norton Company has the following data for one of its production departments: Theoretical velocity: 650 units per hour Productive minutes available per year: 65,000,000 Annual conversion costs: $390,000,000 Actual velocity: 325 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest cent. Actual cycle time fill in the blank 1 minutes per unit Standard cost per minute $fill in the blank 2 per minute Conversion cost per unit $fill in the blank 3 per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places. Theoretical cycle time fill in the blank 4 minutes per unit Conversion cost per unit $fill in the blank 5 per…
- Assume that a company has the following data for one of its manufacturing cells: Theoretical velocity – 40 units per hour; Productive minutes available (per year) – 1,200,000; Annual conversion costs - $4,800,000; and Actual velocity – 30 units per hour. choose the correct letter of answer Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute.a.$6b.$8c.$7d.$3 calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute.a.$6b.$8c.$7d.$3Cycle Time and Velocity Norton Company has the following data for one of its production departments: Theoretical velocity: 760 units per hour Productive minutes available per year: 32,000,000 Annual conversion costs: $192,000,000 Actual velocity: 304 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and your cost per unit answer to the nearest cent. Actual cycle time fill in the blank minutes per unit Standard cost per minute $fill in the blank per minute Conversion cost per unit $fill in the blank per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your intermediate calculations and final answers to two decimal places. Theoretical cycle time fill in the blank minutes per unit Conversion cost per unit $fill in the blank per unitCycle Time and Velocity Bemidii Theoretical velocity: 400 units per hour Productive minutes available per year: 5,000,000 Company has the following data for one of its production departments: Annual conversion costs: $120,000,000 Actual velocity: 240 units per hour Required: 1. Calculate the actual conversion cost per unit using actual cycle time and the standard cost per minute. Round your actual cycle time answer to three decimal places and round your cost per unit answer to the n Actual cycle time minutes per unit Standard cost per minute per minute Conversion cost per unit per unit 2. Calculate the ideal conversion cost per unit using theoretical cycle time and the standard cost per minute. If required, round your answers to two decimal places. Theoretical cycle time 0.15 minutes per unit Conversion cost per unit 0.9 X per unit What incentive exists for managers when cycle time costing is used? To reduce cycle time ✓ Actual cycle time Conversion cost per unit 0.25 24 6 3. What if…
- Norton Company has the following data for one of its production departments: Theoretical velocity: 300 units per hour Productive minutes available per year: 10,000,000 Annual conversion costs: $60,000,000 Actual velocity: 160 units per hour Based on the above information, the cycle time will be: Select one: a. .475 minutes per unit b. .275 minutes per unit C. .175 minutes per unit d. .375 minutes per unitNorton Company has the following data for one of its production departments: Theoretical velocity: 300 units per hour Productive minutes available per year: 10,000,000 Annual conversion costs: $60,000,000 Actual velocity: 160 units per hour Based on the above information, the theoretical cycle time will be Select one: a. 4 minutes per unit b. .2 minutes per unit c. Right answer is not listed d. .3 minutes per unitA company has the following data for one of its manufacturing cells: Theoretical velocity 20 units per hour Productive minutes available per year 1,200,000 Annual conversion cost $4,800,000 Actual velocity 15 units per hour Actual cycle time = 60 minutes/15 units = 4 minutes per unitStandard cost per minute = $4 per minuteActual conversion cost per unit = $4 × 4 = $16 per unitTheoretical cycle time = 60 minutes/20 units = 3 units per hourTheoretical conversion cost per unit = $4 × 3 = $12 per unit What we can see from this example is that the company has an incentive to reduce cycle time. It actually takes 4 minutes per unit but it could take as little as 3 minutes per unit. If cycle time could be reduced, the number of units produced could be increased and conversion cost per unit could be decreased. If actual cycle time were decreased to 3.5 minutes per unit, actual velocity (rounded to the nearest whole unit) would be ________ units per hour, and actual conversion cost…
- Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).Cycle Time, Conversion Cost per Unit, MCE Lander Parts, Inc., produces various automobile parts. In one plant, Lander has a manufacturing cell with the theoretical capability to produce 450,000 fuel pumps per quarter. The conversion cost per quarter is $9,000,000. There are 150,000 production hours available within the cell per quarter. Required: 1. Compute the theoretical velocity (per hour) and the theoretical cycle time (minutes per unit produced). Theoretical velocity Theoretical cycle time 2. Compute the ideal amount of conversion cost that will be assigned per subassembly.$___________ per unit 3 (a). Suppose the actual time required to produce a fuel pump is 40 minutes. Compute the amount of conversion cost actually assigned to each unit produced.$________ per unit 3 (b). What happens to product cost if the time to produce a unit is decreased to 25 minutes?$__________ per unit 4. Assuming the actual time to produce one fuel pump is 40 minutes, calculate MCE. If…Lazer Tag manufactures computer parts within a relevant range of 50,000 to 100,000 units per year. Complete the following manufacturing cost schedule (a through j) for Lazer Tag. Fill in the following chart. Parts Produced 50,000 100,000 TOTAL COSTS: Variable $75,000 ? Fixed 50,000 ? Total ? ? COSTS PER UNIT: Variable ? ? Fixed ? ? Total ? ?