Zytel corporation produces cleaning compounds and solutions for industrial and household use. while most of its products are processed independently, a few are related. grit 337, a coarse cleaning powder with many industrial uses, costs $1.60 a pound to make and sells for $2.00 a pound. a small portion of the annual production of this product is retained for further processing in the mixing department, where it is combined with several other ingredients to form a paste, which is marketed as a silver polish selling for $4.00 per jar. this further processing requires 1/4 pound of grit 337 per jar. costs of other ingredients, labor, and variable overhead associated with this further processing amount to $2.50 per jar. variable selling costs are $0.30 per jar. if the decision were made to cease production of the silver polish, $5,600 of mixing department fixed costs could be avoided. zytel has limited production capacity for grit 337, but unlimited demand for the cleaning powder. required: calculate the minimum number of jars of silver polish that would have to be sold to justify further processing of grit 337. (round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Select the correct answer the smith family adopted a child. the adoption procedure took about three months, and the family incurred various expenses. will the smiths receive and financial benefit for the taxable year? a) they will not receive any financial benefit for adopting the child b) their income tax component will decrease c) they will receive childcare grants d) they will receive a tax credit for the cost borne for adopting the child e) they will receive several tax deductions

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?