Business, 19.03.2020 09:29 ggujjnh

The following data are for the two products produced by Tadros Company.

Product A Product B
Direct materials $15 per unit $24 per unit
Direct labor hours 0.3 DLH per unit 1.6 DLH per unit
Machine hours 0.1 MH per unit 1.2 MH per unit
Batches 125 batches 225 batches
Volume 10,000 units 2,000 units
Engineering modifications 12 modifications 58 modifications
Number of customers 500 customers 400 customers
Market price $30 per unit $120 per unit

The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.
Costs Driver
Indirect manufacturing
Engineering support $24,500 Engineering modifications
Electricity 34,000 Machine hours
Setup costs 52,500 Batches
Nonmanufacturing
Customer service 81,000 Number of customers

Required:
1. Compute the manufacturing cost per unit using the plantwide overhead rate based on direct labor hours. What is the gross profit per unit?
2a. How much gross profit is generated by each customer of Product A and Product Busing the plantwide overhead rate?
2b. What is the cost of providing customer service to each customer?
2c. Is the gross profit adequate for each customer of Product A and Busing the plantwide overhead rate?
3. Determine the manufacturing cost per unit of each product line using ABC.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 14:00

The new york stock exchange is an example of physical or individual

Answers: 2

Answer

Business, 22.06.2019 05:30

Excel allows you to take a lot of data and organize it in one document. what are some of the features you can use to clarify, emphasize, and differentiate your data?

Answers: 2

Answer

Business, 22.06.2019 07:20

Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."

Answers: 1

Answer

Business, 22.06.2019 07:30

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $

Answers: 1

Answer

You know the right answer?

The following data are for the two products produced by Tadros Company.

Product A Produ...

Questions