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Licemer1 [7]
2 years ago
3

Under absorption costing, a company had the following unit costs when 9,000 units were produced. Direct labor $ 7.25 per unit Di

rect material $ 8.00 per unit Variable overhead $ 5.50 per unit Fixed overhead ($67,500/9,000 units) $ 7.50 per unit Total production cost $ 28.25 per unit Compute the total product cost per unit under variable costing if 30,000 units had been produced.
Business
1 answer:
ryzh [129]2 years ago
6 0

Answer:

Total Product cost under variable costing is $690,000

Explanation:

Total Absorption unit Cost  = $28.25

Under Variable costing variable cost are calculated separately and Fixed cost is added to the value.

Total Variable Cost = 30,000 x ( $7.25 + $8.00 + $5.5 )

Total Variable Cost = 30,000 x $20.75 = $622,500

Total product cost = Variable cost + Fixed cost = $622,500 + $67,500 = $690,000

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A robot manufacturing company in Southeast Asia undertakes a government project to produce multi-utility robots. It requires a s
eimsori [14]

Answer: a. Computer-aided manufacturing

Explanation: A computer-aided manufacturing would help the robot manufacturing company in this regard since it can provide the required software to control the machine tools and processes needed in the manufacture of the multi-utility robots.

Computer-aided manufacturing (CAM) is defined as the use of software and computer-controlled machinery to automate a manufacturing process and is composed entirely of software that tells a machine how to make a product through the generation of toolpaths; a machinery that can turn raw material into a finished product and a post processing unit that converts toolpaths into machine languages. Computer-aided manufacturing thus provides high–speed machine tool paths that greatly minimize cycle times, reduce tool and machine wear and general improvement in quality and accuracy of cutting.

7 0
2 years ago
Read 2 more answers
Nation’s Capital Fitness, Inc. operates a chain of fitness centers in the Washington, D.C., area. The firm’s controller is accum
g100num [7]

Answer:

Instructions are below

Explanation:

Giving the following information:

January 520 $ 4,470

February 490 4,260

March 300 2,820

April 500 4,350

May 310 2,960

June 480 4,200

July 320 3,000

August 400 3,600

September 470 4,050

October 350 3,300

November 340 3,160

December 320 3,030

A) To calculate the fixed and variable costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,470 - 2,820) / (520 - 300)

Variable cost per unit= $7.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,470 - (7.5*520)

Fixed costs= $570

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,820 - (7.5*300)

Fixed costs= $570

B)

Total cost= 570 + 7.5x

x= hours of mantainance

C) x= 590

Total cost= 570 + 7.5*590

TC= $4,995

D) x= 600

Total cost= 570 + 7.5*600

TC= $5,070

8 0
2 years ago
Wehrs Corporation has received a request for a special order of 9,700 units of product K19 for $47.20 each. The normal selling p
Grace [21]

Answer:

See below.

Explanation:

We can compute the profitability of this special order by accounting for the incremental costs,

Sales (9700 * 47.20) = $457,840

Incremental Variable costs = (18 + 7.30 + 4.50 + 6.90) = $36.7/unit

The incremental variable costs include the $6.9 for modifications and does not include 7.4 which is a part of non incremental fixed costs.

Profits from this special order are as follows,

Sales                                                   457,840

Less:

Variable costs (36.7*9700)                355,990

Incremental Fixed costs                    46,700

Profits from this special order           55,150

Since the order has positive contribution and as it yields profits, it should be accepted.

Hope that helps.

8 0
2 years ago
All of the following are true about the basic EOQ model except One half the order size equals the average inventory level. The a
Gemiola [76]

Answer:

Hence, the second statement describing the average inventory is false

Explanation:

<em>The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. It is the order size that optimizes the investment in stock ordering</em>.

The following statements

The number of orders = Annual demand/order size

Re-order level(point) Average daily usage × average lead time

Average inventory = safety stock × (1/2× order size)

The average Dollar value = Unit price × average inventory

Hence, the second statement describing the average inventory is false

7 0
1 year ago
A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
2 years ago
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