Compute the applied conversion cost per unit

Assignment Help Accounting Basics
Reference no: EM132701647

Problem - The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are $2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs.

Required -

1. Compute the theoretical conversion cost per unit.

2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product).

3. Discuss how this approach to assigning conversion costs can improve delivery time performance.

Reference no: EM132701647

Questions Cloud

Describe the four control cycle in detail : Describe the Four Control Cycle in detail. A strategic control system is designed to support managers in evaluating the organization's progress
Describe evolution of inspecting and improving quality : Describe the evolution of inspecting and improving quality in the healthcare industry.
Description of emphysema including types of drugs : Description of emphysema including types of drugs that would be prescribed to patients to treat associated symptoms.
What conditions must be satisfied for a taxpayer to expense : What conditions must be satisfied for a taxpayer to expense, in the year of purchase, under Internal Revenue Code Section 179, the cost of new
Compute the applied conversion cost per unit : The budgeted conversion costs for the manufacturing cell are $2,700,000 per year. Compute the applied conversion cost per unit
What requirements must satisfy under irc to be eligible : Steve is a single taxpayer. What requirements must he satisfy under IRC §121 to be eligible to elect to exclude gain on sale or exchange of principal residence
Describe nurse role and responsibility as health educator : Describe the nurse's role and responsibility as health educator. What strategies, besides the use of learning styles, can a nurse educator consider when.
Quick relief treatment options for asthma patients : Describe long-term control and quick relief treatment options for asthma patients, as well as the impact these drugs might have on patients.
What is the new full cost-plus transfer price : Refer to Requirement 2. Assume that in the following year, the outside price of subwoofers increases to $32. What is the new full cost-plus transfer price

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd