Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 47,000 units per month is as follows:
Direct materials
$46.10
Direct labor
$8.80
Variable manufacturing overhead
$1.80
Fixed manufacturing overhead
$18.70
Variable selling & administrative expense
$3.20
Fixed selling & administrative expense
$15
The normal selling price of the product is $100.10 per unit.
An order has been received from an overseas customer for 2,700 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales.
Direct labor is a variable cost in this company.
Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer?
$40.20 $15.40 $16.70 $14.20
2. Eley Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 45,000 units per month is as follows:
$45.10
$8.60
$1.60
$18.30
$2.80
$13
The normal selling price of the product is $96.10 per unit.
An order has been received from an overseas customer for 2,500 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.70 less per unit on this order than on normal sales.
Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 950 units for regular customers. The minimum acceptable price per unit for the special order is closest to:
$96.10$84.90$69.10$70.84
3. The following are the Jensen Corporation's unit costs of making and selling an item at a volume of 2,100 units per month (which represents the company's capacity):
Manufacturing:
$2.10
$3.10
Variable overhead
Fixed overhead
$0.40
Selling and Administrative:
Variable
Fixed
$0.80
Present sales amount to 1,250 units per month. An order has been received from a customer in a foreign market for 210 units. The order would not affect current sales. Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 1,250 units and 2,100 units. The variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales. Direct labor is a variable cost.
Assume the company has 55 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. Which of the following costs is relevant in this decision?
$6.80 variable manufacturing cost
$7.20 unit product cost
$3.10 variable selling and administrative cost
$11.10 full cost
Calculate the number of units to be produced in each of the months of August, September, and October.
bixby corporation purchased land and a building for 800000. an appraisal shows that the lands value is 400000 and the
Calculate Daycos asset turnover ratio and its profit margin and show how the two ratios in Part (a) can be used to determine Dayco's rate of return on assets.
Classifying events as asset source - Receive cash from customers for services rendered
questionrailway company a has 1000 miles of get that extend from location a to location b. railway company a adopted
During the fourth year, Sandran changes to the average-cost method for all its inventory. How will Sandran report this change?
The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.
Identify principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.
Compute the rate of return on net sales for 2008 through 2010, rounding to three decimal places. In this industry, rates of 6% are average, rates above 8% are considered good and rates above 10% are viewed as outstanding.
Prepare calculations how the $165,000 income should be allocated to the partners under each of the three separate plans for sharing income and loss
What is the goal of the EOQ model, why does a firm hold "safety stock" and what costs are a firm trying to balance when it decides on how much safety stock to hold?
Prepare the journal entry to record the acquisition by Willis Inc - The book values and fair values of Willis' assets
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd