Calculate the nonvalue-added cost per unit, Cost Accounting

Assignment Help:

Question

Roseville, Ltd., sells one of its products for $500 each. Sales volume averages 1,000 units per year. Recently, its main competitor priced their competing product at 10 percent below Roseville's price. Roseville expects its sales to drop dramatically unless it matches the competitor's price. Despite the anticipated price reduction, Roseville would like to maintain its current profit per unit.

Information regarding the inputs required to produce 1,000 units of product is as follows:

                                    SQ

                        AQ

          Actual Cost

Materials (kilograms)

7,800

8,000

$160,000

Labour (hours)

600

720

108,000

Setups (hours)

-0-

600

34,000

Material handling (moves)

-0-

300

58,000

Warranties (number repaired)

-0-

200

60,000







(A) Calculate the target cost for maintaining current market share and profitability.

(B) Calculate the nonvalue-added cost per unit.

(C) If nonvalue-added costs can be reduced to zero, can the target cost be achieved? Explain your answer.


Related Discussions:- Calculate the nonvalue-added cost per unit

Marginal costing.., importance of marginal costing &standing costing

importance of marginal costing &standing costing

Prepare a statement of comprehensive income, Good Food Company is a local m...

Good Food Company is a local manufacturer of instant noodles. Established in 2005, their business has been growing steadily. Their products, which are available in 3 flavors, are s

Marginal costing, Please kindly post some problems along with solutions so...

Please kindly post some problems along with solutions so it is easy to understand..I am quite satisfied by the per-forma you have mentioned.. THANK YOU.

Calculate the payout ratio, The following information is available for Whit...

The following information is available for Whitlock Corporation in millions average common stockholders equity 2014-$2,532 2013-$2,591 dividends declared for common stockholders 20

Calculate the direct-material price and quantity variances, Quicksilver Com...

Quicksilver Compnay has set the follwoing standards for one unit of product: Direct material Quantity: 6.2 lbs per unit Price per lb: $11 per lb Direct Labor Quantity: 6 hrs

Development and research cost budget, Development and Research Cost Budget ...

Development and Research Cost Budget These are costs that are discretional in nature such as they are determined on need basis via the managers concerned. Research cost is the

Prepare a preliminary cost benefit analysis, Managers need financial inform...

Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.

Write Your Message!

Captcha
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