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3 years ago

The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers.

Business

1 answer:

Umnica [9.8K]3 years ago

4 0

Answer:

Tulsa Medical Supply Company

1. Calculation of the unit cost of a production order for 100 specially coated plates used in cancer testing:

Direct materials $120 * 100 plates = $12,000

Direct labor 40 * 100 plates = 4,000

Overhead:

Machine setups $2,000 * 3 setups $6,000

Material handling $2 * 900 pounds 1,800

Hazardous control $5 * 300 pounds 1,500

Quality control $75 * 3 inspections 225

Other overheads $10 * 50 machine hours 500

Total overheads applied $10,025

Total manufacturing cost for 100 plates $26,025

Unit cost = $26,025/100 = $260.25 per plate

Explanation:

a) Data and Calculations:

Activity Cost Pool Budgeted Cost Driver Budgeted Level for

Overhead Cost Cost Driver Pool Rate

Machine setups $ 250,000 Number of setups 125 $ 2,000 per setup

Material handling 75,000 Weight of raw material 37,500 lb. $2 per pound

Hazardous waste control 25,000 Weight of hazardous chemicals used 5,000 lb. $ 5 per pound

Quality control 75,000 Number of inspections 1,000 $ 75 per inspection

Other overhead costs 200,000 Machine hours 20,000 $ 10 per machine hour

Total $ 625,000

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Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses

Flauer [41]

Answer:

Required 1

Part a

Total Product cost = Variable manufacturing costs + Fixed manufacturing costs

where,

Variable manufacturing costs = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

Fixed manufacturing costs = $32,500 ÷ 1,000 units = $32.50

therefore,

Total Product cost = $147.50 + $32.50 = $180.00

Part b

Total period cost = variable non- manufacturing costs + fixed non-manufacturing costs

where,

variable non- manufacturing costs = $15,000 + $5,500 = $20,500

fixed non-manufacturing costs = $24,000 + $28,000 = $52,000

therefore,

Total period cost = $20,500 + $52,000 = $72,500

Required 2

Part a

total direct manufacturing cost = Direct Materials + Direct Labor + Direct (Variable) Manufacturing Overheads

therefore,

total direct manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total indirect manufacturing cost = fixed manufacturing costs

therefore

total indirect manufacturing cost = $32,500

Required 3

Part a

total manufacturing cost = variable manufacturing cost + fixed manufacturing costs

therefore,

total manufacturing cost = $84,000 + $42,500 + $21,000 + $32,500 = $180,000

Part b

total non-manufacturing cost = variable non-manufacturing cost + fixed non-manufacturing cost

therefore,

total non-manufacturing cost = $20,500 + $52,000 = $72,500

Part c

total conversion cost = direct labor cost + manufacturing overheads

therefore,

total conversion cost = $42,500 + $21,000 + $32,500 = $96,000

prime cost = direct material + direct labor

therefore,

prime cost = $84,000 + $42,500 = $126,500

Required 4

Part a

total variable manufacturing cost = direct materials + direct labor + variable manufacturing costs

therefore,

total variable manufacturing cost = $84,000 + $42,500 + $21,000 = $147,500

Part b

total fixed cost = fixed manufacturing costs + fixed non-manufacturing costs

therefore,

total fixed cost = $32,500 + $52,000 = $84,500

Part c

variable cost per unit produced and sold = variable manufacturing cost + variable non-manufacturing

therefore,

variable cost per unit produced and sold = $147.50 + ($20,500 ÷ 1,000) = $168.00

Required 5

incremental manufacturing costs = variable manufacturing costs

therefore,

incremental manufacturing cost = ($84,000 + $42,500 + $21,000) ÷ 1,000 units = $147.50

8 0

3 years ago

When the US government becomes aware of economic changes, the discovery is most likely to influence 1. how the nation allocates

snow_tiger [21]

Answer:

1. How the nation allocates resources

Explanation:

Government is the chief decision maker in any economic model because their power enables to allocate nation`s resources among economic unit. As such they keep watch on the economic changes and trends in order to make the best economic decision for the nation. When government becomes aware of economic changes, it will try to allocate resources efficiently and effectively based on signal given by the changes.

For example, if US government is aware that the economy is nearing recession, it will be put in preventive measures to escape the intending recession and make sure it allocates its scarce in efficient way among the economic units by spending more on capital projects, raising social empowerment spending and doing other necessary things.

So the discovery of economic changes will most likely influence how the nation allocates resources.

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3 years ago

A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for simil

Ann [662]

Answer:

Nonstructured pricing

Explanation:

Nonstructured pricing is also called copy cat method of pricing and involves a pricing that is based on prices charged by similar businesses for a product or service. The business copy cats the prices of competitors. On the other hand structured pricing is done based on the firm's internal determination of the value of a product.

A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for similar dishes at the other restaurants. He is using no structured pricing.

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3 years ago

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Two carpenters at a cabinet company are interested in receiving a raise in salary. Matt has worked for many years at the company

son4ous [18]

Answer:

Explanation:

Jason will get the raise because even though he is new he works hard like he's been there for years. Matt will not get it because even though he has worked there for a while he doesn't do his job good.

Explanation:

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2 years ago

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Water Technology, Inc. Incurred the following costs during 20xt. The company sold all f ts products manufactured during the year

Thepotemich [5.8K]

Answer:

Part 1

Variable Costs

Direct material $5,000,000

Direct labor $2,400,000

Fixed Costs

Utilities (primarily electricity) 120,000

Depreciation on plant and equipment 220,000

Insurance 150,000

Supervisory salaries 400,000

Property taxes 230,000

Salaries of top management and staff 372,000

Office supplies 45,000

Depreciation on building and equipment 80,000

Part 2

Forecast the 20x2 cost amount for each of the cost items listed

Direct material ($5,000,000 x 1.20) $6,000,000

Direct labor (2,400,000 x 1.20) $2,880,000

Utilities (primarily electricity) $120,000

Depreciation on plant and equipment $220,000

Insurance $150,000

Supervisory salaries $400,000

Property taxes $230,000

Salaries of top management and staff $372,000

Office supplies $45,000

Depreciation on building and equipment $80,000

Explanation:

Variable Costs vary with the level of production. Examples are Direct Materials and Direct labor.

Fixed Costs remain constant for any production level. Examples are Depreciation and Utilities such as electricity.

A growth in Sales will affect the Variable Costs only. As production increases to meet the 20 percent growth in sales so do these costs since they vary in direct proportion to the level of production.

4 0

3 years ago