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postnew [5]
3 years ago
14

At an activity level of 8,500 machine-hours in a month, Falks Corporation’s total variable production engineering cost is $748,8

50 and its total fixed production engineering cost is $177,760. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 8,800 machine-hours in a month?
Business
1 answer:
AlexFokin [52]3 years ago
5 0

Answer:

$108.30 per machine-hour

Explanation:

To find out the  total production engineering cost per machine-hour, first, we have to compute the variable cost per machine hour which is shown below:

Variable cost per machine hour = Total variable production engineering cost ÷ machine hours

= $748,850 ÷ 8,500 machine hours

= $88.1

For 8,800 machine hours, the variable cost would be

= $88.1 × 8,800 machine hours

= $775,280

And the total fixed production engineering cost is $177,760.

So, the total production engineering cost is

= $775,280 + $177,760

= $953,040

And the per unit would be

= $953,040 ÷ 8,800 machine hours

= $108.30 per machine-hour

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Answer:

a) Oven A  = 1,667; Oven B = 2,353 pizzas.

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c) Oven A

d) 13,334 pizzas

Explanation:

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The income equation for ovens A and B, respectively, are:

A=(14-2)x-20,000\\B=(14-1.25)x-30,000

Where 'x' is the number of pizzas sold.

a) The break-even occurs when income is zero:

A=0=(14-2)x-20,000\\x_A=1,666.66\\B=(14-1.25)x-30,000\\x_B=2,352.94

Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.

b) For x = 9,000:

A=(14-2)*9,000-20,000\\A=\$88,000\\B=(14-1.25)*9,000-30,000\\B=\$84,750

Income is greater with oven A, so Janelle should use oven A.

c) For x = 12,000

A=(14-2)*12,000-20,000\\A=\$124,000\\B=(14-1.25)*12,000-30,000\\B=\$123,000

Income is greater with oven A, so Janelle should use oven A.

d) She should switch ovens at the value for 'x' that causes B to be greater than A:

A

Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.

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Marilyn County operates on a calendar year basis. It uses a Capital Projects Fund to account for major capital projects and a De
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Answer:

Marilyn County

1. Journal Entries:

1. January 1, 2013,

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2. May 1,

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3. July 1

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Credit Debt Service Fund $70,000

To record the payment of the debt service with semi-annual interest.

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Explanation:

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1. January 1, 2013, Capital Projects Fund $1,000,000 General Obligation Bonds Payable $1,000,000

2. May 1, Capital Projects Fund $20,000 General Fund $20,000

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