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MAXImum [283]
3 years ago
7

Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for

fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13). The manufacturing cost of each unit is calculated using activity-based costing; using the following manufacturing cost pools.
Cost Pools Allocations base Costing rate
1- Materials handling Number of parts 2.40 per part
2- Manufacturing Supervision Hours of machine time 14.80 per hour
3- Assembly Number of parts 3.30 per part
4- Machine setup Each setup 56.50 per setup
5- Inspection and testing Logged hours 45.50 per hour
6- Packaging Logged hours 19.50 per hour
LCI currently sells the B-13 model for $1,690 and the F-32 model for $922. Manufacturing costs and activity usage for the two products are as follows:________.
B-13 F-32
Direct materials $150.50 $95.90
Number of parts 180.00 110.00
Machine Hours 7.50 6.20
Inspection time 1.50 1.25
Packaging time .75 .50
Set-ups 3.00 2.00
1) The product cost for model B-13 is calculated to be:
2) The product cost for model F-32 is calculated to be:
3) The product margin for model B-13 is calculated to be:
4) The product margin for model F-32 is calculated to be:
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

1.  Product cost for model B-13

Various Manufacturing cost =  Cost driver * Activity Rate

Materials handling = 180 parts x $2.40 = $432.00

Manufacturing Supervision = 7.50 machine hours x $14.80 = $111.00

Assembly = 180 parts * $3.30 = $594.00

Machine setup = 3 setups * $56.50 = $169.50

Inspection and testing = 1.50 inspection time * $45.50 = $68.25

Packaging = 0.75 packaging time * $19.50 = $14.63

Total Manufacturing cost =$432.00 + $111.00 +  $594.00 + $169.50   + $68.25  + $14.63  = $1389.38

Particulars                    Amount$

Direct Materials           150.50

Manufacturing cost     <u>1,389.38</u>

Total Product cost      <u>1,539.88</u>

The product cost for model B-13 is $1,539.88

2.  Product cost for model F-32

Various Manufacturing cost =  Cost driver * Activity Rate

Materials handling = 110 parts * $2.40 = $264.00

Manufacturing Supervision hours = 6.20 machine hours * $14.80 = $91.76

Assembly = 110 parts * $3.30 = $363.00

Machine setup = 2 setups * $56.50 = $113.00

Inspection and testing = 1.25 inspection time * $45.50 = $56.88

Packaging = 0.50 packaging time * $19.50 = $9.75

Total Manufacturing cost = $264.00  + $91.76  + $363.00 + $113.00  + $56.88 + $9.75 = $898.39

Particulars                Amount$

Direct Materials         95.90

Manufacturing cost   <u>898.39</u>

Total Product cost    <u>994.29</u>

Hence, the product cost for model F-32  is $994.29.

3. Particulars              Amount$

Sales                            1,690.00

Less: Product cost      <u>1,539.88</u>

Product Margin          <u>150.12</u>

Hence, the product margin for Model B-13 is $150.12

4. Particulars           Amount$

Sales                         922.00

Less: Product cost   <u>994.29</u>

Product Margin       <u>-72.29</u>

Hence, the product margin for Model F-32 is -$72.29

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Exercise 9-4 Direct Materials Variances [LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the
ANTONII [103]

Answer:

1. The standard quantity 2318kg

2. The standard materials cost allowed  $ 16226

3.Materials Spending Variance= 327 Unfavorable

4. The materials price variance 327 Unfavorable

5. The materials quantity variance 1330 Unfavorable

Explanation:

1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets= 3800* 0.61= 2318kg

2. The standard materials cost allowed (SQ × SP) to make 3,800 helmets= 3800*0.61*7= $ 16226

3. The materials spending variance= Purchase Price Variance= Actual Price *Actual Quantity - Standard Price * Actual Quantity

Materials Spending Variance= $16,553- $ 16226

Materials Spending Variance= 327 Unfavorable

4. The materials price variance =  (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity) =  $16,553- $ 16226= 327 Unfavorable

5. The materials quantity variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity) =( 7* 2,508)- (7*2318kg)= 17556-16226= 1330 Unfavorable

8 0
3 years ago
JKL Insurance Company reported the following information on its accounting statements last year:
sdas [7]

Answer:

1. $90, 000, 000/ $100, 000, 000

= 0.9  

2. $5, 000, 000 + $30, 000, 000 / $10, 000, 000

= 3.5

3. = ($90, 000, 000 + $5, 000, 000 + $30, 000, 000) / $100, 000, 000

= 1.25

= $10, 000, 000 / $90, 000, 000

= 0.1111

5.. = ($5, 000, 000 + $30, 000, 000 + $90, 000, 000) / $100, 000, 000 + $10, 000, 000

= 1.136

Explanation:

1. Loss ratio is the losses an insurer incurs due to paid claims as a percentage of premiums earned. A loss ratio is the difference between an insurance company's premiums compared to how much it pays out in claims

This is the formula to calculate the loss ratio:

The ratio is calculated by dividing the amount of premiums by the amount of premiums collected.

A low ratio means the insurance company is profitable. A high ratio means the company is less profitable. If the ratio is 1 or 100%, that means that the company is unprofitable.

JKL’s loss ratio:

Premiums written: $90, 000, 000

Premiums earned: $100, 000, 000

$90, 000, 000/ $100, 000, 000 = 0.9  : 1

2. Expense ratio measures how much of a fund's assets are used for administrative and other operating expenses. An expense ratio is determined by dividing a fund's operating expenses by the average dollar value of it assets (the total market value of the investments that a person or entity manages on behalf of clients.

JKL’s Expenses Ratio:  

            =    Total Fund Expenses / Total Fund Assets

            =     $5, 000, 000 + $30, 000, 000 / $10, 000, 000

            =      3.5  : 1

3. Combined Ratio:  measures an insurer’s profitability. it is merely a combination of the loss ratio and expense ratio. It measures the losses and expenses incurred in relation to the premiums earned.

JKL’s Combined Ratio:  

= ($90, 000, 000 + $5, 000, 000 + $30, 000, 000) / $100, 000, 000

= 1.25  : 1

4. Investment Ratio: is the ratio that an insurer uses in order to measure the company’s net investments to its premiums earned. The ratio compares the income from investments to income from its other activities. This ratio is also a measure of profitability.

= $10, 000, 000 / $90, 000, 000

= 0.1111  : 1

5. Overall Operating Ratio: this is the ratio that a insurer to show his profitability realized before taxation, taking into account investment income.

= ($5, 000, 000 + $30, 000, 000 + $90, 000, 000) / $100, 000, 000 + $10, 000, 000

= 1.136  : 1

7 0
3 years ago
I will give you fifty five point if you make Brainliest me but if you don't and it's just a scam I'm going to report you and the
gulaghasi [49]

Answer:

okay lol

Explanation:

answer my newest question and i'll give it to you <3

5 0
3 years ago
Wakefield Hospital has only one portable X-ray machine. The emergency room staff claim to have the greatest need for the machine
Anton [14]

Answer:

b. scarce resources.

Explanation:

Scarcity is one of the basic economic problems. Scarce resocurces means that resources needed to satisfy human wants are available in limited quantities.

In this question, the portable X-ray machine is the scare resource.

I hope my answer helps you

6 0
3 years ago
GDP is the: national income minus all non-income charges against output. monetary value of all final goods and services produced
olasank [31]

Answer:

The correct answer is: monetary value of all final goods and services produced within the borders of a nation in a particular year.

Explanation:

GDP of a nation can be defined as the monetary value of all the goods and services that are produced within the geographical boundaries of the nation in a year.

The GDP does not include intermediate goods and services as it may lead to double counting. The reselling of objects is also not included.

It is used to measure the health of a nation's economy. It shows the level of economic activities in a nation. An increase in GDP means economic growth.

6 0
3 years ago
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