Question

In: Economics

Annual manufacturing cost data (1000s) for four product lines are as follows: Data Line 1 Line...

Annual manufacturing cost data (1000s) for four product lines are as follows:

Data

Line 1

Line 2

Line 3

Line 4

Annual production

4000

2500

9800

675

Cost of direct materials

$800

$650

$1200

$2500

Cost of direct labor

$3500

$3750

$600

$320

Rank the product lines from lowest to highest in terms of manufacturing cost per unit. Total indirect costs of $10,8 million are allocated based on total direct cost. (Please show work)

Solutions

Expert Solution

Ranking is 3-1-2-4

The excel calculation and formula used are shown below:

Please don't forget to rate the answer if its helpful, thank you.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Ralston Company has four product lines. The Machining product line produces specialized equipment for Oil and...
Ralston Company has four product lines. The Machining product line produces specialized equipment for Oil and Gas exploration companies. Currently, a plant-wide rate is used to allocate overhead based on $1,000,000 total budgeted overhead and 20,000 machine hours budgeted for the year. Mike Bryer, product line controller, has heard about ABC and would like to see if using ABC would make a difference compared to the plant-wide allocation method in use now. The accounting staff has provided the following information...
Cost data for the single product-line company are as follows: Variable costs per unit: Direct materials...
Cost data for the single product-line company are as follows: Variable costs per unit: Direct materials $ 4 Direct labor 9 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 17 Fixed costs per month: Fixed manufacturing overhead $ 135,000 Fixed selling and administrative 169,000 Total fixed cost per month $ 304,000 The product sells for $50 per unit. Production and sales data for the following two months are as follows: Units Produced Units...
A product is being assembled and packaged on three production lines (line A, line B, and...
A product is being assembled and packaged on three production lines (line A, line B, and line C). Each day, the quality control team selects a production line and inspects a batch chosen at random from the output of the selected production line. Line A is selected with probability .5, line B is selected with probability .2, and line C is selected with probability .3. The probability that no defects will be found in a batch selected from line A...
The managers of Courtney Cabinets are considering dropping one of their product lines. The product line...
The managers of Courtney Cabinets are considering dropping one of their product lines. The product line typically has the following revenue and costs: Sales $120,000 Variable costs 90,000 Contribution margin 30,000 Fixed costs 35,000 Operating loss $ (5,000) If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $6,000 of additional contribution margin from the expansion of other product lines. If Courtney discontinues the product line, the effect on overall...
Square Manufacturing is considering investing in a robotics manufacturing line. Installation of the line will cost...
Square Manufacturing is considering investing in a robotics manufacturing line. Installation of the line will cost an estimated $9.7 million. This amount must be paid immediately even though construction will take three years to complete (years 0, 1, and 2). Year 3 will be spent testing the production line and, hence, it will not yield any positive cash flows. If the operation is very successful, the company can expect after-tax cash savings of $6.7 million per year in each of...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $310,000 $276,600 Work in process 215,200 238,400 Finished goods 162,800 190,100 January 31 Direct labor $565,000 Materials purchased during the month 604,800 Factory overhead incurred during the month: Indirect labor 60,440 Machinery depreciation 35,000 Heat, light, and power 13,600 Supplies 8,540 Property taxes 8,860 Miscellaneous costs 16,400 Required: a. Prepare a cost of goods manufactured statement for January. Refer...
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories...
Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $184,500 $158,670 Work in process 121,770 104,720 Finished goods 94,100 106,310 Direct labor $332,100 Materials purchased during January 354,240 Factory overhead incurred during January: Indirect labor 35,420 Machinery depreciation 21,400 Heat, light, and power 7,380 Supplies 5,900 Property taxes 5,170 Miscellaneous costs 9,590 a. Prepare a cost of goods manufactured statement for January. Disksan Manufacturing Company Statement of Cost...
Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories...
Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $207,600 $190,890 Work in process 430,920 504,560 Finished goods 579,510 608,850 Direct labor $3,460,000 Materials purchased during March 2,635,720 Factory overhead incurred during March: Indirect labor 316,340 Machinery depreciation 207,600 Heat, light, and power 173,000 Supplies 34,500 Property taxes 29,650 Miscellaneous costs 45,180 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $305,000 $277,200 Work in process 214,200 238,600 Finished goods 162,800 190,500 January 31 Direct labor $562,000 Materials purchased during the month 607,000 Factory overhead incurred during the month: Indirect labor 60,600 Machinery depreciation 36,000 Heat, light, and power 12,900 Supplies 8,100 Property taxes 8,720 Miscellaneous costs 16,300 Required: a. Prepare a cost of goods manufactured statement for January. Refer...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories...
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $142,500 $125,400 Work in process 98,330 86,530 Finished goods 72,680 85,270 Direct labor $256,500 Materials purchased during January 273,600 Factory overhead incurred during January: Indirect labor 27,360 Machinery depreciation 16,530 Heat, light, and power 5,700 Supplies 4,560 Property taxes 3,990 Miscellaneous costs 7,410 a. Prepare a cost of goods manufactured statement for January. Sandusky Manufacturing Company Statement of Cost...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT