Question

In: Accounting

                                          &nb

                                                                          

               To build the chairs and tables, a machine was purchased and workers were hired. Part of the manufacturing process for both products is automated, and part of the manufacturing process for both products is done by hand.                                                        

                             

               The number of each product to be produced is as follows:                                                        

                                                                          

               Yearly Number Of Chairs To Be Produced              104,000                                            

               Yearly Number Of Tables To Be Produced              80,000                                

                                                                          

               It is determined that to produce each product, the following materials are needed:                                                           

Per chair

Per table

Square feet of wood

27

127

Square feet of fabric

9

7

Square feet of foam

7

5

               Materials can be purchased for the following amounts:                                               

              

Wood

Fabric

Foam

Purchase price per square foot

0.23

0.52

0.13

               It takes the following amounts of time to produce each product. Workers who produce each product are also paid the following hourly wage:                                               

Chair

Table

Minutes to produce each product

10

25

Worker hourly wage

$17.00

$22.00

               It has been determined that the production process for both chairs and tables involves the following activities with their related activity drivers:                                                                                                       

Production activities

Activity Driver

Type

Machine setups

Number of setups

Variable

Materials moves

Number of materials moves

Variable

Machining

Machine Hours

Variable

Quality control

Hours of analysis

Fixed

Inspections

Number of inspections

Fixed

              

               It has been determined that each activity will require the following amounts of money and each product will consume the following amounts of each activity driver:                                                   

                                                           

Active drivers

Total dollars of each activity

chairs

Tables

Machine setups: number of setup

$55,000

72

47

Mater moves: number of material moves

$35,000

42

57

Machining: machine hours

$60,000

17,200

23,200

Quality Control: Hours of Analysis

$78,000

10,200

12,200

Inspections: number of inspections

$78,000

700

950

              

               1) Direct Materials Cost per Chair and Table                                                                                   

               2) Direct Labor Cost per Chair and Table                                             

               3) Factory Overhead Cost per Chair and Table                                                  

               4) Total Cost Per Chair and Table                                                           

               5) Variable Cost per Chairs and Table                                                   

               6) Fixed Cost per Chair and Table             

Solutions

Expert Solution


Related Solutions

                                          &nb
                                                               $ Sales 10,000,000 Cost of sales                                   (6,000,000) Gross profit 4,000,000 Expenses                                        (3,000,000) Net profit 1,000,000 It had been budgeted to produce 200,000 units and these should have taken 10 hours each. In fact, 120,000 units were produced in 580,000 hours. The capital employed by the division is $4,000,000 and the interest rate is 7%. Calculate: (a) Efficiency, capacity utilisation and production volume ratios or percentages (b) ROCE (Return on Capital Employed) (c) RI (Residual Income)
                                          &nb
                                                                                                Assembly                    Customizing Total machine hours                                                               19,000                         15,000 Direct labor hours                                                                   4,000                           6,000 Fixed manufacturing overhead                                               $100,700                     $63,000 Variable manufacturing overhead per machine hour             $2.00                           - Variable manufacturing overhead per labor hour                   -                                   $3.90 Overhead rate based on:                                                         Machine hour              Labor hour 18. What is the predetermined overhead rate for the Assembly department? 19. What is the predetermined overhead rate for the Customizing department?
                                          &nb
                                                       The marketing manager of a national brand of flavored milk is considering her micro and macro environment in order to complete the situation analysis for this years marketing plan. She notes some key points. Small traders are not consistently affording appropriate fridge space to flavored milks. Energy drinks are continuing to hold favour in the teen market. Young adults aged 18-25 are more conservative than their slightly older cohort 25-35. UHT or long life milk has processed to the...
                                          &nb
                                                          Balance Sheet 2019 2020 2021 Asset Current Asset Cash ? ? ? Accounts Receivable 120000 100000 150000 Prepaid Expenses 8000 5000 2000 Future Tax Asset ? ? ? Long-term Asset ? Total Assets Liabilities Current Liabilities Accounts Payable 100000 80000 90000 Unearned Revenue 10000 8000 12000 Future Tax Liabilities ? ? ? Long-term Liabilities ? Total Liability Shareholders' Equity Retained Earnings ? ? ? Common Equity 200000 200000 200000 Total Shareholders' Equity Total Liability and Equity Company A started...
                                          &nb
                                                Units Cost per unit Total Beginning inventory 60 $10                Puirchase 3/31 40 $11                  Purchase 4/30 40 $12                  Purchase 5/31 60 $13                   Total 200                                           There are a total of 200 units. 80 units were left in ending inventory. Calculate the following under the periodic method for costing inventory: Compute ending inventory using FIFO. Compute cost of merchandise sold using FIFO. Compute ending inventory using LIFO.                  Compute cost of merchandise sold using FIFO. Compute ending inventory using weighted average cost.   Compute...
                                          &nb
                                                            1st Quarter        2nd Quarter       3rd Quarter       4th Quarter Total Cash Receipts                              $150,000         175,000           100,000           450,000 Total Cash Disbursements                     $170,000         250,000           100,000           320,000 The company’s beginning cash balance for the upcoming fiscal year will be $40,000. The company requires a minimum cash balance of $15,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest...
                                          &nb
                                                           Question Two Faulu College has a total of 52 students undertaking three courses namely; Business Mathematics, Economics and Law. During recently conducted examinations, 13 students excelled in Business Mathematics and Law, 16 students excelled in Business Mathematics and Economics and 12 students excelled in Law and Economics. The number of students that excelled in Economics was 24 while 2 students excelled in none of the three courses. The number of students who excelled in Business Mathematics only was...
                                          &nb
                                                            Continuous Probability Distributions You must draw diagram for each question and show all workings. Answers without clearly labelled diagrams and workings will not score full marks. Before we can use the Z tables, we have to standardise the normal variable (X) first, i.e. converting X into Z score. THA 4 will assess you on your ability of applying the standardisation formula and using the Z and inverse Z tables. Question 1 Stock Returns Stock returns are often assumed to...
                                          &nb
                                                           (4 points) Production Possibility Frontiers: apples and wheat Table 1. Production of apples and wheat Apples Wheat 0            500 1            499 2            495 3            489 4            476 5            453 6            415 7            358 8            275 9            160 10                 5 (1 point) Draw a production possibilities curve for your two-acre farm between growing apples and wheat. Is there a tradeoff between these two? How is a tradeoff shown in...
                                          &nb
                                                                                PROBLEM 1 Required: Part 1: Complete a Balance Sheet and analyze using vertical and horizontal analysis. Then answer a few questions regarding the absolute (dollar) changes. Part 2: Complete a Summary Operating Statement (Income Statement) and analyze using vertical and horizontal analysis. Part 3: Complete a Statement of Cash Flows. Part 1: Below are the balance sheet accounts and balances for The Cougar Hotel for the years 20X7 and 20X8, please complete the following: 1.    Organize the information into...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT