Question

In: Accounting

Doggie Pals produces 110 000 dog collars each month that give off a fresh scent to...

Doggie Pals produces 110 000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths. Total manufacturing costs are $ 220000. Of this​ amount, $ 140000 are variable costs. What are the total production costs when 135 000 collars are​ produced? (Assume both production levels are in the same relevant range. Round intermediate calculations to the nearest cent and the final answer to the nearest​ dollar.) A. $ 251450 B. $ 171450 C. $ 391450 D. $ 91 450

Solutions

Expert Solution

The Answer is $ 2,51,450

Variable Cost / Unit = $ 1,40,000 / 1,10,000 Dog Collars

                                    = $ 1.27 / Unit

Fixed Cost = Total Manufacturing cost – Variable cost

                        = $ 2,20,000 - $ 1,40,000

                        = $ 80,000

Therefor, Total Production cost for producing 1,35,000 Dog Collars

                                    = ( $ 1.27 x 1,35,000 ) + $ 80,000

                                    = $ 17,1,450 + $ 80,000

                                    = $ 2,51,450


Related Solutions

Doggie Pawz produces two models of dog beds: rectangle and circle. The following information about the...
Doggie Pawz produces two models of dog beds: rectangle and circle. The following information about the costs to produce the company’s products has been provided. Category Estimated Cost Cost Driver Rectangle Circle Unit-Level $293, 000 Labor Hours 200 300 Batch-Level $45, 000 Inspections 19 15 Product-Level $390,000 Storage Space 2900 sq. ft 3700 sq.ft Facility-Level $125,000 Machine Hours 4,000 7,000 a. If all costs are allocated based on machine hours, what is the rate per machine hour? b. If all...
Two manufacturers, Take-A-Paws (Paws) and Raise-The-Woof (Woof), each make dog collars and dog leashes, and they...
Two manufacturers, Take-A-Paws (Paws) and Raise-The-Woof (Woof), each make dog collars and dog leashes, and they each operate 10 hours a day. Paws has 10 workers and Woof has 20 workers. In a given hour, Paws can produce 3 collars or 4 leashes, whereas Woof can produce 7 collars or 5 leashes. Part 1. Indicate whether the following statements are true (T) or false (F) and explain why: A. Since Woof has the absolute advantage in collars, Woof should produce...
Consider two investments: Invest $1000 and receive $110 at the end of each month for the...
Consider two investments: Invest $1000 and receive $110 at the end of each month for the next 10 months. Invest $1200 and receives $130 at the end of each month for the next 10 months. If this were your money, and you want to earn at least 12% interest on your money, which investment would you make, if any? What nominal interest rate do you earn on each investment? (show all equations)
A loan of $30,000 is paid off in 36 payments at the end of each month...
A loan of $30,000 is paid off in 36 payments at the end of each month in the following way: Payments of $750 are made at the end of the month for the first 12 months. Payments of $750 + x are made at the end of the month for the second 12 months. Payments of $750 + 2x are made at the end of the month for the last 12 months. What should x be if the nominal monthly...
A stock price is currently priced at £110. Over each of the next two three-month periods...
A stock price is currently priced at £110. Over each of the next two three-month periods it is expected to down by 7% or go up by 8%. The risk-free interest rate is 5% per annum with continuous compounding. What is the value of a six-month European call option with a strike price of £105? If possible, please provide a detailed step by step as I would like to fully comprehend it rather than just copying it. Thank you :)
The Bandit’s Beagle Company produces wood dog houses that sell for $400 each. Budgeted sales for...
The Bandit’s Beagle Company produces wood dog houses that sell for $400 each. Budgeted sales for the first four months are as follows: Month                        Budgeted Sales (units) January                       1,000 February                            1,500 March                                2,500 April                                  2,000 Each dog house requires 20 square feet of oak at a cost of $10 per square foot. The company wants to maintain an inventory of dog houses equal to 10% of the following month’s sales. Inventory on January 1 consisted of 80 dog houses. The...
Give an example of each: - off-balance sheet financing - primary advantages and disadvantages of issuing...
Give an example of each: - off-balance sheet financing - primary advantages and disadvantages of issuing preferred stock - economic benefits that mergers can provide, as well as their potential for reducing competition -the pros and cons of ERM
Amanda keeps bees to produce honey. Each hive produces $350 worth of honey each month. The...
Amanda keeps bees to produce honey. Each hive produces $350 worth of honey each month. The table below shows Amanda’s marginal cost of tending each bee hive and her private marginal benefit, which is equal to the market value of the honey each hive produces. Marginal Cost and Marginal Benefit Quantity (hives) MCprivate MBprivate MBexternal MBsocial 1 $50 $350 $   $   2 150 350 3 250 350 4 350 350 5 450 350 Instructions: Enter your answers as a whole...
Your parents are going to give you $200 at the end of each month for 4...
Your parents are going to give you $200 at the end of each month for 4 years while you are in college. At a 0.5% monthly discount rate, what are these payments worth to you when you first start college?
produces several types of pickled vegetables. The company budgets for each quarter in the last month...
produces several types of pickled vegetables. The company budgets for each quarter in the last month of the previous quarter. In early March, Karen is preparing the budget for pickled beets. Budgeted sales are 13200 jars for April, 16500 jars for May, and 21000 jars for June. Each jar requires 1.3 pounds of beets. The pickling process takes 60 minutes for 20 jars. Because pressurized cooking is used, the processing is monitored by an employee at all times. Each jar...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT