You are the manager of a project to improve the healthcare insurance claims auditing process. For each day that the claims auditing process takes, there is an associated cost of $1,700 so this cost is saved for each day reduction in the project completion time. Following is the information for the healthcare claims auditing process. The normal time and crash time are the times it will take to complete each activity under each of those scenarios (normal and crash). The Total Normal Cost and the Total Crash Cost are the total costs for completing that activity in that time.
|
Activity |
Normal Time (days) |
Crash Time (days) |
Total Normal Cost |
Total Crash Cost |
Immediate Predecessor(s) |
|
A |
6 |
4 |
$4,000 |
$6,000 |
-- |
|
B |
4 |
2 |
$4,000 |
$7,000 |
-- |
|
C |
6 |
3 |
$3,000 |
$6,000 |
B |
|
D |
6 |
5 |
$4,500 |
$5,000 |
A |
|
E |
3 |
3 |
$10,000 |
$10,000 |
C |
In: Operations Management
The total costs incurred in 2019 at various output levels in a factory have been measured as follows:
|
Output (Units) |
Total Cost ($) |
|
40 |
1800 |
|
70 |
2,400 |
|
80 |
2,600 |
|
100 |
3,000 |
|
160 |
4,200 |
When output is 200 units or more, another factory unit must be rented and fixed costs therefore increase by 50%. Variable cost per unit is forecast to rise by 20% at the start of 2020.
Required:
Using the high-low method and least squares method-
a. Calculate the Variable cost per unit.
b. Calculate Total Fixed Cost.
c. Develop the cost function that links Cost to Output (2020).
d. Calculate the estimated total costs of producing 200 units in 2020.
e. Calculate the estimated output if total cost is $15,400 in 2020.
In: Accounting
Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 88,400 to 142,800 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.
| Memory chips produced | 88,400 | 109,200 | 142,800 |
| Total costs: | |||
| Total variable costs | $33,592 | d. $ | j. $ |
| Total fixed costs | 37,128 | e. | k. |
| Total costs | $70,720 | f. $ | l. $ |
| Cost per unit | |||
| Variable cost per unit | a. $ | g. $ | m. $ |
| Fixed cost per unit | b. | h. | n. |
| Total cost per unit | c. $ | i. $ | o. $ |
In: Accounting
Relevant Range and Fixed and Variable Costs
Child Play Inc. manufactures electronic toys within a relevant range of 20,000 to 150,000 toys per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Complete the cost schedule. When computing the cost per unit, round to two decimal places.
| Toys produced | 40,000 | 80,000 | 120,000 | ||
| Total costs: | |||||
| Total variable costs | $720,000 | d. $ | j. $ | ||
| Total fixed costs | 600,000 | e. | k. | ||
| Total costs | $1,320,000 | f. $ | l. $ | ||
| Cost per Unit | |||||
| Variable cost per unit | a. $ | g. $ | m. $ | ||
| Fixed cost per unit | b. | h. | n. | ||
| Total cost per unit | c. $ | i. $ | o. $ |
In: Accounting
A monopolistic competitor produces 100 units of a good at a per-unit cost of $22. If it charges a price of $19 per unit of the good, it will ________.
A. earn zero economic profits in the short run
B. incur a loss of $300 in the short run
C. earn a profit of $1,900 in the short run
D. incur a loss of $100 in the short run
A monopolistically competitive firm makes positive economic profits if ________.
A. price is less than average total cost
B. price is higher than average total cost
C. price equals marginal cost
D. price equals average fixed cost
A monopolistic competitor earns zero economic profits if ________.
A. price is higher than average total cost
B. price is lower than marginal cost
C. price is equal to marginal cost
D. price is equal to average total cost
A monopolistic competitor incurs losses if ________.
A. price is higher than average total cost
B. price is lower than marginal cost
C. price is equal to marginal cost
D. price is lower than average total cost
Firm A charges $8.50 for each unit of Good X. If the average total cost of producing 1,000 units of Good X is $12 and the market for Good X is monopolistically competitive, Firm A ________ by producing 1,000 units of Good X.
A. earns a profit of $3,500
B. earns a profit of $1,000
C. incurs a loss of $1,000
D. incurs a loss of $3,500
Suppose a monopolistic competitor produces 2,000 units of the good in equilibrium and charges a price of $10 for each unit. If the average total cost of producing 2,000 units of the good is $6, what is the total profit earned by the producer?
A. $8,000
B. $4,000
C. $2,000
D. $20,000
In: Economics
Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,600 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $760,050 in total. The ending work in process inventory in January consisted of 3,700 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
| Materials | Labor | Overhead | |||||||
| Cost per equivalent unit | $ | 14.50 | $ | 4.40 | $ | 7.10 | |||
Required:
1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.
2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.
3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.
4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)
1.Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.
|
2.
Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.
|
3.
Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.
|
4.
Prepare a cost reconciliation for January.
|
||||||||||||
In: Accounting
Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,800 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $694,688 in total. The ending work in process inventory in January consisted of 3,800 units, which were 50% complete with respect to materials and 30% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:
| Materials | Labor | Overhead | |||||||
| Cost per equivalent unit | $ | 13.70 | $ | 4.90 | $ | 6.80 | |||
Required:
1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.
2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.
3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.
4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)
Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.
|
Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.
|
Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.
|
Prepare a cost reconciliation for January.
|
|||||||||
In: Accounting
Kubin Company’s relevant range of production is 27,000 to 29,000 units. When it produces and sells 28,000 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 8.70 |
| Direct labor | $ | 5.70 |
| Variable manufacturing overhead | $ | 3.20 |
| Fixed manufacturing overhead | $ | 6.70 |
| Fixed selling expense | $ | 5.20 |
| Fixed administrative expense | $ | 4.20 |
| Sales commissions | $ | 2.70 |
| Variable administrative expense | $ | 2.20 |
Required:
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 28,000 units?
b. What is the total indirect manufacturing cost incurred to make 28,000 units?
1. Assume the cost object is units of production:
a. What is the total direct manufacturing cost incurred to make 28,000 units? (Round per unit values to 2 decimal places.)
b. What is the total indirect manufacturing cost incurred to make 28,000 units? (Round per unit values to 2 decimal places.)
|
2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department?
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
2. Assume the cost object is the Manufacturing Department and that its total output is 28,000 units.
a. How much total manufacturing cost is directly traceable to the Manufacturing Department? (Round per unit values to 2 decimal places.)
b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?
Show less
|
3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $117,600 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.
a. When the company sells 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives?
b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $117,600 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.
a. When the company sells 28,000 units, what is the total direct selling expense that can be readily traced to individual sales representatives? (Round per unit value to 2 decimal places.)
b. When the company sells 28,000 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?
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In: Accounting
Suppose that at the certain factory setup cost is directly proportional to the number of machines used, and operating cost is inversely proportional to the number of machines used. Show that when the total costs is minimal, the setup cost is equal to the operating cost. Hint: Total cost = setup cost + operating cost)
In: Math
Costing Meats figure out the cost of one serving of pork roast if: As Purchased (AP) cost is $2.70 a pound AP weight is 12 pounds After trim and Roasting Edible Portion (EP) is 9.5 pounds and the serving size is 8 oz. Total AP cost? =2.70*12 EP cost per pound? =32.40/9.5 EP cost per ounce? =3.41/16 cost per serving? =.213*8 1 figure out the cost of one serving of roast beef if: As Purchased (AP) cost is $2.95 a pound AP weight is 15 pounds After trim and Roasting Edible Portion (EP) is 13 pounds and the serving size is 8 oz. Total AP cost? EP cost per pound? EP cost per ounce? cost per serving? 2 figure out the cost of one serving of strip steak if: As Purchased (AP) cost is $4.20 a pound AP weight is 15 pounds After trim and Roasting Edible Portion (EP) is 11 1/4 pounds and the serving size is 13 oz. Total AP cost? EP cost per pound? EP cost per ounce? cost per serving? 3 figure out the cost of one serving of top round if: As Purchased (AP) cost is $2.25 a pound AP weight is 17 pounds After trim and Roasting Edible Portion (EP) is 14 pounds and the serving size is 6 oz. Total AP cost? EP cost per pound? EP cost per ounce? cost per serving? 4 figure out the cost of one serving of random chicken breast if: As Purchased (AP) cost is $2.25 a pound AP weight is 25 pounds There is a 90% yield, so how much usable chicken do you have? and the serving size is 6 oz. Total AP cost? EP cost per pound? EP cost per ounce? cost per serving? 5 figure out the cost of one serving of pepper and onion: Yield - weight after prep A 10 lb case on onions cost $5.50 and has an 85% yield Yield of onions: A 10 lb case of peepers coat $12.00 and has a 80% yield Yield of peppers: A serving of onions and peppers is 4oz (raw) Total AP cost of onion? Total AP cost of pepper? Total AP cost of onion and pepper? Adding all the prepped peppers and onions what Is the total (EP) weight? EP cost per pound? EP cost per ounce? cost per serving?
In: Economics