7) If 8,800 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)

Average fixed manufacturing cost per unit produced                   

8) If 13,300 units are produced, what is the average fixed manufacturing cost per unit produced?

Average fixed manufacturing cost per unit produced                  

9) If 8,800 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs             

10) If 13,300 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? Total amount of fixed manufacturing costs             

13) If the selling price is $21.80 per unit, what is the contribution margin per unit sold?   Contribution margin per unit               

14a) If 11,800 units are produced, what are the total amount of direct manufacturing costs incurred to support this level of production? Total direct manufacturing costs                

14b) If 11,800 units are produced, what are the total amount of indirect manufacturing costs incurred to support this level of production? Total indirect manufacturing costs              

What total incremental cost will Martinez incur if it increases production from 10,800 to 10,801 units? Incremental cost per unit produced   

The management of Ethan plc is trying to decide on a cost of capital to apply to the evaluation of investment projects. The company has an issued share capital of 500,000 ordinary K1 shares, with a current market value cum-div of K1.17 per share. It has also issued K200,000 of 10% debentures, which are redeemable at par in five years’ time and have a current market value of K105.30 cum-interest, and K100,000 of K1 irredeemable 6% preference shares, currently priced at K0.40 per share ex-div. The preference dividend has just been paid, and the ordinary dividend and debenture interest are due to be paid in the near future.
Management considers the current capital structure of the company to be similar to their plans for its long-term capital structure.
The ordinary share dividend will be K60,000 this year, and the Directors have published their view that earnings and dividends will increase by 5% a year into the indefinite future. The company pays tax at 25% per year in the same year as profits.
Required:
a) Calculate the WACC.
b) Discuss the importance of the cost of capital in project appraisal and highlight the impact
that a wrong discount rate would have on decision making.

The management of Ethan plc is trying to decide on a cost of capital to apply to the evaluation of investment projects. The company has an issued share capital of 500,000 ordinary K1 shares, with a current market value cum-div of K1.17 per share. It has also issued K200,000 of 10% debentures, which are redeemable at par in five years’ time and have a current market value of K105.30 cum-interest, and K100,000 of K1 irredeemable 6% preference shares, currently priced at K0.40 per share ex-div. The preference dividend has just been paid, and the ordinary dividend and debenture interest are due to be paid in the near future.
Management considers the current capital structure of the company to be similar to their plans for its long-term capital structure.
The ordinary share dividend will be K60,000 this year, and the Directors have published their view that earnings and dividends will increase by 5% a year into the indefinite future. The company pays tax at 25% per year in the same year as profits.
Required:
a) Calculate the WACC.
b) Discuss the importance of the cost of capital in project appraisal and highlight the impact
that a wrong discount rate would have on decision making.

Allione plc is trying to decide on a cost of capital to apply to the evaluation of investment projects. The company has an issued share capital of 600,000 ordinary K1 shares, with a current market value cum-div of K1.18 per share. It has also issued K300,000 of 10% debentures, which are redeemable at par in five years’ time and have a current market value of K105.30 cum-interest, and K100,000 of K1 irredeemable 6% preference shares, currently priced at K0.40 per share ex-div. The preference dividend has just been paid, and the ordinary dividend and debenture interest are due to be paid in the near future. Management considers the current capital structure of the company to be similar to their plans for its long-term capital structure. The ordinary share dividend will be K50,000 this year, and the Directors have published their view that earnings and dividends will increase by 5% a year into the indefinite future. The company pays tax at 25% per year in the same year as profits.

Required:

a) Calculate the WACC.

b) Discuss the importance of the cost of capital in project appraisal and highlight the impact that a wrong discount rate would have on decision making.

2 The management of Ethan plc is trying to decide on a cost of capital to apply to the evaluation of investment projects. The company has an issued share 'capital of 500,000 ordinary $l shares, with a current market value cum-div of $l.17 per share. It has also issued $200,000 of 10 debentures, which are redeemable at par in five years' time and have a current market value of$105.30 cum-interest, and $lOO,OOO of $l irredeemable 6 preference shares, currently priced at $0.40 per share ex-div. The preference dividend has just been paid, and the ordinary dividend and debenture interest are due to be paid in the near future. Management considers the current capital structure of the company to be similar to their plans for its long-term capital structure. The ordinary share dividend will be $60,000 this year, and the Directors have published their view that earnings'and dividends will increase by 5 a year into the indefinite future. The company pays tax at 25 per year in the same year as profits. Required: a) Calculate the WACC. b) Discuss the importance of the cost of capital in project appraisal .and highlight the impact that a wrong discount rate would have on decision making.

Selling price is $10/tin. The cost is $8/tin This includes $6 of direct material and $1.50 of direct labor. Direct labor is 1 hour per 100 tins. Annual manufacturing overhead is estimated at $100,000 for the expected sales of 200,000 tins. The breakdown for manufacturing overhead includes 85% of variable costs.

1a. What is the standard fixed manufacturing overhead cost per tin?

b. The Volume Variance is $750 Favorable. How many units were actually produced during the year?

c. How much is total budgeted fixed manufacturing overhead?

d. The Controllable Variance is $3250 Unfavorable. What was the total dollar amount for actual manufacturing overhead?

e. What are the total standard hours allowed for actual production?

6. The Labor Quantity Variance is $300 Unfavorable. How many total actual hours were worked?

7. What is the total standard cost of direct materials for total actual production?

8. Total Material Price Variance is $16,800 Unfavorable. What was the actual direct material cost for total actual production?

2. Complete the following cost schedule. Round to two decimal places. Answer the questions below
    after completing the table.

a. Use the cost data above to graph the ATC and MC curves.
b. At what output rate is ATC minimized?

Consider a firm that has just built a plant, which cost $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below.

Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

repare a quantitative comparison of the traditional and activity-based cost assignments. (Round your intermediate calculations to 2 decimal places and "Percentage" answers to 1 decimal place.)

The overhead budget shows forecasted variable and fixed overhead costs for the coming year.  For Texas Rex the variable overhead rate is $5 per direct labor hour.  Fixed overhead is budgeted at $1645 per quarter.

Overhead BudgetFor the year ending December 31, 2018

                                                Q1                    Q2                    Q3                    Q4                    Total

Budgeted Direct Labor hours

Variable Overhead Rate             _______           _______           ________         ________       _______

Budgeted Variable Overhead     

Budgeted Fixed Overhead         _______           _______           ________         _______       ________

Total Overhead Cost

Calculate the Total Unit Cost:

                Direct Materials

                Direct Labor

                Overhead                 

                Total Unit Cost