Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,600 units
| Per Unit | Total | |
| Direct materials | $18 | |
| Direct labor | $5 | |
| Variable manufacturing overhead | $16 | |
| Fixed manufacturing overhead | $358,400 | |
| Variable selling and administrative expenses | $3 | |
| Fixed selling and administrative expenses | $51,200 |
The company uses a 43% markup percentage on total cost.
(a)
Compute the total cost per unit. Total cost per unit = $_______
Compute the target selling price. Target selling price = $_______
In: Accounting
Please use the payback period analysis technique to analyze the cost and benefits of this project. With discount factor of 10%, the project will recover the investment in year three. please provide the numbers in the table.
|
Cash Flow |
Year 0 |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
Cost 1 |
10,000 |
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|
Cost 2 |
5000 |
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|
Discount factor 10% |
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|
Total costs |
15000 |
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|
Benefit 1 |
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|
Benefit 2 |
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|
Total Benefits |
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|
Present Value Total Costs |
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Present Value Total Benefits |
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NPV (PV benefits- PV costs) |
In: Finance
Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even point of 60,000 units. What will be the new break-even point in units if variable costs decrease by $3 per unit and fixed costs increase by $100,000?
93,333 units
33,333 units
50,000 units
200,000 units
At the break-even point:
Sales would be equal to total costs.
Contribution margin would be equal to total fixed costs.
Sales would be equal to fixed costs.
Both sales would be equal to total costs and contribution margin would be equal to total fixed costs are correct.
Which of the following statements about a cost-volume-profit graph is correct?
A cost-volume-profit graph is prepared with activity (number of units) on the vertical axis.
The intersection of the total sales line and the total cost line represents the break-even point.
The area above the break-even point represents the area of loss.
The total cost line intersects the vertical axis at the dollar amount of total variable costs.
Joseph Company has variable costs of $80 per unit, total fixed costs of $200,000, and a break-even point of 5,000 units. If the variable cost per unit decreases by $8, how many units must Joseph Company sell to break-even?
2,778 units
2,500 units
6,250 units
4,167 units
In: Accounting
Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (Model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $10 per year per unit, and he has estimated that each order costs $25 to place. The purchase cost is $500 per unit.
For the order quantities Q = {25, 50, 75, 100, 125, 150}, find the annual setup ordering cost (S*D/Q), holding cost (H*Q/2), purchasing cost (C*D), and the total annual cost (including the purchase cost) Report the results for order quantity 25 in Answersheet (3 points).
Report the Q value with the minimum total cost (select from the list in cell B12) and the corresponding total cost in Answersheet (2 points).
In: Operations Management
Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system
| August | 1 | Beginning Inventory | 150 | Units of product A @ | $1700 | total cost | ||
| 5 | Purchased | 170 |
|
$2716 | total cost | |||
| purchased | 270 |
|
$5716 | total cost | ||||
| Sold | 230 |
|
Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.
Do not round until your final answers. Round your final answers to the nearest dollar.
In: Accounting
Sherri's Tan-O-Rama is a local tanning salon. The following
information reflects its number of appointments and total costs for
the first half of the year:
| Month | Number of Appointments | Total Cost | |
| January | 150 | 5,600 | |
| February | 500 | 7,000 | |
| March | 375 | 6,600 | |
| April | 300 | 5,100 | |
| May | 325 | 5,800 | |
| June | 475 | 6,900 | |
Using the high-low method, calculate the total fixed cost per month
and the variable cost per tanning appointment. (Round your
"Variable Cost per Unit" answer to 2 decimal places and "Fixed
Cost" answer to the nearest dollar amount.)
In: Accounting
Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.
| Percent Completed | |||
| Units | Materials | Conversion | |
| Work in process, beginning | 72,000 | 70% | 40% |
| Started into production | 358,500 | ||
| Completed and transferred out | 348,500 | ||
| Work in process, ending | 82,000 | 75% | 25% |
| Materials | Conversion | |||
| Work in process, beginning | $ | 26,900 | $ | 9,400 |
| Cost added during June | $ | 288,800 | $ | 200,930 |
Calculate the Blending Department's equivalent units of production for materials and conversion in June.
|
Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. (Round your answers to 2 decimal places.)
|
Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)
|
Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)
|
Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places.)
|
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In: Accounting
The following information for the past year is available from
Thinnews Co., a company that uses machine hours to apply factory
overhead:
| Actual total factory overhead cost | $24,000 |
| Actual fixed overhead cost | $10,000 |
| Budgeted fixed overhead cost | $11,000 |
| Actual machine hours | 5,000 |
| Standard machine hours for the units manufactured | 4,800 |
| Denominator volume—machine hours | 5,500 |
| Standard variable overhead rate per machine hour | $3 |
1.The total actual variable factory overhead cost incurred
during the year was:
2.The standard fixed overhead application rate is:
3. The variable factory overhead efficiency variance is:
4. The variable overhead spending variance is:
5. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:
6. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:
In: Accounting
In: Economics
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:
a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added.
| Quality Control Activities | Activity Cost | Quality Cost Classification | Value-Added/ Non-Value-Added Classification |
|
| Billing error correction | $48,600 | |||
| Cable signal testing | 114,000 | |||
| Reinstalling service (installed incorrectly the first time) | 104,600 | |||
| Repairing satellite equipment | 53,200 | |||
| Repairing underground cable connections to the customer | 31,600 | |||
| Replacing old technology cable with higher quality cable | 146,800 | |||
| Replacing old technology signal switches with higher quality switches | 167,800 | |||
| Responding to customer home repair requests | 58,400 | |||
| Training employees | 35,000 | |||
| Total activity cost | $760,000 | |||
b. Prepare a cost of quality report. Assume that sales are $3,040,000. If required, round percentages to one decimal place.
| Three Rivers Inc. | |||
| Cost of Quality Report | |||
| Quality Cost Classification | Quality Cost | Percent of Total Quality Cost | Percent of Total Sales |
| Prevention | $ | % | % |
| Appraisal | % | % | |
| Internal failure | % | % | |
| External failure | % | % | |
| Total | $ | % | % |
c. Prepare a value-added/non-value-added analysis.
| Three Rivers Inc. | ||
| Value-Added/Non-Value-Added Activity Analysis | ||
| Category | Amount | Percent |
| Value-added | $ | % |
| Non-value-added | % | |
| Total | $ | % |
d. What percentage of total costs of quality
are considered to be value-added?
In: Accounting