Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $330,400. During that time, the company produced 14,400 units of the M-008 and 2,500 units of the M-123. The direct costs of production were as follows:

M-008 M-123 Total

Direct materials $ 115,200 $ 100,000 $ 215,200

Direct labor 115,200 50,000 165,200

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows:

Activity Level

Cost Driver Costs M-008 M-123 Total

Number of machine-hours $ 153,900 1,000 9,000 10,000

Number of production runs 80,000 20 20 40

Number of inspections 96,500 15 30 45

Total overhead $ 330,400

Required:

a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? (Round your intermediate calculations and final answers to 2 decimal places.)

b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 decimal places.)

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)

The coronavirus is hitting businesses and their employees. Some businesses are still open and millions of employees are working to serve customers. Some of the employees work in their workplaces while some others work from home. Almost all employees worry whether they will lose their jobs or if they will have a pay cut. It is obvious that unemployment will rise because millions of employees will lose their jobs and the remaining employees may have a pay cut (10, 20, 30, 50%) depending on the position in his/her workplace.

Because of the coronavirus, the business environment has started to change. It is becoming a challenging fast-changing environment. Currently, many managers are faced with difficulties. In the near future and in the long run, they will need to deal with important issues.

Lastly, you have to remember that one can easily manage firms during prosperous times but effective managers flourish during difficult times.

Below is a sample list of terms that you can use when answering the questions.

Job security and protection; Employee morale; Employee stress; Anxiety; Employee wellness; Effective decision making; Work performance; Key competencies; Productive employees; Quality of work produced; Work-life balance; Mental health; Employees in a high-risk health category; Illness; Government sector; Health sector; Security forces.

Q1-What should managers do to manage employees and minimize the negative effects of the coronavirus on employees? Discuss the major OB issues faced by managers when dealing with employees who are currently working and the major OB issues that managers need to handle in the near future.

Q2-What would be the possible changes and developments in the workforce and workplace diversity in the near future and in the long run? Discuss.

Q3-How should managers handle an employee that is unable to work due to age or health issues?

1.

value:
3.00 points

Required information

You run a manufacturing outfit that produces Widget, an electronic part that is used in automotive production. A certain expensive component—let’s call it Product X-- is one of the materials required in assembling each Widget.

Currently, you are purchasing Product X from a supplier at a cost of $1,000 per unit. You are contemplating to produce Product X in-house (instead of buying or outsourcing) for a variety of reasons, including more control of the product’s quality, lead time, and inventory. Manufacturing Product X in-house is subject to economies of scale. In particular, the learning curve applies to the labor content in manufacturing the product. As such, the average cost to manufacture Product X decreases as the number of units produced (Q) increases.

In order to assist you in making a choice between buying Product X from a supplier or making the part in house, develop a template using Excel for evaluating the total costs, as well as average cost, for the Buy and Produce options under varying levels of annual demand (Q) for Product X.

Additional information (inputs to your comparative analysis) for the Produce option is as follows:

• Setup Cost (FC):                                                                  $1,000
• The Material Cost per Unit (TMC):                                          $250
• Labor Hours to Produce the First Unit (T1):                          8 hours
• Learning Percentage (L%):                                                         90%
• Labor Cost (including benefits) per Hour (LCpH): $75
• Overhead Cost (OHC):                                                                20% of labor, material, and fixed cost
• Purchase cost per unit (PuC)                                                     $1000

1. Create an X,Y line graph for the Make Option. The X-axis of the graph is Q (quantity produced). The Y-axis should only include the total fixed cost, total labor cost, total material cost, total overhead cost, and total cost. Name and label the graph completely and clearly. Be sure that anyone reading this graph will know what each of the graph components means (i.e. use appropriate graph labels and titles).

2. Create and X,Y graph comparing the average cost per unit of making widget in-house and the average cost per unit of the widget if purchased from the supplier. Name and label the graph clearly and completely. Be sure that anyone reading this graph will know what each of the graph components means (i.e. use appropriate graph labels and titles). What is the indifference point between the two options? Explain what this means.

1. Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead.

2. Explain the difference between a product cost and a period cost. 

3. Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.

4.what effect does an increase in volume have on (a) unit fixed costs, (b) unit variable costs, (c) total fixed costs, and (d) total variable costs?

5. Define the following terms: (a) cost behavior and (b) relevant range.  

6. Distinguish between discretionary fixed costs and committed fixed costs.

7. Define the following terms: differential cost, opportunity cost, and sunk cost.

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Perpetual Inventory Using FIFO

Beginning inventory, purchases, and sales data for DVD players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.