Leslie Sporting Goods is a locally owned store that specializes
in printing team jerseys. The majority of its business comes from
orders for various local teams and organizations. While Leslie’s
prints everything from bowling team jerseys to fraternity/sorority
apparel to special event shirts, summer league baseball and
softball team jerseys are the company’s biggest source of
revenue.
A portion of Leslie’s operating information for the company’s last
year follows:
| Month | Number of Jerseys Printed | Operating Cost |
| January | 150 | $4,880 |
| February | 195 | 5,865 |
| March | 175 | 5,765 |
| April | 525 | 8,595 |
| May | 655 | 9,230 |
| June | 720 | 9,725 |
| July | 420 | 6,225 |
| August | 295 | 6,010 |
| September | 355 | 6,125 |
| October | 255 | 5,975 |
| November | 250 | 5,935 |
| December | 165 | 4,925 |
Required:
3. Using the high-low method, calculate the store’s total
fixed operating costs and variable operating cost per jersey.
(Do not round your intermediate calculations. Round your
"Variable Cost" answer to 2 decimal places and "Fixed Cost" answer
to the nearest whole number.)
| Variable Cost per Jersey | |
| Fixed Cost |
4. Using the high-low method results, calculate
the store’s expected operating cost if it printed 475 jerseys.
(Do not round your intermediate calculations. Round your
answer to the nearest whole number.)
Total Cost:____________
5. Perform a least-squares regression analysis on
Leslie’s data. (Use Microsoft Excel or a statistical
package to find the coefficients using least-squares regression.
Round your answers to 2 decimal places.)
| Coefficients | |
| Intercept | |
| X Variable |
6. Using the regression output, create a linear
equation (y = a + bx) for estimating Leslie’s operating costs.
(Round your answers to 2 decimal places.)
Total cost =__________+__________(Number of Jerseys)
7. Using the least-squares regression results,
calculate the store’s expected operating cost if it prints 650
jerseys. (Round your intermediate
calculations to 2 decimal places. Round your final answer
to 2 decimal places.)
Total Cost:=______________
In: Accounting
Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 model. Data regarding the two products follow:
| Product | Direct Labor-Hours | Annual Production |
Total Direct Labor-Hours |
| X200 | 0.2 DLHs per unit | 15,000 units | 3,000 DLHs |
| X99 | 0.4 DLHs per unit | 46,000 units | 18,400 DLHs |
| 21,400 DLHs | |||
Additional information about the company follows:
a. Model X200 requires $44 in direct materials per unit, and model X99 requires $22.
b. The direct labor workers are paid $30 per hour.
c. The company has always used direct labor-hours as the base for applying manufacturing overhead cost to products.
d. Model X200 is more complex to manufacture than model X99 and requires the use of special equipment.
e. Because of the special work required in (d) above, the company is considering the use of activity-based absorption costing to apply manufacturing overhead cost to products. Three activity cost pools have been identified as follows:
| Estimated Total Activity | ||||||
| Activity Cost Pool | Activity Measure | Estimated Total Cost |
X200 | X99 | Total | |
| Machine setups | Number of setups | $ | 149,100 | 84 | 126 | 210 |
| Special processing | Machine-hours | 328,600 | 1,060 | 0 | 1,060 | |
| General factory | Direct labor-hours | 428,000 | 3,000 | 18,400 | 21,400 | |
| $ | 905,700 | |||||
Required:
1. Assume that the company continues to use direct labor-hours as the base for applying overhead cost to products.
a. Compute the plantwide predetermined overhead rate.
b. Compute the unit product cost of each model.
2. Assume that the company decides to use activity-based absorption costing to apply overhead cost to products.
a. Compute the activity rate for each activity cost pool and determine the amount of overhead cost that would be applied to each model using the activity-based approach.
b. Compute the unit product cost of each model.
In: Accounting
1. The daily production data of a firm are given below. The wage rate is MYR 20 per day for each labor (variable input) and it is the only variable cost incurred. Additionally, output refers to the total products and it is in hundreds of units.
|
Labor |
Output |
AP |
MP |
TVC |
TC |
MC |
AFC |
AVC |
ATC |
|
0 |
0 |
- |
- |
20x0=0 |
40 |
- |
- |
- |
- |
|
1 |
18 |
18 |
18/1=18 |
20x1=20 |
20x18=1.11 |
20x18=1.11 |
20x18=1.11 |
20x18=1.11 |
20x18=1.11 |
|
2 |
37 |
37/2= 18.5 |
19/1= 19 |
20x2= 40 |
20/19= 1.05 |
20/19= 1.05 |
20/37= 0.54 |
20/19= 1.05 |
20/37= 0.54 |
|
3 |
57 |
57/3= 28.5 |
20/1= 20 |
20x3= 60 |
20/20=1 |
20/20=1 |
20/57= 0.35 |
20/20=1 |
20/57= 0.35 |
|
4 |
76 |
76/4= 19 |
19/1= 19 |
20x4= 80 |
20/19= 1.05 |
20/19= 1.05 |
20/76= 0.26 |
20/19= 1.05 |
20/76= 0.26 |
|
5 |
94 |
18.8 |
18/1= 18 |
20x5= 100 |
20/18= 1.11 |
20/18= 1.11 |
20/94= 0.21 |
20/18= 1.11 |
20/94= 0.21 |
|
6 |
111 |
111/6= 18.5 |
17/1= 17 |
20x6= 120 |
20/17= 1.18 |
20/17= 1.18 |
20/11= 0.18 |
20/17= 1.18 |
20/11= 0.18 |
|
7 |
127 |
127/7= 18.14 |
16/1 = 16 |
20x7= 140 |
20/16= 1.25 |
20/16= 1.25 |
20/127= 0.16 |
20/16= 1.25 |
20/127= 0.16 |
a. Complete these production data. Calculate the average and marginal product per labor, the total variable cost, total cost, marginal cost, average fixed cost, average variable cost and average total cost for each level. Show your calculations.
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
…………………………………………………………………………………………………..
b. Based on your answer above, evaluate the patterns and relationship between:
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
[Total: 25 marks]
In: Economics
Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed:
|
Number of units in the job |
40 |
|
Total direct labor-hours |
80 |
|
Direct materials |
$ 950 |
|
Direct labor cost |
$ 2,720 |
The unit product cost for Job T498 is closest to:
In: Computer Science
1)The total profit P(x) (in thousands of dollars) from a sale of x thousand units of a new product is given by
P(x)= ln (-x3+9x2+48x+1) (0≤x≤10).
a) Find the number of units that should be sold in order to maximize the total profit.
b) What is the maximum profit?
2)Suppose that the cost function for a product is given by C(x)=0.003x3+9x+9,610.
Find the production level (i.e., value of x) that will produce the minimum average cost per unit C(x).
a)The production level that produces the minimum average cost per unit is
x=__
In: Math
On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 25,000 units were started. At the end of the month all started units were 50% complete with respect to conversion. Direct Materials placed into production had a total cost of $330,000 and the total conversion cost for the month was $428,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. (Round answer to the nearest cent.)
In: Accounting
On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 24,000 units were started. At the end of the month all started units were 50% complete with respect to conversion. Direct Materials placed into production had a total cost of $420,000 and the total conversion cost for the month was $438,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.)
In: Accounting
Shum Manufacturing, which uses the high-low method, makes a
product called Kwan. The company incurs three different cost types
(A, B, and C) and has a relevant range of operation between 2,500
units and 7,000 units per month. Per-unit costs at two different
activity levels for each cost type are presented below.
| Type A | Type B | Type C | Total | |||||||||||||||
| 5,000 | units | $ | 23 | $ | 66 | $ | 23 | $ | 112 | |||||||||
| 7,500 | units | 23 | 44 | 22 | 89 | |||||||||||||
If Shum produces 7,000 units, the total cost would be:
Please show you calculated answer
In: Accounting
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $20,000 and fixed selling and administrative expense is $29,500.
| Required: | |
| 1. | Calculate the variable cost ratio. |
| 2. | Calculate the contribution margin ratio. |
| 3. | Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin. |
In: Accounting
On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 24,000 units were started. At the end of the month all started units were 55% complete with respect to conversion. Direct Materials placed into production had a total cost of $390,000 and the total conversion cost for the month was $498,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March. (Round answer to the nearest cent.)
In: Accounting