Because the purchase price has increased significantly, XYZ management has asked that an estimate be made of the cost to manufacture it in its own facilities.

Uncategorized

Anonymous

1-

The XYZ Company has purchased from ABC, Inc.

80,000

circuit boards annually.

The price has increased each year, reaching

$68

per unit last year.

Because the purchase price has increased significantly, XYZ management has asked that an estimate be made of the cost to manufacture it in its own facilities.

The company has little experience with products requiring assembly. The engineering, manufacturing, and accounting departments have prepared a report for management which included the following estimates:

An assembly run of

10,000

units.

Additional production employees would be hired to manufacture the subassembly. However, no additional equipment, space, or supervision would be needed.

The report states that total costs (1) for

10,000

units

are estimated at

$957,000

The current purchase price is $68 a unit, so the report recommends a continued purchase of the product.

Components (outside purchases)

$120,000

Assembly labor (2)

300,000

Manufacturing overhead (3)

450,000

General and administrative overhead (4)

87,000

Total costs

$957,000

(1) The cost is estimated in a relevant range of 100,000 units.

(2) Assembly labor consists of hourly production workers.

(3) Manufacturing overhead is applied to products on a direct labor dollar basis.

Variable overhead costs vary closely with direct labor dollars.

Fixed overhead

50%

of direct labor dollars

Variable overhead

100%

of direct labor dollars

Manufacturing overhead rate

150%

of direct labor dollars

(4) General and administrative overhead is applied at

10%

of the total manufacturing costs

The production cost for each circuit board produced with no learning is .

The production cost for each circuit board produced with the	80%	cumulative average learning curve is .
Round your answers only to the nearest dollar with no $ sign or period.

2-

Consider the following:

Product

Sales Price

Variable Production Cost

Allocated fixed manufacturing overhead

X

$40

12

36363.64

Y

$60

30

21818.18

Z

$92

55

21818.18

The sales ratio for X:Y:Z is

10:6:6

Total current sales (units)

16000

Additionally, average cost data for two levels of sales volume are as follows:

Sales Volume (units)

10,000

30000

Administration Expense (per unit)

$18

6

Sales & Marketing (per unit)

$12

12

Other Operating Expense

$2.40

1.8

X company is subject to a 40% income tax rate.

X company’s current margin of safety is

How many units of Product Y does ABC need to sell to earn a after-tax income of

$48,000
Round your answers only to the nearest dollar and units with no $ sign, comma and period.

3-

X Corporation, which uses a normal job costing system and dispose the over/under applied manufacturing overhead using write-off method, had two jobs in process at the start of 20×2:
Job No. 59, WIP Balance	$66,500
Job No. 60, WIP Balance	$139,500
X applies manufacturing overhead on the basis of machine hours.
At the beginning of the 20×2, X corporation estimated its manufacturing overhead
during the first quarter would total	$212,500
and its budgeted machine hours would total	6250
Manufacturing overhead incurred during the first quarter of 20×2 included following charges:
Depreciation	$20,000
Indirect labor	50000
Indirect materials used	4000
Other factory costs	128700

The company worked on three jobs during the first quarter.
Costs added during the first quarter were as follows:
Job No.	Direct Material	Direct Labor	Machine Hours
59	$18,000	$45,000	1500
60	0	25,000	1000
61	37,000	35,000	?
The manufacturing overhead account showed that overhead was overapplied by	$14,900
Job no. 59 and 60 were completed during the quarter, and X sold job no. 59 for	$218,000.00

Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345
How many machine hours were used by Job no. 61?

What was the gross margin of Job no. 59 after the adjustment of overapplied manufacturing overhead?

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool’s honor code & terms of service.

auto-match is active

This question is set to Auto Match. If you place a bid that matches the Time and Price; you will be assigned to this question within 10 min.

Prioritised Tutors

Your Statistics

100%

5

1

15%

Calculator

Delivery Time

A 15% commission rate will be deducted upon completing this question. Learn More

Finalize Bid

If chosen to answer this question, I commit to resolve it within the proposed timeframe. I also attest that I am qualified to answer this question and possess the knowledge, education or qualities requested by the student.

Bids (3)


TeacherSethGreg University Of Chicago (8355)	35/812 (95.69%) 66/1425 (95.37%)	$40.00	3 days	2302	61	15
iammulwa University of Miami & Providence College (2514)	3/79 (96.2%) 8/42 (80.95%)	$60.00	1 day	136	10	0	N/A
Jferguson Caribbean Maritime Univeristy (33)	0/2 (100%) 1/2 (50%)	$40.00	3 days	2	1	0