Determine the target cost per unit of the toy. Calculate the cost gap per unit of the toy.
Q: Blue Company sold a car to a customer at a price of P400,000 with a production cost of P300,000 on…
A:
Q: Cost of goods manufactured Selling expenses Administrative expenses Sales Finished goods inventory,…
A: Cost of goods sold :- Cost of goods sold refers to the total expenses that are incurred by an…
Q: Determine the flexible budget amount for equipment depreciation in September?
A: In budgeting we make master budgets which essentially are planned budgets. These budgets are…
Q: A firm can purchase a centrifugal separator (5-year MACRS property) for $22,000. The estimated…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: Morgan Industries is comparing and contrasting its ending inventory value in terms of the three…
A: Three most common method of inventory valuation are Fifo method Lifo method Weighted average…
Q: have a follow-up question. For parts a, b, and c are each of the calculations favorable or…
A: Variance which generates high revenue or low expenses are favourable variance. And variance which…
Q: Required information [The following information applies to the questions displayed below.] Ramirez…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: ABC Company listed the following data for the current year: Budgeted factory overhead…
A: As per the given information: Computation of Predetermined overhead rate based on direct labor…
Q: Financial Accounting Project: 1. The owner, Josef Miguel, invested Php250,000 cash in the business.…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Please help me answer the last 2 qui=estions, all in bold. Thank you! Saxon, Inc. Absorption…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: In valuation for purposes of determining gross estate, which is FALSE? Valuation 1.Land Higher…
A: The proper valuation of assets is very important in determining gross estate of the person if no…
Q: Eddy Co. is indebted to Cole under a P400,000, 12%, three-year note dated December 31, 2019. Because…
A: Indebted Amount: P400,000 Accrued Interest: P48,000 Fair Value of land: P360,000 Acquisition cost of…
Q: Create a spreadsheet with an output section that: calculates the ending balance of Work-in-Process…
A: a . Schedule of cost of goods manufactured Estimated total manufacturing overhead ( a )…
Q: NXP Corporation issues P15 par value ordinary shares during 2021. The company received subscription…
A: According to the given question, we are required to compute how much cash was collected from the…
Q: Discuss any two features of digicash that fulfill the requirements of the electronic payment system.
A: Electronic payment system is the system which has been established within the system of the money…
Q: Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for…
A: Accounting Equation represent the Total Assets = Total Liabilities + Capital. When the transactions…
Q: What is the full cost per room-night? Can Hotel+ meet the targeted return on investment based on the…
A: Full Cost :— It is total cost incurred for providing services or producing finished product.…
Q: Empathy State Bank Assets Vault Cash Deposits at the Federal Reserve Loans Reference: Ref 12-1 This…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first question for you. If…
Q: On December 31, 2023, Sandy Company has a Note Receivable of $6,000. The note will be collected in…
A: Current asset can be converted into cash within 12 months whereas long term assets has a life of…
Q: the shares issued for cash the year would be _____shares.
A: Legal capital refers to the amount of the corporation's equity that cannot be legally allowed to…
Q: On July 1, 2021, Spear Co. issued 1,000 of its 10%, P1,000 bonds at 99 plus accrued interest. The…
A: Amount received from the issuance of the bonds is calculated by adding the accrued interest on the…
Q: Bellingham Company produced 2,300 units that require 16 standard pounds per unit at a $10 standard…
A: Variance is the result the amount of expected value and actual results. It can be calculated by…
Q: Pina Colada Corp. has income from continuing operations of $413,000 for the year ended December 31,…
A: Net income is a company's revenue that includes all of the revenues received and expenses incurred…
Q: The balance in Accounts Receivable at the beginning of the year was $520,000. The balance in…
A: Credit sales is a term in which the goods is transferred to the customer on a credit basis. In which…
Q: Average order: $ 535 Frequency of orders: 1.6 /year Average margin: 60 % markup on retail Customer…
A: Retention rate is a measurement rate. It measures the number of customers and users receiving…
Q: Thad, a single taxpayer, has taxable income before the QBI deduction of $176,000. Thad, a CPA,…
A: The qualified income means the total of all qualified items. The qualified income of the business…
Q: DEF Corporation currently have Ordinary Share Capital, P 20 par, 50,000 shares and replace it by…
A: Ordinary shares are one of the important source of finance for the business. When shares are issued…
Q: What is the sunk cost if the depreciation method is a straight-line method?
A: Sunk cost costs are those costs or expenses that already been spent and cannot be recovered.…
Q: Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During…
A: Journal Entry :- A journal entry is the act of recording any transaction, whether one that is…
Q: What amount of interest should be capitalized for the fiscal year ending December 31, 2020,…
A: Interest Capitalization According to IAS 23 which specifies the details of the calculation of…
Q: ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The company has the…
A: Earnings per share is one of the important calculation in business. It shows how much net income or…
Q: designation s to whether the equity investment is at FVPL or OCI depends upon whether the securities…
A: There are many methods of the valuations and based on the valuation there are classifications of…
Q: Required information [The following information applies to the questions displayed below.] Ramirez…
A: Depreciation is calculated to capture the wear and tear of the assets for the purpose of generating…
Q: The total manufacturing cost variance is a.the flexible budget variance plus the time variance b.the…
A: Variance means difference between standard cost of producing goods and actual cost of producing same…
Q: Choose all that are appropriate 1. 2. 3. A firm whose ROE is 5% and cost of capital is 10% is…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: The transaction price: A) Is always the price that competitors see. B) May include a trade…
A: Price: It implies to an estimated amount of money that acts as consideration in sale or purchase of…
Q: Using the following information, prepare a bank reconciliation. Bank balance: $6,626 Deposits in…
A: Lets understand the basics. Bank reconciliation statement is a statement prepare to tally the…
Q: ABC Corporation has P10 par, 5,000,000 shares outstanding as of October 31, 2022. On November 15,…
A: The dividend is declared to the shareholders from the cumulative profits of the business. The share…
Q: Contribution margin Waite Company sells 250,000 units at $120 per unit. Variable costs are $78 per…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: High-low method-missing amounts The following data have been ekracted from the records of Puzzle Inc…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: The flexible budget performance report is prepared to evaluate the difference between actual…
Q: The J3 Corp has the following classes of share capital outstanding as of Dec 31, 2021. Ordinary…
A: The preference share are paid dividend each year but some time if not paid than non cumulative are…
Q: Fogel Company expects to produce and sell 110,000 units for the period. The company's flexible…
A: Variable overheads are those which changes with the variation in the activity or level of…
Q: Stock-X is evaluating two mutually exclusive projects. Project A has a net investment of $48,000 and…
A: Net present value is difference between present value of cash inflows and present value of cash…
Q: How much cash will be distributed to the partners?
A: Cash Distribution Between Partners :— If the partnership decides to liquidate, the assets of the…
Q: On October 1, 2021, Best Company purchased as debt investments at fair value through profit or loss,…
A: Accrued interest is one of the current asset being held by the business. This means interest revenue…
Q: In a government’s comprehensive annual financial report, proprietary fund types are included in…
A: Dear student, Since you have asked multiple questions we will answer only first question as per…
Q: Bokia, Inc. manufactures cell phone. It has two departments: Assembly Department and Testing…
A:
Q: The employees of Lillian's Interiors are paid on a semimonthly basis. All employees are single.…
A: In the given case YTD Pay till 12/15/2021 is required which is 23 semi-monthly payments i.e (…
Q: Use the future value formula to find the indicated value. FV = $3785; n = 27; i = 0.08; PMT= ? PMT=$…
A: PMT is equal amount of payment or receipt for each period. future value = PMT[ (1+i) n - 1]÷i
Avenger Toy Shop produces and sells children’s toys such as puzzles and tents which help the development of young minds. The shop plan to produce and sell a new toy, Knitted Baby Rattle for their new target customers. The estimated production costs are as follows:
- Two types of materials are required to produce a new toy, Direct and Indirect Materials. Costs of Direct Materials is RM3 per meter while Indirect Materials cost RM4 per meter. Each unit toy uses two (2) meters of Direct Materials and four (4) meters of Indirect Materials.
- The Labour cost per unit is RM12.
Overhead costs are RM10 per unit.
Based on a market survey, competitors sell this product at a selling price of RM50. The new toy’s target return on sales is 20%.
- Determine the target cost per unit of the toy.
- Calculate the cost gap per unit of the toy.
Step by step
Solved in 3 steps
- Quality Clothing, Inc., produces skorts and jumper uniforms for schoolchildren. In the process of cutting out the cloth pieces for each product, a certain amount of scrap cloth is produced. Quality has been selling this cloth scrap to Jorges Scrap Warehouse for $3.25 per pound. Last year, the company sold 40,000 lb. of scrap, which would be enough to make 10,000 teddy bears that the management of Quality is now interested in producing. Their processes would need some reprogramming, particularly in the cutting and stitching processes, but it would require no additional worker training. However, new packaging would be needed. The total variable cost to produce the teddy bears $3.85. Fixed costs would increase by $95,000 per year for the lease of the packaging equipment and Quality estimates it could produce and sell 10,000 teddy bears per year. Finished teddy bears could be sold for $18.00 each. Should Quality continue to sell the scrap cloth or should Quality process the scrap into teddy bears to sell?Kelson Sporting Equipment, Inc., makes two types of baseball gloves: a regular model and a catchers model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, answer the following: a. What is the linear programming model for this problem? b. Develop a spreadsheet model and find the optimal solution using Excel Solver. How many of each model should Kelson manufacture? c. What is the total profit contribution Kelson can earn with the optimal production quantities? d. How many hours of production time will be scheduled in each department? e. What is the slack time in each department?Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste container is the same. The number of waste containers that Jonfran will need during the following years is estimated as follows: The equipment used to manufacture the waste container must be replaced because it is broken and cannot be repaired. The new equipment would have a purchase price of 945,000 with terms of 2/10, n/30; the companys policy is to take all purchase discounts. The freight on the equipment would be 11,000, and installation costs would total 22,900. The equipment would be purchased in December 20x4 and placed into service on January 1, 20x5. It would have a five-year economic life and would be treated as three-year property under MACRS. This equipment is expected to have a salvage value of 12,000 at the end of its economic life in 20x9. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in both direct materials and variable overhead. The savings in direct materials would result in an additional one-time decrease in working capital requirements of 2,500, resulting from a reduction in direct material inventories. This working capital reduction would be recognized at the time of equipment acquisition. The old equipment is fully depreciated and is not included in the fixed overhead. The old equipment from the plant can be sold for a salvage amount of 1,500. Rather than replace the equipment, one of Jonfrans production managers has suggested that the waste containers be purchased. One supplier has quoted a price of 27 per container. This price is 8 less than Jonfrans current manufacturing cost, which is as follows: Jonfran uses a plantwide fixed overhead rate in its operations. If the waste containers are purchased outside, the salary and benefits of one supervisor, included in fixed overhead at 45,000, would be eliminated. There would be no other changes in the other cash and noncash items included in fixed overhead except depreciation on the new equipment. Jonfran is subject to a 40 percent tax rate. Management assumes that all cash flows occur at the end of the year and uses a 12 percent after-tax discount rate. Required: 1. Prepare a schedule of cash flows for the make alternative. Calculate the NPV of the make alternative. 2. Prepare a schedule of cash flows for the buy alternative. Calculate the NPV of the buy alternative. 3. Which should Jonfran domake or buy the containers? What qualitative factors should be considered? (CMA adapted)
- Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $15 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $6 and the labor cost would be $4 per set and that it would have to purchase cutting and sewing equipment, which would add $10,000 to annual fixed costs. Calculate Amount company will save if company make 10,000 cushions What amount should have been inccrued if company purchase the units what amount should have been inccrued if company produce the unitsAssume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushionsBuck Products, located in Charleston, South Carolina,produces two lines of electric toothbrushes: Deluxe and Standard. Because Buck can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: Per Unit Deluxe Toothbrush Standard Toothbrush Sales price. . . . . . . . . . . . . . . . . . Deluxe $92 Standard $44 Variable expenses. . . . . . . . . . . . Deluxe 22 Standard 15 Contribution margin. . . . . . . . . . Deluxe $70 Standard $29 Contribution margin ratio. . . . . . Deluxe 76.1% Standard 65.9% After expansion, the factory will have a production capacity of 4,800 machine hours per month. The plant can manufacture either 56 Standard electric toothbrushes or 27 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Buck Products. 2. Prepare an analysis to show which product line to emphasize.…
- XYZ makes an electric skateboard-like scooter that is small enough to fit into a school locker. Production for the year 2014 is budgeted at 20,000 scooters. Currently, XYZ makes all of the parts for manufacturing the scooter. However, an outside source has offered to make and sell XYZ 20,000 steering columns for P90 each. The controller of XYZ has researched the cost to produce the steering column in house and has found the following cost structure: Variable costs: Direct materials P48 Direct labor 23 Overhead 16 Total variable cost per unit P87 Fixed costs of P40,000 represents depreciation on special equipment designed to make the steering columns. The equipment cannot be used for any other purpose. The supervisory salary of P70,000 is for the supervisor of the assembly line where the steering columns are made. The supervisor is not involved with the manufacture of any other parts. Therefore, his salary can be eliminated if the…Fragrant Company produces young adult perfumes needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Timmee, for sale in its college town shops or to purchase them from an outside supplier for RM25 each. Cost information on internal production includes the following: Production Costs Total Cost Unit CostDirect materials 2,000,000 20.00Direct labor 350,000 3.50Variable manufacturing overhead 150,000 1.50Variable marketing overhead 250,000 2.50Fixed plant overhead 300,000 3.00Total 3,050,000 30.50 Fixed overhead will continue whether Timmee is produced internally or externally. No additional costs of purchasing will be…FAE Technologies is deciding whether it should begin production of a new toy robot. It has manufactured children’s toys before but nothing as advanced as its latest robot so historical data is at a minimum. The company believes that they can secure the materials for manufacture for between $65-85 per unit and labor costs would be between $15-25 per unit. Management’s expectations are that materials will cost $70 per unit and labor $25 per unit and that 800 units will be sold monthly. Should FAE decide to manufacture the robots in-house, maintenance of the factory machine would cost $15,000 per month. However, management has found that another alternative is for the company to outsource the labor for a flat rate of $35 per unit. The company expects to sell between 750-1000 units per month initially at a price of $149. Provide recommendations for FAE technologies that will maximize profit. Also include base, worst, and best case scenario calculations and provide a scenario summary. Be…
- Carol’s Cupcakes sells cupcakes and other desserts through its retail store. The company has always made all of its ingredients from scratch, but has recently been approached by a supplier that specializes in icing. Carol believes that the supplier’s icing is of equal quality to her own, and believes their offer of $3.00 per liter may enable her to save money. Carol is evaluating her own cost of producing icing: Per Liter 5,000 liters per year Direct materials $1.00 $5,000 Direct labour 0.50 2,500 Variable manufacturing overhead 0.25 1,250 Fixed manufacturing overhead – traceable* 1.00 5,000 Fixed manufacturing overhead - allocated 1.75 8,750 Total $4.50 $22,500 *40% relates to cleaning and maintenance of the icing equipment and 60% relates to depreciation of icing equipment (with no resale value) Examining the report, Carol says, “Their icing is just as good, and it would save me $1.50 per…Baby Doll Shop currently manufactures wooden parts for dollhouses. Itssole worker is paid $8.10 an hour and, using a handsaw, can produce a year's required production (1,600 parts) in just eight weeks of 40 hours per week. That is, the worker averages five parts per hour when working by hand. The shop is considering the purchase of a power band saw with associated fixtures in order to improve the productivity of this operation. Three models of power saw could be purchased: Model A (economy version), Model B (high-powered version), and Model C (deluxe high-end version). The major operating difference between these models is their speed of operation. The investment costs, including the required fixtures and other operating characteristics, are summarized as follows: Assume that MARR = 10%. Are there enough potential savings to make iteconomical to purchase any of the power band saws? Which model is most economical according to the rate-of-return principle? (Assume that any effect of…A furniture company manufactures desks and chairs. Each desk requires 29 hours to manufacture and contributes $400 to profit, and each chair requires 19 hours to manufacture and contributes $250 to profit. Due to marketing restrictions, a total of 2000 hours are available. Use Solver to maximize the company’s profit. What is the maximum profit? How many desks and chairs should the company manufacture? Of the 2000 available hours, how many hours will be used?
