2-a. Compute both the new average unit cost and the incremental unit cost for the special order.2-b. Should Winner's Circle, Inc. accept the special order?Complete this question by entering your answers in the tabs below.Req 2AReq 2BCompute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediatecalculations. Round your answers to 2 decimal places.)New average unit costIncremental unit costReq 24Req 2B > Che[The following information applies to the questions displayed below.]Winner's Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manufacturing plant hasthe capacity to produce 3,500 medals each month. Current monthly production is 2,625 medals. The company normallycharges $510 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are asfollows:Production CostsVariable costs:Manufacturing:Direct labor$ 525,000Direct material196,875MarketingTotal variable costsFixed costs:196,875$ 918,750ManufacturingMarketingTotal fixed costs$ 209, 250184,500$393,750Total costs$1,312,500$4350Variable cost per unitFixed cost per unit150$4500Average unit costWinner's Circle has just received a special one-time order for 875 medals at $305 per medal, For this particular order, novariable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has beenassigned the task of analyzing this order and recommending whether the company should accept or reject it. AfterOvamining the cnste Donato suc gested to her suinenvisor Cerard laPann who is the controllar that thau ranIIoct< Prev12 13of 14Next >14

In the manufacturing or service sectors, direct labor is labor that is assigned to a specific…

2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate calculations. Round your answers to 2 decimal places.) New average unit cost

2-a. Compute both the new average unit cost and the incremental unit cost for the special order. 2-b. Should Winner's Circle, Inc. accept the special order? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute both the new average unit cost and the incremental unit cost for the special order. (Do not round intermediate calculations. Round your answers to 2 decimal places.) New average unit cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
"Winner’s Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manu-facturing plant has the capacity to produce 10,000 medals each month. Current monthly production is 7,500 medals. The company normally charges $175 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows" "Variable costs: Manufacturing: Direct labor .........................................................................................$ 375,000 Direct material ....................................................................................262,500 Marketing ................................................................................................187,500 Total variable costs ......................................................................................$ 825,000 Fixed costs: Manufacturing…
Winner's Circle, Incorporated, manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 2,500 medals each month. Current monthly production is 1,875 medals. The company normally charges $515 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows: Variable costs: Manufacturing: Direct labor Direct material Marketing Production Costs Total variable costs. Fixed costs: Manufacturing Marketing Total fixed costs Total costs Variable cost per unit Fixed cost per unit. Average unit cost $ 262,500 196,875 140,625 $ 600,000 $ 207,150 130,350 $ 337,500 $ 937,500 $ 320 180 $ 500 Winner's Circle has just received a special one-time order for 625 medals at $290 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Donato, a management accountant with Winner's Circle, has been assigned the task of analyzing this order and recommending…
Winner’s Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manu-facturing plant has the capacity to produce 10,000 medals each month. Current monthly production is 7,500 medals. The company normally charges $175 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows" "Variable costs: Manufacturing: Direct labor .........................................................................................$ 375,000 Direct material ....................................................................................262,500 Marketing ................................................................................................187,500 Total variable costs ......................................................................................$ 825,000 Fixed costs: Manufacturing…
Winner’s Circle, Inc., manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month. Current monthly production is 7,500 medals. The company normally charges $175 per medal. Variable costs and fixed costs for the current activity level of 75 percent of capacity are as follows: Production Costs Variable costs: Manufacturing: Direct labor………………………………………………….$ 375,000 Direct material………………………………………………….262,500 Marketing……………………………………………………………….187,500 Total variable costs……………………………………………………………$ 825,000 Fixed costs: Manufacturing………………………………………………………..$ 275,000 Marketing……………………………………………………………….175,000 Total fixed costs……………………………………………………………...$ 450,000 Total costs……………………………………………………………………$1,275,000 Variable cost per unit………………………………………………………..$ 110 Fixed cost per unit…………………………………………………………………….60 Average unit cost……………………………………………………………$ 170 Winner’s Circle has just received a…
[The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 Required: 1. Compute the activity rate for each activity cost pool. (Round your answers to 2…
Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals each month; current monthly production is 7,640 medals. The company normally charges $260 per medal. Variable costs and fixed costs for the current activity level follow: Current Product Costs Variable costs Manufacturing Labor Material Marketing Total variable costs Fixed costs Manufacturing Marketing Total fixed costs Total costs $ 382,000 305,600 191,000 $ 878,600 $ 282,000 232,000 $ 514,000 $ 1,392,600 Award Plus has just received a special one-time order for 2,360 medals at $150 per medal. For this particular order, no variable marketing costs will be incurred. Cathy Senna, a management accountant with Award Plus, has been assigned the task of analyzing this order and recommending whether the company should accept or reject it. After examining the costs, Senna suggested to her supervisor, Gerard LePenn, who is the controller,…
Rundle Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials. Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rundle for $2.60 each. Required a. Calculate the total relevant cost. Should Rundle continue to make the containers? b. Rundle could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Rundle continue to make the containers? Answer is complete but not entirely correct. $ a. Total relevant cost a. Should Rundle continue to make the containers? b. Total avoidable cost b. Should Rundle continue to make the containers? 190.650,000 Yes $24,180,000 $ 5,200 6,100 4,000 7,800…
Anglen Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18,500 trophies each month; current monthly production is 15,000.00 trophies. The company normally charges $105.50 per trophy. Cost data for the current level of production are shown below: Variable costs: Direct materials $ 463,300 Direct labor $ 328,300 Selling and administrative $ 17,840 Fixed costs: Manufacturing $ 407,390 Selling and administrative $ 75,880 The company has just received a special one-time order for 925 trophies at $49.00 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost. Required: Should the company accept this special order? Why? Accepting the order has a financial ________ of _________. Therefore the company _______ accept the order.
Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: DirectLabor-Hoursper unit AnnualProduction Rims 0.40 18,000 units Posts 0.70 77,000 units Additional information about the company follows: Rims require $14 in direct materials per unit, and Posts require $11. The direct labor wage rate is $15 per hour. Rims are more complex to manufacture than Posts and they require special equipment. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Activity Measure EstimatedOverheadCost Rims Posts Total Machine setups Number of setups $ 30,030 120 80 200 Special processing Machine-hours $ 147,840 2,000 0 2,000 General factory Direct labor-hours $ 576,000 7,000 29,000 36,000 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 30,000 medals each month; current monthly production is 10,000 medals. The company normally charges $119 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $ 576,900 Direct labor $ 184,600 Selling and administrative $ 29,900 Fixed costs: Manufacturing $ 172,600 Selling and administrative $ 94,400 The company has just received a special one-time order for 500 medals at $108 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost. Required: Should the company accept this special order? multiple choice Accepted Not accepted