Excluding selling and administration costs, what is the cost to produce one iWatch-Standard? Group of answer
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Timeless Company will manufacture the iSports Watches (64-GB only) and the Standard (128-GB) iWatches for Pear Computer. The critical part of the manufacturing process uses a single machine that produces the color displays on both types of watches. The planned annual financials for each product are presented in the table below: (All financial data in 000's) Sales Materials Direct Labor Variable Overhead Expenses ($26,000 in total) Fixed Overhead Expenses ($35,000 in total) Selling and Admin Expenses (all fixed) Units to be Produced (000's) Units to be Sold (000's) iSports Watch Watch-Standard $44,000 $75,600 $12,000 $25,000 $6,000 $10,000 ? ? ? ? $1,000 $500 250 300 200 280 Some additional data related to overheads are presented below: Activity Costs $ (000's) Setup Production Line 18,000 Repair Machines 8,000 Batch Assembly of Components 35,000 Units of the Cost Driver Base Available Cost Drivers Total iSports Watch iWatch-Standard Number of Production Runs 1,250 900 350 Number of Setup Hours 7,500 5,000 2,500 Number of Machine Hours 36,000 24,000 12,000 Timeless Company will manufacture the iSports Watches (64-GB only) and the Standard (128-GB) iWatches for Pear Computer. The critical part of the manufacturing process uses a single machine that produces the color displays on both types of watches. The planned annual financials for each product are presented in the table below: (All financial data in 000's) Sales Materials Direct Labor Variable Overhead Expenses ($26,000 in total) Fixed Overhead Expenses ($35,000 in total) Selling and Admin Expenses (all fixed) Units to be Produced (000's) Units to be Sold (000's) iSports Watch Watch-Standard $44,000 $75,600 $12,000 $25,000 $6,000 $10,000 ? ? ? ? $1,000 $500 250 300 200 280 Some additional data related to overheads are presented below: Activity Costs $ (000's) Setup Production Line 18,000 Repair Machines 8,000 Batch Assembly of Components 35,000 Units of the Cost Driver Base Available Cost Drivers Total iSports Watch iWatch-Standard Number of Production Runs 1,250 900 350 Number of Setup Hours 7,500 5,000 2,500 Number of Machine Hours 36,000 24,000 12,000
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Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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