BC makes stainless steel kitchen materials, and uses an activity-based costing system to account for the indirect manufacturing costs of its various products. Indirect costs for the whole factory are broken down into three activities: casting, materials handling, and milling. The cost driver for casting is machine hours; the cost driver for material handling is kilograms, and the cost driver for milling is direct labor hours. Activity costs and volumes for the year were estimated as follows: Activity Cost Volume / Cost Driver Casting $2,296,000 820,000 Machine hours Material Handling $612,000 510,000 Kilograms Milling $1,911,000 210,000 Direct labor hours One product is Rack A, sold by the metric ton. Engineering reports show that one metric ton of Rack A requires $130 of direct materials cost plus $80 of direct labor cost. Producing one metric ton of Rack A also requires 38 machine hours for casting, weighs 1,700 kilograms, and requires 23 direct labor hours. What is the cost of 3 metric tons of Rack A?

TRI company makes and sells handmade violins. Each violin sells for $1,398, and the fixed monthly operating costs are as follows: Rent and utilities $2,840 Wages and salaries $50,000 Miscellaneous expenses $9,000 A thorough analysis of the company's financials, the financial manager realized that for every dollar of sales, $0.60 went to cover the fixed costs. TRI's directors want to make $32,500 of Net profit each month. How many violins should the company sell to reach this target? (note that the Tax rate is 35%)

Hall Products manufactures packs of grains which are sold to farmers. Cost, volume and price data are as follows: Price per unit $40.00 Variable cost per unit $32.00 Fixed cost per month $13,000 Current sales volume 5,000 units If Hall wishes to increase their current operating income by 13%, what level of sales (in $) is needed?

Anthony sells hats. Each hat sells for $12. He pays $80 to rent a vendor booth for one day. His variable costs are $7 per hat. What total revenue amount does he need to earn to break even in a whole week?Single line text.

High Sky Company manufactures 20 small planes per month. Included in each plane is a Locator system manufactured in-house with the possibility of outsourcing. At present, the variable cost per unit is $1250, and the fixed costs are $76,000 per month. The CEO wishes to boost operational income by $9,000. He has an offer from a foreign producer to provide the media centers at a contract rate of $2100 per unit. In order to achieve his objective, how much fixed costs would he have to cut?Single line text.

Navy Go makes yachts instruments. Their basic navigation system requires $800 in variable costs and requires $9,000 per month in fixed costs. If they process the system further to enhance its functionality, it will require an additional $500 per unit of variable costs, plus an increase in fixed costs of $2100 per month. The marketing manager believes they would be able to boost their price of the radio from $2800 to $3300. Currently Navy sells 20 systems per month which may decrease by 10% after the improvement and the price change. If they decide to process further, what would the impact be on monthly operational income? (hint for answer: use + for increase and - for decrease before the number)Single line text.

A company produces 3000 coffee machines per month, each of which includes one electrical circuit. The company currently manufactures the circuit in-house but is considering outsourcing the circuits at a contract price of $41 each. Currently, the cost of producing circuits in-house includes variable costs of $32 per circuit and fixed costs of $75,000 per month. Assume the company could eliminate half of the fixed costs by outsourcing, and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, how will it affect monthly operating income? (hint for answer: use + for increase and - for decrease before the number)Single line text.