{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T05:41:14-04:00", "answer_date": "2024-06-28 05:41:14", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4247922", "url": "\/study-help\/questions\/bendix-ltd-is-a-car-parts-manufacturer-it-supplies-you-4247922", "question_creation_date_js": "2024-06-28T05:41:14-04:00", "question_creation_date": "Jun 28, 2024 05:41 AM", "meta_title": "[Solved] Bendix Ltd is a car parts manufacturer. I | SolutionInn", "meta_description": "Answer of - Bendix Ltd is a car parts manufacturer. It supplies you the following information regarding costs at various levels of | SolutionInn", "meta_keywords": "bendix,ltd,car,parts,manufacturer,supplies,information,costs,various,levels,monthly,production", "question_title_h1": "Bendix Ltd is a car parts manufacturer. It supplies you the following information regarding costs at various levels of monthly production: Production volume 8 000", "question_title": "Bendix Ltd is a car parts manufacturer. It supplies you the following", "question_title_for_js_snippet": "Bendix Ltd is a car parts manufacturer It supplies you the following information regarding costs at various levels of monthly production Production volume 8 000 units 12 000 units Direct materials $80 000 $120 000 Direct labour 64 000 96 000 Indirect materials 24 000 36 000 Supervisors' salaries 12 000 12 000 Depreciation on plant 10 000 10 000 Maintenance 32 000 44 000 Utilities 15 000 21 000 Insurance on plant and equipment 1 600 1 600 Property taxes on plant 2 000 2 000 Total $241 600 $342 600 In the above table there are some pure variable costs, some pure fixed costs and some mixed costs Required Identify and make separate lists of the pure variable costs, pure fixed costs and mixed costs and calculate their totals Split the total mixed costs into Fixed and Variable elements using High Low method, calculate total fixed cost and develop the equation for total monthly production costs Explain to the management how to use the cost equation you developed in (2) above to predict total costs for the monthly production volume of 9 000 units and also calculate the correct unit cost In 2019 the company has produced 9 000 units According to the Accountant's calculations the unit cost was $28 05 ($336 600 12 000) The company added 10 margin to the cost and had set a selling price of $30 85 However, the financial results show that there was a gross loss in the year The company management cannot understand this mystery Explain to the management why there was a loss ", "question_description": "

Bendix Ltd is a car parts manufacturer. It supplies you the following information regarding costs at various levels of monthly production:<\/p>

Production volume<\/strong><\/p>

8 000 units<\/strong><\/p>

12 000 units<\/strong><\/p>

Direct materials<\/p>

$80 000<\/p>

$120 000<\/p>

Direct labour<\/p>

64 000<\/p>

96 000<\/p>

Indirect materials<\/p>

24 000<\/p>

36 000<\/p>

Supervisors' salaries<\/p>

12 000<\/p>

12 000<\/p>

Depreciation on plant<\/p>

10 000<\/p>

10 000<\/p>

Maintenance<\/p>

32 000<\/p>

44 000<\/p>

Utilities<\/p>

15 000<\/p>

21 000<\/p>

Insurance on plant and equipment<\/p>

1 600<\/p>

1 600<\/p>

Property taxes on plant<\/p>

2 000<\/p>

2 000<\/p>

Total<\/p>

$241 600<\/p>

$342 600<\/p>

<\/p>

In the above table there are some pure variable costs, some pure fixed costs and some mixed costs.<\/p>

Required:<\/strong><\/p>

  1. Identify and make separate lists of the pure variable costs, pure fixed costs and mixed costs and calculate their totals.<\/li>
  2. Split the total mixed costs into Fixed and Variable elements using High\/Low method, calculate total fixed cost and develop the equation for total monthly production costs?<\/li>
  3. Explain to the management how to use the cost equation you developed in (2) above to predict total costs for the monthly production volume of 9 000 units and also calculate the correct unit cost.<\/li>
  4. In 2019 the company has produced 9 000 units. According to the Accountant's calculations the unit cost was $28.05 ($336 600 \/ 12 000). The company added 10% margin to the cost and had set a selling price of $30.85.<\/li> <\/ol>

    However, the financial results show that there was a gross loss in the year. The company management cannot understand this mystery.<\/p>

    Explain to the management why there was a loss.<\/p>", "transcribed_text": "", "related_book": { "title": "Entrepreneurial Finance", "isbn": "1305968352, 978-1337635653, 978-1305968356", "edition": "6th edition", "authors": "J. Chris Leach, Ronald W. Melicher", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1482.jpg", "uri": "\/textbooks\/entrepreneurial-finance-6th-edition-1482", "see_more_uri": "" }, "free_related_book": { "isbn": "1511988207", "uri": "\/textbooks\/60-worksheets-find-successor-of-4-digit-numbers-math-practice-workbook-workbook-edition-978-1511988209-271535", "name": "60 Worksheets Find Successor Of 4 Digit Numbers Math Practice Workbook", "edition": "Workbook Edition" }, "question_posted": "2024-06-28 05:41:14", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/how-does-the-net-position-section-of-a-balance-sheet", "description": "How does the net position section of a balance sheet of a proprietary fund differ from the fund balance section of a governmental- type fund?", "stars": 3 }, { "url": "\/study-help\/psychology\/3-what-are-some-witness-factors-that-have-been-associated-1982465", "description": "3. 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Note: Do not put the $ sign and only use two decimal...", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/saguaro-home-health-unadjusted-trial-balance-december-31-20xx-debit-4247921", "next": "\/study-help\/questions\/5-dmc3-inc-will-pay-no-dividend-for-2016-or-4247923" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "Bendix Ltd is a car parts manufacturer. It supplies you the following", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/bendix-ltd-is-a-car-parts-manufacturer-it-supplies-you-4247922" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }1" } }