CoursHeroTranscribedText: In 2017, Commodity lnc., processor of whole grain our, had the capacity to produce 10,000,000 pounds of product at a conversion cost per pound of $0.00. The conversion cost per pound was $0.85 in 2016 (the previous year). The direct material cost per pound for both years was $0.00 per pound and in 201 i', Commodity Inc. produced 0,200,000 pounds while actual production for the previous year was 8,400,000 pounds. What was the cost of unused capacity in 201?? O A. $1,360,000 0 B. $1,440,000 0 0. $720,000 0 D. $000,000 Eolas' Heaters is approached by Ms. Leila, a new customer, to fulll a large one time only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials $500 Direct manufacturing labor 160 Variable manufacturing support To Fixed manufacturing support 210 Total manufacturing costs 940 Markup (10% of total manufacturing costs} 94 Estimated selling price $1,034 lst. Leila wanted a long term commitment, and not a one time special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same? 0 A. smo O 3. $940 0 c. $660 0 0. $1,034 Llack's Back Porch manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $2?0 per table, consisting of 90% variable costs and 10% xed costs. The company has surplus capacity available. It is Jack's Back Porch's policy to add a 75% markup to full costs. Alarge hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style, Jack's Back Porch is invited to submit a bid to the hotel chain. What per unit price will Jack's Back Porch most likely bid on this long term order? O A. $425.00 per unit O B. $47.00 per unit 0 c. $472.50 per unit 0 D. $202 50 per unit Sales of Granite City Products lnc. have been on a steady.' decline for the last 12 months. A market research study conducted revealed that the product of Granite Cit).f Products Inc. can be sold only for $430 as opposed to the current market price charged of $530 per unit. Granite City Products Inc. has decided to revise its sales price to $430. The annual sales target volume of the product after price revision is 200 units. Granite Cityr Products Inc. wants to earn 40% on its sales amount. What is the total target cost'? 0 A. $86,000 0 B. $34.400 O 0. $51,600 0 D. $120,400 fl'rusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity dened in terms of L800 units that can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018: 201 7 201 8 Units of L800 produced and sold 30,000 34,500 Selling price $400 $380 Direct materials (square feet) 91,000 80,000 Direct materials costs per square foot $31 $32 Manufacturing capacity for L800 {units} 37,500 36,000 Total conversion costs $450,000 $432,000 Conversion costs per unit of capacity $20 $20 What is the revenue effect of the growth component? O A. $423,150 F O B. $1,800,000 u 0 c. $423,150 U o o. $1,800,000 F