Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hlep plz Easton Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2019, Easton managers have decided to use

hlep plz image text in transcribed
image text in transcribed
image text in transcribed
Easton Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2019, Easton managers have decided to use the same indirect manufacturing costs per wheel rim that they computed in 2018 using activity-based costing Click the loon to view the 2018 Indirect manufacturing costs per wheel rim) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2019 Click the icon to view the expected information) Because of limited machine hour capacity, Easton can produce either 2.000 standard rims or 2.000 deluxe rims Read the requirements Requirement 1. If Easton managers rely on the ABC unit cost data computed in 2018, which model will they produce? Carry each cost to the nearest cont (Ignore selling and administrative expenses for this calculation.) Use the ABC unit cost data to compute the gross profit per unit for each model ABC Data Gross Profits Standard Deluxe 700.00 $ 940,00 Sales price Direct materials - X Direct labor Data Table Indirect manufacturing costs Gross profit per unit Indirect Manufacturing Cost Per Unit Standard Deluxe ABC costs $ 412.80 $ 654 80 Single-rate costs $ 42704 $ 640.56 Print Done Easton Company manufactures wheel rims. The company produces two wheel rim models: standard and deluxe. For 2019, Easton managers have decided to use the same indirect manufacturing costs per Wheel rim that they computed in 2018 using activity-based costing, Click the icon to view the 2018 indirect manufacturing costs per wheel tim.) In addition to the unit Indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2019: m (Click the icon to view the expected information) Because of limited machine hour capacity. Easton can produce either 2.000 standard rims or 2.000 deluxerims Read the requirements Requirement 1. If Easton managers rely on the ABC unit cost data computed in 2018, which model will they produce? Carry each cost to the nearest cent (Ignore selling and administrative expenses for this calculation) Use the ABC unit cost data to compute the gross profit per unit for each model ABC Data Gross Profits Standard Deluxe 700.00 $ 940.00 Data Table Sales price Direct materials Direct labor Indirect manufacturing costs Gross profit per unit Sales price Direct materials Direct labor Standard Deluxe $ 700.00 $ 940.00 31.00 48.00 45.00 50.00 Print Done Easton Company manufacturen whool time. The company produces two whool im models: standard and deluxe For 2019, Easton managers have decided to se the same indirect manufacturing costs per wheel rim that they computed in 2018 using activity-based costing Click the icon to view the 2018 Indirect manufacturing costs por whnet rim) In addition to the unit indirect manufacturing costs, the following data are expected for the company's standard and deluxe models for 2019 Click the loon to view the expected information Because of limited machine hour capacity. Easton can produce other 2,000 standard rims or 2,000 deluxerims Read the requirements Requirement 1. It Easton managers rely on the ABC unit oost data computed In 2018, which model wil they produce? Curry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation) Use the ABC unit cost data to compute the gross profit per unit for each model ABC Data Gross Profits Sales price Direct materials Direct labor Standard Deluxe $ 700.00 $ 940.00 31.00 48,00 45.00 50,00 412.80 654 80 Indirect manufacturing costs Gross profit per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess

9th Edition

032418803X, 978-0324188035

More Books

Students also viewed these Accounting questions