Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have posted this befor but the answers are incorrect. I need help with this asap please Corporate social responsibility Quicksaw inci is a production

I have posted this befor but the answers are incorrect. I need help with this asap please image text in transcribed
image text in transcribed
Corporate social responsibility Quicksaw inci is a production company that is in the process of testing a strateolic intiative aimed at increasing oross profit. The companys current sales revenue is $1.5 mallion. Currentiv, the company's gross profit is 35% of sales, but the company's target gross profit percentage is 45%. The company's current monthly cost of production is $975,000. Of this cost, 60% is for labor, 30% is for materials, and 10% is for overhead. The strategic inliative being tested at Quickaw is a redesign of its production process that splits it into two sequential procedures, The makevo of the costs of production for Procedure 1 is currently 50% direct laboc, 45% direct materials, and 5\% overhead. The makevp of the costs of production for Procedure 2 is currentiv 40% direct laboc, 25% direct materials, and 35% overhead, Company management estimates that Procedure 1 costs twice an mudrat Procedure? 2 . Required: 1. Determine what the cost of laboc, materials, and overhead for both Procedures 1 and 2 would need to be for the companv to meet itu tarpet dross. profit at the current level of sales. 2. The company actual direct materials cost is $270,000 for Procedure 1 . Decermine the actual cost of divect tabor, direct inatenals, and overthead for each procedure, and the total cost of prodoction for each procedure. 2. The company's actual direct materials cost is $270,000 for Procedure 1. Determine the actual cost of direct labor, direct materials, and overfie ad for each procedure, and the total cost of production for each procedure. 3. The company is planning a cse initiative to reuse some of the indirect materials used in production during Procidure 2 . These indirect materials normally make up 7596 of the overthead cost for Procedure 2, but the CSR initiative would reduce the usage of indirect matarials. Determine what the maximum new cost of these in dicect materials could be for procedure 2 ir this CSR initiative is expected to enable the company to meet its tarcet oross profit percentage (holdine all other costs constant). Maximum few cost of P2 overhead materials 3 x

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_2

Step: 3

blur-text-image_3

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

Audit Of The Drug Enforcement Administrations Controls Over Seized And Collected Drugs

Authors: Office Of Inspector General, U.S. Department Of Justice, Penny Hill Press

1st Edition

1537075683, 978-1537075686

More Books

Students also viewed these Accounting questions

Question

Identify the basic types of strategic alliances

Answered: 1 week ago