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i would want it to be in excel and it will be due on 30th April. i have less than five days to submit. thank
i would want it to be in excel and it will be due on 30th April. i have less than five days to submit. thank you
all the five questions on excel
Questions no, 36, 41, 63, 17, 18
there are 5 questions there and all should be solved
Required Determine whether it is worthwhile to rework these components. LO 1,2,4 3-36 Relevant and sunk costs McKinnon Company's plant manager is considering buying a new grinding machine to replace an old grinding machine or overhauling the old one to ensure compliance with the plant's high-quality standards. The following data are available: OD GRINDING MACHINE Original cost $60,000 Accumulated depreciation 48,000 Annual operating costs 20,000 Current salvage value 6,000 Salvage value at the end of 5 years New GRINDING MACHINE Cost $60,000 Annual operating costs 8,000 Salvage value at the end of 5 years 1,000 OVERHAUL OF OLD GRINDING MACHINE Cost of overhaul SI5.000 Annual operating costs after overhaul 13.000 Salvage value at the end of 5 years Required (a) List all relevant costs and when they are incurred. (b) What costs should the decision maker consider as sunk costs? (c) What should the plant manager do? Why? Chapter 3 Using Costs in Decision Making 125 Required Should Premier make or buy G37? By how much will Premier be better off by choosing your deci- sion rather than the alternative? LO 1, 2,4 3-41 Make-or-buy, relevant costs, and opportunity cost Fab Motors has manufactured compressor parts at its plant in Pitcairn, Indiana, for the past 25 years. An outside supplier, Superior Compressor Company, has offered to supply compressor model C38 at a price of $200 per unit. Current unit manufacturing costs for C38 are as follows: Direct materials Direct labor Variable overhead Fixed overhead Total costs $213 Required (a) Should Superior Compressor's offer be accepted if the Pitcairn plant is presently operating below capacity? (b) What is the maximum acceptable purchase price if the plant facilities are fully utilized at present and if any additional available capacity can be deployed for the production of other compressors? LO 1,4 3-63 Dropping a product Merchant Company manufactures and sells three models of electronic printers. Ken Gail, president of the company, is considering dropping model JT484 from its product line because the company has experienced losses for this product during the past three quarters. The following product-level operating data have been compiled for the most recent quarter TOTAL JT384 T284 $500,000 100.000 $200.000 JT484 sam 200,000 $100,000 San 100.000 $100,000 600.000 $400,000 $50.000 CATEGORY Sales Variable costs Contribution margin Fixed costs Rent Depreciation Utilities Supervision Maintenance Administrative Total fixed costs Operating income (loss) 40,000 50,000 30,000 100.000 $330.000 $70,000 $25.000 30,000 20,000 15,000 15,000 30,000 $125.000 $65,000 $10.000 12000 5,000 5.000 6,000 20,000 $5.000 $12.000 $15.000 18 15.00 30.000 9.000 50,000 $137.000 (537,000) In addition, the following information is also available: Factory rent and depreciation will not be affected by a decision to drop model T484. Quarterly utility bills will be reduced from $40,000 to $31,000 if JT484 isdropped Supervision costs for JT484 can be eliminated if dropped. The maintenance department will be able to reduce quarterly costs by $7,000 if JT484 is dropped. Elimination of JT484 will make it possible to eliminate two administrative staff positions with combined salaries of $30,000 per quarter. Required (a) Should Merchant Company eliminate JT484? (b) Merchant's sales manager believes that it is important to continue to produce JT484 to maintain a full product line. He expects the elimination of JT484 will reduce sales of the remaining two products by 5% each. Will this information change your answer to part a? Explain. LO 3,5 5-17 Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company manufactures pumps and valves and uses a time-driven activity-based cost (TDABC) system. Last year, Halifax recorded the following data for assigning manufacturing overhead costs to its products: Chapter 5 Activity-Based Cost Systems 221 UNIT COST ESTIMATES (RATES PER HOUR) TOTAL UNIT TIME ESTIMATES (HOURS ASSIGNED TO PRODUCTS) PUMPS VALVES PRACTICAL CAPACITY NOT ASSIGNED TO PRODUCTS (HOURS) 1,500 1,800 Machine setups and run time Labor for setups, receiving and packing Engineering (for specializing products) $20.00 per machine hour $30.00 per labor hour $80.00 per engineering hour 5,000 6,000 200 Halifax also developed the following information on revenues and costs other than manufacturing overhead: Total revenues $890,000 Total direct labor cost $120,000 Total direct materials cost $90,000 SG&A expenses $100,000 LO5 5-18 Capacity costs Ken's Cornerspot, a popular university eatery in a competitive market, has seating and staff capacity to serve about 600 lunch customers every day. For the past two months, demand has fallen from its previous near-capacity level. Concerned about his declining profit, Ken decided to take a closer look at his costs. He concluded that food was the primary cost that varied with meals served; the remaining costs of $3,300 per day were fixed. With demand averaging 550 lunches per day for the past two months, Ken thought it was reasonable to divide the $3,300 fixed costs by the current average demand of 550 lunches to arrive at an estimate of $6 of support costs per meal served. Noting that his support costs per meal had now increased, he contemplated raising his meal prices. Required (a) What is likely to happen if Ken continues to recompute his costs using the same approach if demand decreases further? (b) Advise Ken on choosing a cost driver quantity for computing support costs per meal and explain why you advocate your choice of quantity Step by Step Solution
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