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Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,000 a year. The company allocates these

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Ibsen Company makes two products from a common input. Joint processing costs up to the split-off point total $45,000 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-off point or processed further. Data concerning these products appear below: Required: a. What is financial advantage (disadvantage) of processing Product X beyond the split-off point? (Negative amount should be indicated by a minus sign.) b. What is financial advantage (disadvantage) of processing Product Y beyond the split-off point? c. What is the minimum amount the company should accept for Product X if it is to be sold at the split-off point? d. What is the minimum amount the company should accept for Product Y if it is to be sold at the split-off point? Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,300 units of the part that are needed every year. An outside supplier has offered to make the part and sell it to the company for $30.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,600 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $14,300 per year for that product. Required: a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? b. Should the company make or buy Q89? Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $15 per direct labor-hour, which was calculated using the following budgeted data: Management is considering a special order for 570 units of product 096S at $51 each. The normal selling price of product O96S is $62 and the unit product cost is determined as follows: If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by the special order. Required: The financial advantage (disadvantage) for the company as a result of accepting this special order would be: Additional data concerning these products are listed below. The mixing machines are potentially the constraint in the production facility. A total of 6,870 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? Complete this question by entering your answers in the tabs below. How many minutes of mixing machine time would be required to satisfy demand for all three products? Complete this question by entering your answers in the tabs below. How much of each product should be produced to maximize net operating income? (Round final answers to the nearest whole unit.) Complete this question by entering your answers in the tabs below. Jp to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round your intermediate calculations and final answer to 2 decimal places.)

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