Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Management et Plascence Corporation is considering whether to purchase a new modes 30 machine cost $525.000 or a new model 220 machine cu 5422.0 to

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Management et Plascence Corporation is considering whether to purchase a new modes 30 machine cost $525.000 or a new model 220 machine cu 5422.0 to replace a machine that was purchased van go for 5488.000. The old mache was used to make product broke down a week Untorfortely, the old machine cannot be repaired Management has decided to buy the new model 220 machine. these cacy than the new model 20 machine, but its city is sufficient to contine making en Metcome, but rejected the eve of my dioperaat were done instead of investing 5423.000 in the new machine the money could be vested in project would om at 40000 in making the down to the model 220 machine, the county cota SA Schonhardt Corporation's relevant range of activity is 4000 units to 5.500 units. When it produces and sells 4,750 units, its average costs per unit are as follows: Direct materials Direct lobor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed atministrative expense Sales comissions Variable sinistrative expense Average Cost per Unit $8.00 53.70 $2.05 $3.00 51.35 $1.05 $1.15 $1.05 14.500 units we produced, the total amount of fixed manufacturing cost curred closest to Choice 522.50 Weck, in more and without a Product P4 The company has an actiuity-based conting system with the following act cost pools, acoveces, and expected activity Estimate Labor related onders Activity Measures DHS urdere Cost 1112,100 55,210 Product Product 1.400 200 2. 1,600 7.700 The noted to producte under och best coming to Round your termos de 2 decimal aces Help Save & EU Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $525,000 or a new model 220 machine costing $423,000 to replace a machine that was purchased 8 years ago for $488,000. The old machine was used to make product 1431 untit broke down last week Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity then the new model 370 machine, but its capacity is suffichent to continue making product 143 Management also considered, but rejected, the alternative of simply dropping product 143. that were done, instead of investing $423,000 in the new machine the money could be invested in a project that would return a total of $450,000 In making the decision to West in the model 220 machine, the opportunity cost was Saved Management also considered, but rejected, the alternative of simply dropping product 143L if that were done, instead of investing $423 invested in a project that would return a total of $450,000 in making the decision to invest in the model 220 machine, the opportunity cost was: Multiple Choice $488.000 5423,000 3525.000 $450 000 Schonhardt Corporation's relevant range of activity is 4000 units to 5,500 units When it produces and sells 4,750 units, as average costs per unit are as follows Average Cost per Unit $8.00 $3.70 $2.05 Direct materials Direct labor Variable manufacturing overhead #ixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $1.15 $1.05 $1.15 $1.09 4500 units are produced the mount of find manufacturing continued is closest to erm Saved 144,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to :20:43 Multiple Choice $27.550 $20,663 $19,238 $14250 Werick, Inc., manufactures and sells two products Product T and Product P4 The company has an activity based costing system with the following activity cost poolt activity measures and expected twity Estimated Expected Activity Activity Overhead Activity cost pools Measures Cost Product Product Pa Total Labor-related DUM $117.100 4.000 7.200 Production orders orders 55,210 200 Order size 2.900 51,035,80 700 The voice to Product under activity Congreso Round your intermediate calculations to 2 decimal places Production orders Order size orders MHS 55,219 863,520 $1,035,830 700 2,900 200 3,600 900 6,500 The total overhead applied to Product P4 under activity based costing is closest to (Round your intermediate calculations to 2 decim Multiple Choice $808310 $478.200 $529,552 0

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

Internal Audit Emphasis Management In Organizations

Authors: Juarez Pinto, Anísio Cândido Pereira, Joshua Onome Imoniana

1st Edition

3659942332, 978-3659942334

More Books

Students also viewed these Accounting questions

Question

What are some limitations of using the direct write-off method?

Answered: 1 week ago