Managerial Accounting_Final,Cumulative Assessment-student.copy Spr Insert Draw Page Layout Formulas Data Review View Help Tell me what you Home Cut E Copy Paste B 1-IE-la-A-1 E!!Merge & Center . B I U Format Painter s-% , is ,00 Clipboard Font Alignment Number B40 2 Industrial Grinders 4 During the term, we had a case study, Industrial Grinders, which focused on Sunk and Opportunity Costs 6 Please refer to the table below, which comes from data in the ihdustrial Grinders case Industrial Grinders 100 Steel Rings (Unfinished or Specialized Steel) Competitor 100 Ihdustrial Grinders 100 Plastic Rings Steel Rings (Finished) 320.40 8 9 Selling Price S 32040 S 80.10 11 Costs 12 Direct Material 13 Direct Labor 14 Overhead 15 Departmental 16 Administrative 17 Total Manufacturing C S 18 19 Regarding the Overhead costs, these are allocated based on Direct Labor 20. The Variable Overhead costs are 80% of the Drect Labor amount, and relate to the benefits 21 for the labor force 76.65 46.80 4.20 S 15.60 32.76 31.20 15.60 6660 5 93.60 46,80 263.85 26.21 58.97 23 As you recall from the case, Industrial Grinders has the opportunity to hire the German Labor Force 24 at a rate of 70% of the normal rate, what would be the RELEVANT costs for Deason-Making 25 to produce the UNFINISHED (or Specialized Steel) to FINISHED steel? Please indicate your answers in the YELLOW boxes 26 above 28 Also, what PRICE POINT would the customer expect to see for the Steel Rings given that the Compettors Plastic Rings 29 last FOUR times as long? Please indicate in the YELLOW B0X in Cell E9 Instructions Cost Behavior BE- Analysis Multi-BE Problem NPV Sunk Costs Credit De Ready Calculate O Type here to search Managerial Accounting Final Cumulative Assessment student cop Insert Draw Page Layout Formulas Data Review View Help Tell me what you File Arial Paste Copy Format Painter B 1 u . . A-A-. ! Merge & Center . $ . % , lea Clipboard Font Number B40 6 Please refer to the table below, which comes from data in the Industrial Grinders case Industrial Grinders 100 Steel Rings (Unfinished or Speciaized Steel 80.10 Competitor 100 Industrial Grinders 100 Plastic Rings Steel Rings (Finished) 320.40 9 Selling Price 10 11 Costs 12 Direct Material 13 Direct Labor 14 Overhead 320 40 420 S 15 60 76.65 46.80 3120 15 60 6660 S 93 60 46 80 263.85 16 Administrative 17 Total ManufacturingC 26 21 19 Regarding the Overhead costs, these are alocated based on Drect Labor 201The Varable Overhead costs are 80% of the Drect Lator amount, and rate t te beets for the labor force. 23 As you recall from the case, Industrial Grinders has the opportunty to hire the German Labor Force 24 | at a rate of 70% of the normal rate what would be the RELEVANT costs for ecson-Mang 25 to produce the UNFINISHED (or Specislized Steel) to FNISHED steel? Please indicate your answers in the YELLOW boxes 26 above. 28 Also, what PRICE PONT would the customer expect to see for the Steel Rings given that the Compettors Plastic Rings 29 last FOUR times as long? Please indicate in the YELLOW BOX in Cell ES 0 Lasty, briefy comment on whether t would be cheaper to produce the Plasic Rings or to hire the German Labor from a 32 RELEVANT COST perspective. No more than two sentences are required Cost Behavior BE-Analysis Instructions Multi-BE Problem Sunk Costs NPV . Credit De Ready Calculate O Type here to search
