Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need a correct break down on how to do this please I need help with this question please and a breal down on how to
need a correct break down on how to do this please
I need help with this question please and a breal down on how to do it. thank you
Cost Formulas, Single and Multiple Activity Drivers, Coefficient of Correlation Kimball Company has developed the following cost formulas: Material usage: Y- $80x; r = 0.95 Labor usage (direct): Y = $20x; -0,96 Overhead activity: Y. - $350.000 - 5100X; - 0.75 Selling activity: Y; - $50,000 - $10X30.93 where Direct labor hours The company has w policy of producing on demand and every little, if any, finished goods inventory (this produced and told) tach unit uses one direct labor hour for production The president of Kimball Company has recently implemented a policy that any special orders will be accepted the cover the cost that the orders cause. This policy was implemented because Kimball industry is in arcession and the company is producing well below cacat and expects to continue doing so for the coming year. The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and sold layoffs. Also, any orders above variable costs will increase overall profitability of the company Required: 1. Compute the total unit variable cost suppose that imballan opportunity to accept an order for 20.000 units at 1320 per unit 106.35 x Cost Formulas, Single and Multiple Activity Drivers, Coefficient of Correlation Kimball company has developed the following cost formulas: Material usage: Ym - $80x; r = 0.95 Labor usage direct): Y = $20x; -0.96 Overhead activity: Yo - $350,000+ $100x; r = 0.75 Selling activity: Y = $50,000 + $10x; r = 0.93 where X = Direct labor hours The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced equals units sold). Each unit uses one direct labor hour for production The president of Kimball company has recently implemented a policy that any special orders will be accepted if they cover the costs that the orders cause. This policy was implemented because Kimball's industry is in a recession and the company is producing well below capacity and expects to continue doing so for the coming year). The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and avoid layoffs. Also, any orders above variable costs will increase overall profitability of the company, Required: 1. Compute the total unit variable cost. Suppose that Kimball has an opportunity to accept an order for 20.000 units at $220 per unit S 106.35 X Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started