Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Only two problems please no guessing. Original work and show work. If you could get it done now would be great. Zing Roast Coffee Company

Only two problems please no guessing. Original work and show work. If you could get it done now would be great.

image text in transcribed Zing Roast Coffee Company produces Columbian coffee in batches of 5,300 pounds. The standard quantity of materials required in the process is 5,300 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of $10,450 per batch. The additional processing will also cause a 4% loss of product due to evaporation. . Should Zing Roast sell Columbian coffee or process further and sell Decaf Columbian? SelectSell ColumbianProcess into Decaf Columbian c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places. $ per pound Matchless Computer Company has been purchasing carrying cases for its portable computers at a delivered cost of $57 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 42% of direct labor cost. The fully absorbed unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $30.00 Direct labor 22.00 Factory overhead (42% of direct labor) 9.24 Total cost per unit $61.24 If Matchless Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 13% of the direct labor costs. b. Assuming there were no better alternative uses for the spare capacity, it would Selectbe advisablenot be advisable to manufacture the carrying cases. Fixed factory overhead is Selectrelevantirrelevant to this decision

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

College Accounting Chapters 1-15

Authors: James A Heintz, Robert W Parry

19th Edition

0324376162, 978-0324376166

More Books

Students also viewed these Accounting questions

Question

1. Build trust and share information with others.

Answered: 1 week ago