Please complete questions 1 through 5. While showing work and being organized as possible. Thank you, your help is highly appreciated!!!
Accounting 2120-Chapter 22 Assignment 1. Talia Corp. produces digital cameras. For each camera produced, direct materials are $25, direct labor is $18, variable manufacturing overhead is $10, fixed manufacturing overhead is $31, variable sclling and administrative expenses are $9, and fixed selling and administrative expenses are $26. Instructions Com pute the target-selling price assuming that a 45% markup on total per unit cost. 2. Tina Co. expects to produce 300,000 products in the coming year and has invested $40,000,000 in the equipment needed to produce the products. Tina requires a return on investment of 25%. Instructions What is Tina's ROI per unit? 3. Trout Company is considering introducing a new line of pagers targeting the preteen population. Trout believes that if the pagers can be priced competitively at $45, approximately 500,000 units can be sold. The controller has determined that an investment in new equipment totaling $4,000,000 will be required. Trout requires a minimum rate of return of 14% on all investments. Instructions Compute the target cost per unit of the pager. 4. Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units. Per Unit $42 54 72 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $12,000,000 84 7,200,000 The company has a desired ROI of 25%. It has invested assets of $144,000,000. Instructions Compute each of the following: 1. Total cost per unit. 2. Desired ROI per unit. 3. Markup percentage using total cost per unit. 4. Target selling price. Accounting 2120-Chapter 22 Assignment 5. Greasy Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2006: Time Charges $600,000 Material Charges Technicians' wages and benefits Parts manager's salary and benefits Office manager's salary and benefits Other overhead Total budgeted costs S 72,000 18,000 112,000 110,000 S200,000 S760,000 Greasy Spoon has budgeted for 10,000 hours of technician time during the coming year. It desires a $64 profit margin per hour of labor and a 50% profit margin on parts. Greasy Spoon estimates the total invoice cost of parts and materials in 2006 will be $500,000. Instructions 1. Compute the rate charged per hour of labor. 2. Compute the material loading charge. 3. Greasy Spoon has received a request from Lime Corporation for an estimate to repair a commercial fryer The company estimates that it would take 20 hours of labor and $8,000 of parts. Compute the total estimated 6. Sandbar Company, a division of Dudge Cars, produces automotive batteries. Sandbar sells the batteries to its customers for $82 per unit. The variable cost per unit is $38, and fixed costs per unit are $16. Top management of Dudge Cars would like Sandbar to transfer 30,000 batteries to another division within the company at a price of $54. Sandbar is operating at full capacity Instructions Compute the minimum transfer price that Sandbar should accept
