Question 10.5pts

The Chromosome Manufacturing Company produces two products, X and Y. The company president, Jean Mutation, is concerned about the fierce competition in the market for product X. She notes that competitors are selling X for a price well below Chromosome's price of $13.50. At the same time, she notes that competitors are pricing product Y almost twice as high as Chromosome's price of $12.50.

Ms. Mutation has obtained the following data for a recent time period:

Product XProduct Y

Number of units11,0003,000

Direct materials cost per unit$3.23$3.09

Direct labor cost per unit$2.22$2.10

Direct labor hours10,0003,500

Machine hours2,1001,800

Inspection hours80100

Purchase orders1030

Ms. Mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. The overhead costs for this time period consisted of the following items:

Overhead Cost ItemAmount

Inspection costs$16,200

Purchasing costs8,000

Machine costs49,000

Total$73,200

Question #1:Using Direct labor Hours to allocate overhead costs determine the gross margin per unit for Product X. Choose the best answer from the list below.

$1.93

$3.12

$7.38

$2.43

$1.73

Question 21pts

Using ABC for overhead allocation, determine the gross margin per unit for Product Y. Choose best answer from list below.

$10.07

($2.27)

($5.23)

($7.02)

$7.02

Question 30.5pts

Hyde Farms Per Unit

Direct materials $19

Direct labor $11

Variable overhead $6

Fixed overhead $9

$45

Hydes

Hyde Farms Inc. a US based firm located in Topeka, Kansas has a capacity of 95,000 units. The are currently producing and selling 90,000 units at $50 per unit. The cost of a unit at the present production level is provided in the analysis above. An order for 10,000 units has just been received from Von Boom Corp (a domestic business based in Belgium) at a price of $42 per unit. Freight costs of $2 per unit would be required (paid by Hyde) for international shipping. Should Hyde accept the order from Von Boom?

Yes, Hyde's Profit will Increase by $40,000

Yes, Hyde's Profits will Increase by $15,000

No, Hyde's Profits Will be Reduced by $50,000

No, Hyde's Profits Will Be Reduced by $75,000

Yes, Hyde's Profits Will Increase by $35,000

No, Hydes profits Will be reduced by $30,000

Question 40.25pts

Consider the following information for the Bordon Company for August: For fiscal 2018 the standard direct material cost for Borden's product is $50 per unit (12.5kg at $4 per kg). In August, 2018 the actual amount paid for 45,600kg of material purchased and used was $173,280 and the direct material usage variance was $15,200 unfavorable.

What was theactual productionin August 2018?

3344

1670

2435

3430

Question 50.25pts

Continuing with the Borden Company. What was the material price variance for the month of August?

$5,080 fav

$9,120 unfav

$9,120 fav

$5,080 unfav

Insufficent data to answer the question

Question 61pts

A list of account balances for Nicholas Corporation follow:

Revenue and Expenses January 1 inventories

Purchases of raw materials $140,000

Raw materials $45,000

Direct labor $225,000

Work in process $30,000

Indirect labor $40,000

Finished Goods $105,000

Rent - factory $84,000

Depreciation - machinery $35,000

Insurance - factory $18,000

December 31 inventories

Salesperson's salaries $72,000

Raw materials $40,000

Maintenance - machinery

$12,000

Work in process $35,000

Administrative salaries

$57,000

Finished goods $110,000

Miscellaneous - factory

$26,000

Miscellaneous - office $45,000

Sales revenues $850,000

To answer questions 6 and 7 you will need to do an income statement. To get the problems correct you will need to determine the Cost of Goods manufactured and the Cost of Goods Sold. To this requires an understanding of the difference between product and period costs.

Choose the best answer below for your determination of thecost of goods sold

$575,000

$162,000

$580,000

$737,000

Question 70.5pts

Continuing with the Nicholas Corporation, what is Nicholas Corporations's Net Income? Choose the best answer below.

$113,000

$97,000

$275,000

$101,000

$575,000

Question 80.5pts

Oxford Street Apparel produces and sell two lines of business suits; the European and the Legacy. The following monthly data is provided in the table below.

In addition the firm's budgeted net income is $45,000 per month. Calculate the firm's fixed cost and select the answer below that best matches yours.

European

Legacy

Estimated unit sales per month

500

1000

Selling price

$200

$175

Variable manufacturing costs

$110

$100

Variable selling and administrative costs

$10

$10

$25,000

$40,000

$60,000

$50,000

$75,000

Question 90.5pts

Continuing with Oxford Street Apparel, compute the firms profit assuming that 1,500 units are sold in a 1:1 sales mix (HINT: 750 European, and 750 Legacy suits are sold. You will need to use your answer from the problem above to solve this problem)

$57,200

$60,000

$108,750

$48,750