Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Help E12-28 (similar to) Meredith Corporation makes a special-purpose machine, D4H, used in the textile industry. Meredith has designed the D4H machine for 2017

image text in transcribed

Question Help E12-28 (similar to) Meredith Corporation makes a special-purpose machine, D4H, used in the textile industry. Meredith has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine Meredith presents the following data for 2016 and 2017 i(Click the ican to view the data.) (Click the icon to view additional information.) Read the urents. Requirement 1. Calculate the amount and cost of 8 unused manufacturing capacity and b) unused selling Bnd customer service capacity at the beginning of 2017 based onctual production snd actual number of customers served in 2017 Cost of Amount of unused capacity unused capacity (a) Manufacturing aRequirements (b) Seling and cus More Info 1. Calculate the amount and cost of a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual 2016 2017 number of customers served in 20 2. Suppose Meredith can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs that Meredith could save in 2017 by downsizing manufacturing 1. Units of D4H produced and sold 225 2. Selling price 43,000 S 46,000 3. Direct materials (kilograms) 300,000 310,000 3. Meredith, in fact, does not eliminate any of its unused manufacturing capacity. Why might Meredith not downsize? 4. Direct material cost per kilogram 8.00 S 8.50 5. Manufacturing capacity in units of D4H 300 300 Print Done 6. Total oonversion costs 2,250,000$2,280,000 7. Conversion cost per unit of capacity (row 5) 7,500 S 7,600 Meredith produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017, Converslon costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Merecith can support, not the actual number of customers it serves. Meredith has 76 customers in 2016 and 83 customers in 2017 8. Selling and customer-service capacity Enter any number in the edit fields and 9. Tolal selling and customer-service costs 1,100,000 950,000 Selling and customer-service capacity per customer (row 9 10. row 8) parts 11,000 S 10,000 Question Help E12-28 (similar to) Meredith Corporation makes a special-purpose machine, D4H, used in the textile industry. Meredith has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine Meredith presents the following data for 2016 and 2017 i(Click the ican to view the data.) (Click the icon to view additional information.) Read the urents. Requirement 1. Calculate the amount and cost of 8 unused manufacturing capacity and b) unused selling Bnd customer service capacity at the beginning of 2017 based onctual production snd actual number of customers served in 2017 Cost of Amount of unused capacity unused capacity (a) Manufacturing aRequirements (b) Seling and cus More Info 1. Calculate the amount and cost of a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual 2016 2017 number of customers served in 20 2. Suppose Meredith can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs that Meredith could save in 2017 by downsizing manufacturing 1. Units of D4H produced and sold 225 2. Selling price 43,000 S 46,000 3. Direct materials (kilograms) 300,000 310,000 3. Meredith, in fact, does not eliminate any of its unused manufacturing capacity. Why might Meredith not downsize? 4. Direct material cost per kilogram 8.00 S 8.50 5. Manufacturing capacity in units of D4H 300 300 Print Done 6. Total oonversion costs 2,250,000$2,280,000 7. Conversion cost per unit of capacity (row 5) 7,500 S 7,600 Meredith produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017, Converslon costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Merecith can support, not the actual number of customers it serves. Meredith has 76 customers in 2016 and 83 customers in 2017 8. Selling and customer-service capacity Enter any number in the edit fields and 9. Tolal selling and customer-service costs 1,100,000 950,000 Selling and customer-service capacity per customer (row 9 10. row 8) parts 11,000 S 10,000

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

Principles Of Auditing

Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs

12th Edition

ISBN: 0256167796, 978-0256167795

More Books

Students also viewed these Accounting questions