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RequiredAnswer the following questions. Dowling Computers makes 5 , 8 0 0 units of a circuit board, CB 7 6 , at a cost of

RequiredAnswer the following questions.
Dowling Computers makes 5,800 units of a circuit board, CB76, at a cost of $270 each. Variable cost per unit is
$160, and fixed cost per unit is $110. HT Electronics offers to supply 5,800 units of CB76 for $240. If Dowling
buys from HT, it will be able to save $30 per unit of fixed costs but continue to incur the remaining $80 per unit.
Should Dowling accept HT's offer? Explain.
LF Manufacturing is deciding whether to keep or replace an old machine. It obtains the accompanying
information. LF Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes
Should LF replace the old machine? Explain.
Llew the LF Manufacturing information
Requirement 1. Dowling Computers makes 5,800 units of a circuit board, CB76, at a cost of $270 each. Variable
cost per unit is $160, and fixed cost per unit is $110. HT Electronics offers to supply 5,800 units of CB76 for $240. If
Dowling buys from HT, it will be able to save $30 per unit of fixed costs but continue to incur the remaining $80 per
unit. Should Dowling accept HT's offer? Explain.
Begin by calculating the relevant cost per unit. (If an input field is not used, leave the input field(s) empty. Do not
select a label or enter a zero.)
Unit relevant cost
LF Manufacturing Information
Compute the flexible-budget variance.
Compute the price and efficiency variances.
Comment on the results for requirements 1 and 2 and provide a possible
explanation for them.Paulson Foods manufactures pumpkin scones. For January, it budgeted to purchase and use 14,000 kilograms of
pumpkin at $0.85 a kilogram. Actual purchases and usage for January were 14,250 kilograms at $0.82 a kilogram.
Paulson budgeted for 56,000 pumpkin scones. Actual output was 51,300 pumpkin scones.
Requirement 1. Compute the flexible-budget variance.
Let's begin by determining the formula used to calculate the actual pumpkin costs, and then enter the amounts in the
formula and calculate the cost.
Compute the flexible-budget variance.
Compute the price and efficiency variances.
Comment on the results for requirements 1 and 2 and provide a possible
explanation for them.
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