The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an...
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The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021: (Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs More info Total Manufacturing Costs of CMCB Manufacturing Cost per Unit Swanson manufactured 9,500 CMCBs in 2020 in 50 batches of 190 each. In 2021, Swanson anticipates needing 9,000 CMCBs. The CMCBS would be produced in 90 batches of 100 each. The Mobey Corporation has approached Swanson about supplying CMCBS to Swanson in 2021 at $440 per CMCB on whatever delivery schedule Swanson wants. Print Done Data table Current Costs in 2020 Expected Costs in 2021 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB 182 $ 170 41 29 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,750 1,500 Fixed manufacturing cost - X Fixed manufacturing overhead costs that can be avoided if CMCBs are not made 570,000 450,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBS are not made 570,000 1,080,000 Print Done The Swanson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2020 and the expected costs in 2021: (Click the icon to view the costs.) (Click the icon to view the make-versus-buy information.) Read the requirements. Requirement 1. Calculate the total expected manufacturing cost per unit of making CMCBs in 2021. Direct materials Direct manufacturing labor Variable batch manufacturing costs Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs More info Total Manufacturing Costs of CMCB Manufacturing Cost per Unit Swanson manufactured 9,500 CMCBs in 2020 in 50 batches of 190 each. In 2021, Swanson anticipates needing 9,000 CMCBs. The CMCBS would be produced in 90 batches of 100 each. The Mobey Corporation has approached Swanson about supplying CMCBS to Swanson in 2021 at $440 per CMCB on whatever delivery schedule Swanson wants. Print Done Data table Current Costs in 2020 Expected Costs in 2021 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB 182 $ 170 41 29 Variable manufacturing cost per batch for setups, materials handling, and quality control 1,750 1,500 Fixed manufacturing cost - X Fixed manufacturing overhead costs that can be avoided if CMCBs are not made 570,000 450,000 Fixed manufacturing overhead costs of plant depreciation, insurance, and administration that cannot be avoided even if CMCBS are not made 570,000 1,080,000 Print Done
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