This subject is called Accounting cost 1
Countryside Apparel (CA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alternative dye information include the following: (Click the icon to view the budgeted input data.) (Click the icon to view alternative dye information.) Read the requirements. vvouId CA De better off financially by switching to the environmentally Thendiy aye? No, CA will not be better off financially by switching to the environmentally friendly dye. Requirement 2. Assume CA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If USA can reduce fabric and labor costs each by 2% per month, by how much will overall costs decrease at the end of 12 months? First calculate the fabric costs resulting from the Kaizen improvements, then in the next step calculate the labor costs. (Round all intermediary calculations and the amounts you input in the cells to the nearest dollar.) Fabric Month Cost Data Table 1 More Info 2 Price 3 Fabric Cost per unit of output $ 6 per unit Quantity 0.50 yard per unit 0.25 DMLH per unit $12 per yard 4 Labor $16 per DMLH $ 4 per unit 5 6 CA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.75 per ounce. The company would still need ounces of dye per shirt. CA is reluctant to change because of the increase in costs and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $112,800 if it continues to use the harmful but less expensive dye. 4 ounces per unit $ 2 per unit Dye* $0.50 per ounce *For colored T-shirts only 7 8 9 Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts 13,000 units $ 13 per T-shirt Colored T-shirts 23,000 units $ 17 per T-shirt Print Done 10 11 12 Total Print Done Help Me Solve This e Text Pages Calculator UIOA VIICUR MISWE Countryside Apparel (CA) manufactures plain white and solid-colored T-shirts. Budgeted inputs and alternative dye information include the following: (Click the icon to view the budgeted input data.) (Click the icon to view alternative dye information.) Read the requirements. vvouId CA De better off financially by switching to the environmentally Thendiy aye? No, CA will not be better off financially by switching to the environmentally friendly dye. Requirement 2. Assume CA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If USA can reduce fabric and labor costs each by 2% per month, by how much will overall costs decrease at the end of 12 months? First calculate the fabric costs resulting from the Kaizen improvements, then in the next step calculate the labor costs. (Round all intermediary calculations and the amounts you input in the cells to the nearest dollar.) Fabric Month Cost Data Table 1 More Info 2 Price 3 Fabric Cost per unit of output $ 6 per unit Quantity 0.50 yard per unit 0.25 DMLH per unit $12 per yard 4 Labor $16 per DMLH $ 4 per unit 5 6 CA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.75 per ounce. The company would still need ounces of dye per shirt. CA is reluctant to change because of the increase in costs and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $112,800 if it continues to use the harmful but less expensive dye. 4 ounces per unit $ 2 per unit Dye* $0.50 per ounce *For colored T-shirts only 7 8 9 Budgeted sales and selling price per unit are as follows: Budgeted Sales Selling Price per Unit White T-shirts 13,000 units $ 13 per T-shirt Colored T-shirts 23,000 units $ 17 per T-shirt Print Done 10 11 12 Total Print Done Help Me Solve This e Text Pages Calculator UIOA VIICUR MISWE
