Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zenko Company has developed a new widget with the following cost information Variable manufacturing costs: $28 per unit Fixed manufacturing costs: $100,000 Variable selling and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Zenko Company has developed a new widget with the following cost information Variable manufacturing costs: $28 per unit Fixed manufacturing costs: $100,000 Variable selling and administrative costs: $14 per unit Fixed selling and administrative costs: $80,000 Zenko expects to produce and sell 10,000 units. It must invest $800,000 in equipment to produce the widgets and it desires a 20% return on investments. What is Zenko Company's selling price for one widget? $84 $96 $76 $72 The Sigma Division of Greek Products manufactures widgets and sells them externally for $142. Its variable cost is $84 per unit, and its fixed cost per unit is $20. The president of Greek Products wants the Sigma Division to transfer (sell) 8,000 units to another division that buys them from an outside supplier. The outside supplier charges the division $135 per unit. If Sigma Division agrees to do so, its variable costs will decrease from $84 to $80 because it will not have to cover packaging and shipping costs. Assuming the Sigma Division does not have any available capacity, the minimum transfer price it should accept is $104 $135 $138 $142 The following data is available for HVAC Specialists: Repair specialists' wages $ 150,000 Repair specialists' fringe benefits 60,000 Purchasing and parts' inventory manager's wages 40,000 Purchasing and parts' inventory manager's fringe benefits 16,000 Human resources' employee salary and benefits 50,000 (80% of HR employee's time applies to repair specialists and 20% to parts' employee) The desired profit margin is $35 per labor hour and 50% for parts and materials. HVAC estimates that repair specialists will incur 5,000 labor hours during the year and the total invoice cost of parts and materials will be $200,000. Using time and material pricing, compute the total bill (rounded to whole dollars) for a job that required 10 hours of labor and $1,000 of parts. $2,680 $2,730 $2,315 $2,650 Lampe Company has 4 Manufacturing divisions. It allocates corporate fed costs based on the sales revenue generated by each division Last year the Standard Division reported the following Standard Division Sales revenue $105,000 Variable costs 100,000 Direct fixed costs 9,000 Allocated fixed costs 12,000 Net income (loss) ($16,000) If Lampe eliminates (discontinues) the Standard Division: Lampe's net income will increase $4,000 Lampe's net income will increase $16,000. Lampe's net income will increase $7.000. Lampe's net income will decrease $5.000

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

Emerging Markets And Financial Resilience Decoupling Growth From Turbulence

Authors: C. Hooy, R. Ali, HooyChee-Wooi, S. Ghon Rhee

2nd Edition

1137266600, 9781137266606

More Books

Students also viewed these Accounting questions

Question

What do you want from your leader?

Answered: 1 week ago

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

4.6 Summarize job design concepts.

Answered: 1 week ago

Question

4.5 Explain what competencies and competency modeling are.

Answered: 1 week ago