EXHIBIT 1 | | | | | | Total | Valves | Pumps | Flow Controllers | Manufacturing Costs | | | | | Material Cost per Unit | | $ 16 | $ 20 | $ 22 | Units/Month | | 7,500 | 12,500 | 4,000 | Material Cost per Month | | 120,000 | 250,000 | 88,000 | | | | | | Labor Unit Cost | | | | | Production Runs per Month | | 1 | 5 | 10 | Set-up Labor Hrs/Prod. Runs | | 8 | 8 | 12 | Run Labor Hrs/Unit | | 0.25 | 0.5
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released for sale. Using the single-cavity mould, monthly production capacity is about 40,000 units. Ken wishes to maintain a minimum of 10,000 units inventory; however, if inventory exceeds 10,000 units, warehouse space would have to be rented at a cost of $200 per month. The warehouse space has a capacity of 35,000 units and can be leased on a monthly basis; no annual lease is required. Lease payments are due the month following the actual lease. Perfect Plastics requires production runs of at
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first stage allocation of overhead costs to the activity cost pools. 2. Compute activity rates for the activity cost pools. 3. Construct a table showing the overhead costs of units and four orders. Ferris Corporation makes a single product - a fire resistant commercial filing cabinet - that it sells to office furniture distributors. The company has a simple ABC system that it uses for internal decision making. The company has two overhead departments whose costs are listed below: |Manufacturing
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issue at hand involves the relevant cost of a set of replacement parts. The parts, however, range from those that are totally manufactured and ready for sale, to those that have not yet been manufactured but for which raw material is on hand, to those that have not yet been manufactured and for which no inventory of raw material exists. The case solution turns in large part on the use of contribution analysis. However, the concepts of sunk costs, opportunity costs, and product substitution are prominent
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Cost Allocation Methods Don Lowery University of Phoenix The focus of this paper is to identify the basic aspects of the direct and step-down methods of cost allocation. Included will be a comparison of the two methods and their strengths and weaknesses. Direct Method Horngren defines the direct method of cost allocation as “a method for allocating service department costs that ignores other service departments when any given service department’s costs are allocated to the operating departments”
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Direct materials | $24,800 | $26,700 | Work in process | 57,600 | 55,200 | Finished goods | 83,300 | 87,400 | | | | Additional budget information follows: Total manufacturing costs | $354,500 | Cost of goods manufactured | 356,900 | | | Calculate the budgeted cost of goods sold. Answer | | | | | | | $352,800 | | | $350,400 | | | $361,000 | | | $359,300 | | | | | 10 points ------------------------------------------------- Question
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Problem 9-40 (60 minutes) 1. Sales budget for 20x0: | | | | | Units | Price | Total | Light coils | 60,000 | $120 | $ 7,200,000 | Heavy coils | 40,000 | 170 | 6,800,000 | Projected sales | | | $14,000,000 | 2. | Production budget (in units) for 20x0: | | | Light Coils | Heavy Coils | Projected sales | 60,000
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directly attibuted to cost and which cannot be directly attributed but are incurred upto their sales. You need to know the composition of cost at different stages. This will help you in the analysis of cost of a product so that same can be used for its proper management. In this lesson you will learn about cost sheet and its various components. OBJECTIVES After studying this lesson, you will be able to: state the meaning and type of Cost Sheet; state the importance of Cost Sheet; explain the
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TOPICS IN MANAGEMENT ACCOUNTING AMIS 4310 Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour
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9-40 Make or Buy; Strategy; Ethics (45 min) 1. An analysis of per unit and total costs for 32,000 units shows that the Midwest Division should purchase the parts for a saving of $15,440 ($575,040 - $559,600). Cost per unitTotal CostCost to purchase MTR-2000 from Marley Bid price from Marley$17.30$553,600 Equipment lease penalty [($36,000/12)x2]6,000Total cost to purchase$559,600 Cost for Midwest to Make MTR-2000 Direct material ($195,000/30,000)x1.087.02$224,640 Direct labor ($120,000/30
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