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##### accounting problems with A+ answers

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Question;1.;(TCO;1) For each of the following drivers identify an;appropriate activity.;a. # of machines;b. # of setups;c. # of inspections;d. # of orders;e. # of runs;f. # of bins or aisles;g. # of engineers;2. (TCO;2) Lubriderm Corporation has the following budgeted sales for the next;six-month period;Month Unit Sales;June 90,000;July 120,000;August 210,000;September 150,000;October 180,000;November 120,000;There were 30,000 units of finished goods;in inventory at the beginning of June. Plans are to have an inventory of;finished products that equal 20% of the unit sales for the next month.;Five pounds of materials are required for;each unit produced. Each pound of material costs \$8. Inventory levels for;materials are equal to 30% of the needs for the next month. Materials inventory;on June 1 was 15,000 pounds.;Prepare a purchases budget in pounds for;July, August, and September, and give total purchases in both pounds and;dollars for each month.;3. (TCO;3) As part of his job as cost analyst, Max Thompson collected the following;information concerning the operations of the Machining Department;Observation Machine-hours Total Operating;Costs;January 4,000 \$45,000;February 4,600 49,500;March 3,800 45,750;April 4,400 48,000;May 4,500 49,800;Use the high-low method to determine the;estimating cost function with machine-hours as the cost driver.;4.;(TCO;5) Lewis Auto Company manufactures a part for use in its production of;automobiles. When 10,000 items are produced, the costs per unit are;Direct materials \$ 12;Direct manufacturing labor 60;Variable manufacturing overhead 24;Fixed manufacturing overhead 32;Total \$128;Monty Company has offered to sell Lewis;Auto Company 10,000 units of the part for \$120 per unit. The plant facilities;could be used to manufacture another part at a savings of \$180,000 if Lewis;Auto accepts the supplier's offer. In addition, \$20 per unit of fixed;manufacturing overhead on the original part would be eliminated.;a. What is the relevant per unit cost for;the original part?;b. Which alternative is best for Lewis Auto;Company? By how much?

Paper#38770 | Written in 18-Jul-2015

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