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MA CH14 HW1;1.;value;12.50 points;Required;1-a.;What is the relevant cost of theolite for the purpose of analyzing the special-order decision? (Omit the " p " sign in your response.);Relevant cost;p;1-b.;The relevant cost of theolite for the purpose of analyzing the special-order decision is an example of;Sunk cost;Opportunity cost;Historical cost;references;Worksheet;Difficulty: Easy;2.;value;12.50 points;2.;Identify the relevance of each of the numbers given in the exercise in making the decision.;(a) Sales value;(b) Book value;(c) Current purchase cost;references;3.;value;12.50 points;Zytel Corporation produces cleaning compounds and solutions for industrial and household use. While most of its products are processed independently, a few are related. Grit 337, a coarse cleaning powder with many industrial uses, costs $2.80 a pound to make and sells for $4.00 a pound. A small portion of the annual production of this product is retained for further processing in the Mixing Department, where it is combined with several other ingredients to form a paste, which is marketed as a silver polish selling for $6.10 per jar. This further processing requires 1/4 pound of Grit 337 per jar. Costs of other ingredients, labor, and variable overhead associated with this further processing amount to $2.30 per jar. Variable selling costs are $0.20 per jar. If the decision were made to cease production of the silver polish, $9,500 of Mixing Department fixed costs could be avoided. Zytel has limited production capacity for Grit 337, but unlimited demand for the cleaning powder.;Required;Calculate the minimum number of jars of silver polish that would have to be sold to justify further processing of Grit 337. (Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number.);Minimum number of jars;rev: 10_07_2013_QC_36751;references;[The following information applies to the questions displayed below.];Upstate Mechanical, Inc. has been producing two bearings, components T79 and B81, for use in production. Data regarding these two components follow.;T79;B81;Machine hours required per unit;2.50;3.00;Standard cost per unit;Direct material;$;2.25;$;3.75;Direct labor;4.00;4.50;Manufacturing overhead;Variable *;2.00;2.25;Fixed ?;3.75;4.50;Total;$;12.00;$;15.00;* Variable manufacturing overhead is applied on the basis of direct-labor hours.;? Fixed manufacturing overhead is applied on the basis of machine hours.;Upstate Mechanical?s annual requirement for these components is 8,000 units of T79 and 11,000 units of B81. Recently, management decided to devote additional machine time to other product lines, leaving only 41,000 machine hours per year for producing the bearings. An outside company has offered to sell Upstate Mechanical its annual supply of bearings at prices of $11.25 for T79 and $13.50 for B81. Management wants to schedule the otherwise idle 41,000 machine hours to produce bearings so that the firm can minimize costs (maximize net benefits).;rev: 12_06_2012, 01_02_2013;4.;value;12.50 points;Required;1.;Compute the net benefit (loss) per machine hour that would result if Upstate Mechanical accepts the supplier?s offer of $13.50 per unit for component B81. (Round your answer to 2 decimal places. Input the amount as positive value. Omit the "$" sign in your response.);per machine hour if component B81 is purchased is;$


Paper#76843 | Written in 18-Jul-2015

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