Calculate the total relevant cost

Assignment Help Managerial Accounting
Reference no: EM132986659

Question - Trying to determine the supervisor and answer question A1 only Pharoah Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 42,500 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation.

Direct materials $11

Direct labor 7

Variable manufacturing overhead 4

Direct fixed manufacturing overhead 9 (30% salaries, 70% depreciation)

Allocated fixed manufacturing overhead 7

Total unit cost $38

Clifton Clocks has offered to provide the timer units to Pharoah at a price of $35 per unit. If Pharoah accepts the offer, the current timer unit supervisory and clerical staff will be laid off. Calculate the total relevant cost to make or buy the timer units.

Reference no: EM132986659

Questions Cloud

What is your forecast of free cash flows for that? year : You also forecast a decrease in working capital of $93,000 that year. What is your forecast of free cash flows for that? year
What amount she will have finally : What amount she will have finally when the company returns the amount to her after 3 years? How much total interest should she earn in 10 years' time
Type of design strategies : How might the project team recommending an ERP design strategy justify its recommendation as compared with other type of design strategies?
Rapid environmental changes on organizations : Discuss the impact of rapid environmental changes on organizations?
Calculate the total relevant cost : Clifton Clocks has offered to provide the timer units to Pharoah at a price of $35 per unit. Calculate the total relevant cost
Cloud environment : Discuss the challenges that incident handlers face in identifying incidents when resources have been moved to a cloud environment.
Calculate the firm predetermined overhead rate : Indirect labour 20000, Supervisory salaries 150 000, Electricity 30 000, Calculate the firm predetermined overhead rate
Prepare a construction contract in consultation : Prepare a construction contract in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements
Freeze systems as part of the evidence : When law enforcement becomes involved, the need may arise to freeze systems as part of the evidence.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What increases the degree of operating leverage

The degree of operating leverage will decrease if what increases? Contribution margin per unit./ Operating income per unit./Fixed cost per unit

  How many units were produced

Cooper Company purchased and used 6,600 gallons, paying $46,700. The direct materials quantity variance was $1,260 unfavorable. How many units were produced

  Find what is the total manufacturing cost assigned to job

If Job A-500 consists of 40 units, what is the unit product cost for this job? (Round your answer to 2 decimal places.) What is the total manufacturing cost?

  Events that they have serviced

Coopers Ltd has a Chain of operations of $22,500,000 of revenue from 5,000 events that they have serviced.

  Which is true when using the net present value method

Which is true when using the net present value method to evaluate investments? An assumption of net present value method is that cash flows can be immediately.

  How much will have after eight years

Assuming no withdrawal penalties, how much will you have after eight years if the interest rate is 7%? What is the present value of these cash flows?

  Which of an unfavorable direct labor rate variance coupled

An unfavorable direct labor rate variance coupled with a favorable direct labor efficiency variance would most likely result from which of the following?

  What is the present value of tax savings

Assume a tax rate of 40 percent and those current losses can be used to offset taxable income in future years. What is the present value of tax savings related to the operating losses in years 1 and 2?

  How production department should generally be responsible

How The production department should generally be responsible for materials price variances that resulted from?purchases made in uneconomical lot-sizes.

  Calculate the total production costs of the disney project

Calculate the total production costs of the Disney Project using traditional costing, when manufacturing overhead is applied at 125% of direct labour cost.

  Determining relevant per unit cost

Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are:

  Does dreaming bhd need to report loan as a non-current

Does Dreaming Bhd need to report this loan as a non-current liability in the Balance Sheet as at 31 December 2018? Support your answer

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd