Reference no: EM132582771

Question 1: HASF Glassworks makes glass flanges for scientific use Material cost RS. 10 per flange and the glass blowers are paid a wage rate of 20 per hours a glass blower blows 20 flanges per hours. Fixed manufacturing costs for flanges are 10,000 per period. other non-manufacturing cost associated with flanges are 10,000 per period and are fixed.

Required

1. find out variable cost per units and total fixed cost

2. Assume Company manufactures and sells 15,000 flanges this period their competitor sells flanges for 8.25 each. can company sell below competitor price and make a profit on the flanges

3. how would be your answer to requirement 2 differ if company made and sold 10,000 flanges this period why

Question 2: The ASF Corporation manufactures one product and accounts for costs by a job orders cost system You have obtained the following information for the year ended December 31 2010 from the Corporations books and records

Total manufacturing cost added during 2010 was 1,000,000

Cost of goods manufactured was 970,000

Factory overhead was applied to work in process inventory at 75% of direct labor (applied factory overhead for the year 27% of the total manufacturing cost)

Beginning work in process inventory January 1 was 80% of ending work-in - process inventory December 31