User Account

All Pages

Find the annual cost savings

Assignment Help Cost Accounting
Reference no: EM132918689

Problem - XYZ Co. has estimated the cost of customer coordination activity as $1,000 per batch and the cost of inspection activity as $500 per inspection. The annual sales of 100,000 units of Product P is currently being produced in 10 batches of 10,000 units each and each batch requires 2 inspections, one at the start of production of the batch and the other at the end of production of the batch. The only customer for Product P has agreed to next year's requirement being manufactured in 4 batches of 25,000 units each. Assume that all the costs in the two activity pools are controllable. Find the annual cost savings that management should aim to achieve at the coordination activity and inspection activity pools based on the customer's new requirement plan?

A. $0

B. $20,000

C. $8,000

D. $12,000

E. $8,400

F. None of the above

Reference no: EM132918689

Questions Cloud

What the equivalent units of production for direct materials : What the equivalent units of production for direct materials and conversion costs are 1000 and 800 respectfully the weighted average method
Calculate and compare the cost to make vs the cost to buy : Based on the previous factors, should MGP make or buy this product? Calculate and compare the cost to make vs the cost to buy
What amount should bonita report in income statement : Bonita included the entire $76800 in its 2020 income tax return. What amount should Bonita report in its 2020 income statement for subscriptions revenue?
Hurricane katrina disaster area : Select a major organization that was located in the Hurricane Katrina disaster area.
Find the annual cost savings : Assume that all the costs in the two activity pools are controllable. Find the annual cost savings that management should aim to achieve
Developments in accounting theory and financial reporting : Evaluate different accounting theories and their implications in policy choice by managers and Synthesise the complex elements of the Conceptual Framework
What sunland should report retained earnings at : What Sunland should report retained earnings, 12/31/20, at? Correction of overstatement of depreciation expense in prior years, net of tax $ 650000
What is meant by continuous improvement : What is meant by continuous improvement? Briefly discuss the background of improvement planning.
Was there a violation of ethical standards here explain : Holmes Corporation manufactures electronic components for use in many consumer products. Was there a violation of ethical standards here

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate each of the given incentive plans at mcdonalds

Evaluate each of these incentive plans. Are there better alternatives? Be sure to consider the important things a manager and a restaurant should do to contribute to McDonald's overall company success.

  Effect of transactions on accounting equation

What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity - Effect of transactions on accounting equation

  Differentiated product strategy

State whether the company is following a low cost or a differentiated product strategy and explain your answer Jamphones is about to decide whether to launch

  Find the cost of work in process at the end

The total costs of completed and transferred to finished goods stockroom for the month amounted to P40,000. Find the cost of work in process at the end

  The estimates of the variable and fixed components

What is the most likely effect on the labor variances in the first month of this strike. the estimates of the variable and fixed components of repair cost would be

  Prepare a condensed cost of goods manufactured

Prepare an income statement and the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section - Prepare a condensed cost of goods manufactured schedule for Case

  Which is a non-value-added activity for a manufacturing firm

Assuming one answer only can be chosen, which of the following is a non-value-added activity for a manufacturing firm? Which of the following is an example of an engineered cost?

  Determine the total unit cost in Department X

In Department X, material application is described to you as follows: 10% is applied at the start of the process; Determine the total unit cost in Department X

  What is stewarts year-end basis

What is Stewarts year-end basis in his partnership interest

  What estimate of the company cost of equity

Stock in Daenerys Industries has a beta of 0.86. If the stock sells for $31 per share, what is your best estimate of the company's cost of equity?

  Advantages of a sole proprietorship and a limited liability

Describe the advantages of a sole proprietorship and a limited liability corporation - client choose an LLC or not? Explain your rationale.

  How many inspections per month would the new employee have

The fixed costs of the new employee and automobile would be $3,000 per month. How many inspections per month would the new employee have to perform to earn a profit of $1,500?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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