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Problem - Ford Company manufactures a part for its production cycle. The costs per unit for 36 10,000 units of the part are as follows:
Direct materials $20.00
Direct labor 15.00
Variable factory overhead 16.00
Fixed factory overhead 15.00
Total costs $66.00
The fixed factory overhead costs are unavoidable. Assuming no other use for the facilities, what is the highest price that Ford Company should be willing to pay for the part?
Sunshine Oil Company buys crude vegetable oil. Processing this oil results in four products at the split off points: A, B, C, and D. Product C is fully processed at the split off point.
Beginning inventory for this material is 26,400 kg and the cost per kg is $9. What is the budgeted materials purchases cost for the first quarter?
Calculate the total profit or loss StradiCrazy and DrumOn using ABC costing. Clearly show your workings
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A costing system used in situations where a single, homogenous product (such as cement or flour) is produced for long periods of time.
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Using the above information, calculate the performance measure that potentially creates the under-investment problem
Fixed manufacturing overhead per unit ($334,320 ÷ 2,800 units) 119.40. Complete absorption costing income statement for Presidio
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