What is the percentage change in sales dollars

Assignment Help Cost Accounting
Reference no: EM132975308

Problem - A firm make and sells  surfboards using revolutionary manufacturing processes and materials. The firm sells its surfboards for $110 to its distributors. The surfboards require $32 of foam and fiberglass and 1.0 direct labor hours and annual fixed costs of $475,000. The firm compensates its manufacturing employees at the rate of $25 per hour. The firm also applies variable manufacturing overhead at the rate of 60% of direct labor dollars. If the firm increases the quality of its direct materials, it will experience the following new product costs:

$45 direct materials

80% of the original labor hours

$50,000 more fixed costs

Applied overhead rate of 50% of the direct labor dollars

Required - What is the percentage change in sales dollars required to breakeven if the firm changes to the higher quality materials?

Reference no: EM132975308

Questions Cloud

What is the net profit on job : The amount charged to the customer is calculated to provide a GROSS PROFIT MARGIN of 40%. What is the net profit on Job J6
Which of the five dysfunctions of a team would be greatest : In your opinion, which of the five dysfunctions of a team would be the greatest barrier to virtual team productivity? Defend your answer.
Calculate the total overheads assigned to a gc : A typical GC takes 300 labour hours to complete. Calculate the total overheads assigned to a GC using ABC principles in respect of supervisors costs
Are likely to find jobs that provide the benefits : Would you consider employers who do not offer these benefits? What factors would influence your decision? Are you likely to find jobs that provide the benefits
What is the percentage change in sales dollars : What is the percentage change in sales dollars required to breakeven if the firm changes to the higher quality materials
Analyze hr strategic initiatives of employee and labor : Analyze HR strategic initiatives of employee and labor relations that positively impact organizational effectiveness. The three critical element focus
How much interest expense will stink record : The company sold the bonds at a $102 discount to par. How much interest expense will Stink record over the life of the bond
How the critical success factors apply to the facts : Analyze how the critical success factors (CSFs) apply to the facts of the case study. Develop at least three project risk recommendations based on your analysis
How much would she need to invest today : Rhonda is considering purchasing her dream car at the end of six years. Her bank is paying 0.625% per month, how much would she need to invest today

Reviews

Write a Review

Cost Accounting Questions & Answers

  Which the? weighted-average process-costing method

Which the? weighted-average process-costing method calculates the equivalent units? by? considering only the work done during the current period

  What is the amount of labor cost charged to wip

James worked a total of 186 hours for the month of June. Overtime was due to customer's specifications / order. What is the amount of labor cost charged to WIP?

  Identify two management assertions of the interest expense

Identify two management assertions of the interest expense account that could be misstated, and briefly provide one example of how each assertion

  Parent company statements parent company acquired 90

parent company statements parent company acquired 90 percent of son inc. on january 31 20x2 in exchange for cash. the

  Compute the total overhead applied to production

Compute the total overhead applied to production during May, compute the cost of the ending work in process inventory and compute the cost of jobs completed during May.

  Calculate the company predetermined manufacturing

Calculate the company's predetermined manufacturing overhead rate, assuming the company uses direct labor hours as its allocation base.

  What is the overhead efficiency variance

What is the overhead efficiency variance? Standard quantity of machine hours 3 hours per unit. Budgeted fixed overhead P777,600 per year

  Questionon 1st january 2012 john doeby enterprises acquired

questionon 1st january 2012 john doeby enterprises acquired a 55 interest in bmi inc. bmi. doeby paid for the

  Define manufactures and sells metal replicas of classic cars

Rutkey Collectibles is a small toy company that manufactures and sells metal replicas of classic cars

  Differentiate the three types of cost accounting systems

Differentiate the 3 types of cost accounting systems (job order, process, and hybrid). Include detailed descriptions of each.

  Compute optimum order quantity in units for squash racquets

Order costs for the company amount to P5. The optimum order quantity in units for squash racquets is (rounded to the nearest unit) would be

  Find the fixed overhead budget variance is

A P25,000 unfavorable variable overhead spending variance, and P2,000 total under applied overhead. The fixed overhead budget variance is ?

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