Reference no: EM132961670
Question - Lincoln Steel Company produces automobile bumpers, sold for $90 per bumper. Cost data are as follows: Materials cost is $42.00, labor cost is $14.00, and allocated overhead is $26.25 per unit.
Each bumper includes one unit of mounting hardware. The mounting hardware has materials cost of $12 and labor cost of $1.60 (these numbers are included in the values provided earlier for the bumper as a whole). Each unit of the mounting hardware takes 0.20 machine hours (12 minutes) to make. All other work for the bumper (attaching the hardware and such) takes 1.55 machine hours (=1 hour 33 minutes) for a total of 1.75 machine hours (1 hour 45 minutes) per bumper including mounting hardware.
Lincoln allocates overhead based on labor cost and estimates that 2/3 of the allocated amount represents fixed manufacturing costs. Defining capacity in terms of machine hours, it estimates that it can make up to 155,000 bumpers per year (including making the mounting hardware).
Indiana automobiles has offered to supply as many units of mounting hardware as needed for $16 per unit.
Suppose that Lincoln is operating at a volume of 120,000 bumpers per year. What is the profit impact of accepting the offer from Indiana Automobiles?
Suppose that Lincoln is operating at a volume of 155,000 units per year and it can sell all the bumpers it makes. Thus, if it accepts the offer from Indiana Automobiles, it can use the freed-up capacity to make and sell additional bumpers. What is the profit impact of accepting the offer from Indiana?
|
What was kingbird retained earnings at the end of the year
: The company recorded revenues of $500000, expenses of $376000, and paid dividends of $43000. What was Kingbird's retained earnings at the end of the year?
|
|
Compute the value of the adjusting journal entry
: Allowance for Bad Debts per T-account has a balance of 1,000. Compute the value of the adjusting journal entry
|
|
What amount should nfpo recognize as revenue for the year
: It is estimated that of the $75,000 outstanding pledges, $71,000 is collectible. What amount should NFPO recognize as revenue for the year?
|
|
Discuss the financial and non-financial measures
: Discuss the financial and non-financial measures that are important in evaluating the fiscal stability/soundness of not-for-profit healthcare organizations.
|
|
What is the profit impact of accepting the offer
: Suppose that Lincoln is operating at a volume of 120,000 bumpers per year. What is the profit impact of accepting the offer from Indiana Automobiles
|
|
What amount must jane invest today
: Jane needs $100,000 in 5 years for a graduate school tuition.What amount must she invest today if the annual interest rate is 12%
|
|
What are the strengths and weaknesses of the npv
: Calculate the Net Present Value of the investment if the discount rate is 18%. An initial investment of $8,320,000 on plant and machinery is expected.
|
|
What is the amount of jane deductible medical expenses
: Jane has AGI of $80,000 and pays for the following: Teeth whitening for her daughter $400. What is the amount of Jane deductible medical expenses
|
|
Which is the opportunity cost of brain attending college
: Which is the opportunity cost of Brain attending college? Brian won a scholarship for four years of college. During these four years
|