Can someone please answer question 4 for me and explain how you got your answer?
ID: 2538515 • Letter: C
Question
Can someone please answer question 4 for me and explain how you got your answer?
(c) Total cost of 100,000 units completed: $ (d) Total cost of 20,000 units in process at the end of the month: S 3) Just-in-time manufacturing Candycane Co. the production process the product spends in various production activities: is trying to determine how long it takes for one of its products to pass through . The following information was assembled regarding how many days Activity Inspection Storage Assembl Handling Painting Packaging Number of days 12 14 4 (a) Which of the above activities are value-added activities? (b) What is Candycane's total cycle time? (c) Determine Candycane's manufacturing efficiency ratio. 4) Allocating activity cost pools to products Burgandy Corporation makes plastic and wooden picture frames. The company has assigned $107,000 in monthly manufacturing overhead costs to two cost pools as follows: $67,000 to power costs, and $40,000 to production set-up costs. Additional monthly data are provided below: Plastic Wooden Frames Frames Sales revenue Direct materials Direct labor Machine hours Production runs 254,000 $179,000 $101,000 538,360 53,360 $92,720 107,420 17,580 65 59,000 29,000 35 nits produced and sold Power costs are allocated to products using machine hours as an activity base. Set-up costs are allocated to products based on the number of production runs each product line requires (a) Allocate manufacturing overhead from the activity cost pools to each product line. (b) Compare the total per-unit cost of manufacturing plastic frames and wooden frames. (c) On a per-unit basis, which product line appears to be most profitable?Explanation / Answer
PART-1 Power cost pool allocation 107,420 93 percent Machine hours, plastic frames 7,580 7 percent Machine hours,wooden frames 115,000 100 percent Power cost, plastic frames (67000 * 93%) 62,310 Power cost,wooden frames (67000 * 7%) 4,690 Set-up cost pool allocation Production frames, plastic frames (67000 * 93%) 65 65 percent Production frames, wooden frames (67000 * 7%) 35 35 percent Set-up costs, plastic frames (40,000 * 93%) 26,000 Set-up costs, wooden frames (40,000 * 7%) 14,000 PART-2 Direct materials 101,000 38,360 Direct labor 53,360 92,720 Manufacturing overhead 88,310 18,690 Total manufacturing units 242,670 149,770 Units produced and sold 59,000 29,000 Costs per unit 4.11 5.16 PART-3 Total manufacturing units 254,000 179,000 Units produced and sold 59,000 29,000 Selling price per unit 4.31 6.17 Costs per unit 4.11 5.16 Profitability per unit 0.20 1.01 Wooden frames are more profitable