Jolsan Technologies had received a contract to produce two units of a new cruise missile guidance control. The first unit took 5,000 hours to complete and cost $30,000 in materials and equipment usage. The second took 4,500 hours and cost $24,000 in materials and equipment usage. Labor cost is charged at $20 per hour. The prime contractor has now approached Jolsan Technologies and asked to submit a bid for the cost of producing another 20 guidance controls. Use Exhibit 6.4 and Exhibit 6.5. What will the last unit cost to build

Answers

Answer 1
Answer:

Answer:

$73,600

Explanation:

A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph

The last unit will be 22nd unit .

Using learning curve table ,

Time required to build 22nd unit = 3125.49 hours

labour cost to build 22nd unit (  $20 per hour ) = $20 x $3125.49

labour cost to build 22nd unit = $62509.80

Using learning curve table ,

material and equipment cost to build 22nd unit = $11090.67

Therefore,

total cost to build the last unit = Labour cost + Material and equipment cost  total cost to build the last unit = $62509.80 + $11090.67

total cost to build the last unit = $73600.47

Learning rate for labour hours ( L1) = Time for 2nd unit / Time for 1st unit

Learning rate for labour hours ( L1) = 4500/5000

Learning rate for labour hours ( L1) = 0.90

Learning rate for material and equipment usage

Learning rate for material and equipment usage  = Material and equipment cost for 2nd item / Material and equipment cost for 1st item

Learning rate for material and equipment usage  = 24000/30000

Learning rate for material and equipment usage  = 0.80 or 80 %  


Related Questions

Local Co. has sales of $ 10.7 million and cost of sales of $ 5.9 million. Its​ selling, general and administrative expenses are $ 550 comma 000 and its research and development is $ 1.2 million. It has annual depreciation charges of $ 1.4 million and a tax rate of 35 %. a. What is​ Local's gross​ margin? b. What is​ Local's operating​ margin? c. What is​ Local's net profit​ margin?
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The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $17,000 cash. Purchase prepaid insurance to protect musical equipment over the next year for $4,200 cash. Purchase musical equipment for $20,000 cash. Obtain a loan from a bank by signing a note for $30,000.Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
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A contingent deferred sales charge is commonly called a ____.

What are other roles of business in the economy?​

Answers

Answer:

i hope it helps u :)

Explanation:

In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs.

Answer:

Explanation:

In any market economy, business plays a huge role. Business is the engine of an economy. Business provides jobs that allow people to make money and goods and services that people can buy with the money they make. ... Most businesses provide people with jobs

Vacation Pay and Pension Benefits Regling Company provides its employees vacation benefits and a defined benefit pension plan. Employees earned vacation pay of $40,000 for the period. The pension formula calculated a pension cost of $222,750. Only $185,000 was contributed to the pension plan administrator. (a) Provide the journal entry for the vacation pay. If an amount box does not require an entry, leave it blank. (b) Provide the journal entry for the pension benefit. If an amount box does not require an entry, leave it blank.

Answers

Answer and Explanation:

According to the scenario, journal entry for the given data are as follows:

(a).

Vacation Pay Expenses A/c Dr. $40,000  

To Vacation Pay Payable A/c. $40,000

(Being vacation pay for the period is recorded)

(b).

Pension Expenses A/c Dr. $222,750  

To Cash A/c. $185,000

To Unfunded Pension Liabilities A/c $37,750     ( $225,750 - $185,000)

( Being pension benefit for the period is recorded)

Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Susan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.Megan's opportunity cost of making a pizza is ?
a. 2/3 gallon
b. 5/7 gallon
c. 1 1/2 gallons
d. 1 2/5 gallons
of root beer, and Susan's opportunity cost of making a pizza is ?
a. 2/3 gallon
b. 5/7 gallon
c. 1 1/2 gallons
d. 1 2/5 gallons
of root beer.
Who has an absolute advantage in making pizza, and who has a comparative advantage in making pizza?

Answers

Answer:

  1. a. 2/3 gallon
  2. b. 5/7 gallon

Explanation:

1. Megan takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza.

If she makes a pizza therefore, that is 2 hours that could have been used to make a gallon of root beer. However, it takes 3 hours to make a complete gallon so in those 2 hours only;

= 2/3 gallons would have been made

2. Susan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.

Like Megan above, the 5 hours that would be used for Pizza would have gone towards making a gallon of beer. If it takes 7 hours to make a gallon then those 5 hours would have made;

= 5/7 gallons of root beer.

3. Absolute Advantage: Megan

The person with the absolute advantage is the person that can produce more goods with the same amount of costs. Megan can make more pizza in a smaller amount of time than Susan so she has Absolute advantage.

Comparative Advantage: Megan

The person with a Comparative advantage is the one that has the lowest opportunity cost when producing a good. Megan again has a lower opportunity cost with an opportunity cost of 2/3 gallons.

Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data: Budgeted variable costs per unit: Direct materials $7.00 Direct labor 10.00 Supplies 1.00 Indirect labor 0.50 Power 0.05 Budgeted fixed overhead for 2018: Supervision 4,000 Depreciation 3,000 Rent 2,000 What are the budgeted costs for rent if 5,000 units were produced

Answers

Answer:

$2,000

Explanation:

The cost incurred by an entity during production may be recognized in two groups namely the fixed costs and the variable cost.

While the fixed cost are cost elements that remain constant at a given range of activity levels, the variable cost change as the activity level (that is the units produced) changes.

The rental cost, supervision and depreciation are cost elements that are fixed.

Hence where 5,000 units were produced, budgeted cost for rent is $2,000.

Final answer:

The budgeted cost for rent would remain at $2,000 even if Laramie, Inc. produces 5,000 units. This is because rent falls under fixed costs, which do not vary with the level of production.

Explanation:

The question is asking for the budgeted costs for rent if 5,000 units were produced by Laramie, Inc. Here, it's important to differentiate between variable costs and fixed costs. Variable costs, including labor and raw materials, increase or decrease with output levels; they vary with the number of units produced. Fixed costs, on the other hand, like rent and depreciation, are expenditures that remain constant regardless of the level of production. From the provided data, we can see that the budgeted fixed overhead for rent is $2,000. This cost does not change with the number of units produced. So, even if 5,000 units are produced, the budgeted cost for rent would still be $2,000.

Learn more about Fixed Costs here:

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Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.

Answers

Answer:

Packaging Solutions Corporation

1. Planning Budget

Direct labor                              $68,460

Indirect labor                            $12,500

Utilities                                       $7,200

Supplies                                     $2,980

Equipment depreciation        $28,600

Factory rent                              $8,500

Property taxes                          $2,700

Factory administration           $15,820

2. Flexible Budget

Direct labor                             $65,200

Indirect labor                            $12,100

Utilities                                       $7,100

Supplies                                   $2,900

Equipment depreciation        $28,100

Factory rent                             $8,500

Property taxes                         $2,700

Factory administration          $15,700

3. Spending Variances:

                                                  Flexible  Actual       Spending

                                                  Budget  Budget       Variance

Direct labor                             $65,200  $66,780     $1,580 U

Indirect labor                            $12,100    $11,680       $420 F

Utilities                                       $7,100    $7,590       $490 U

Supplies                                   $2,900     $3,190       $290 U

Equipment depreciation        $28,100  $28,100        $0     None

Factory rent                             $8,500   $8,500        $0     None

Property taxes                         $2,700   $2,700        $0     None

Factory administration          $15,700  $15,050        $650 F

Explanation:

a) Data and Calculations:

Planned labor-hours in March = 4,200

Actual labor-hours in March = 4,000

Cost Formulas

Direct labor $16.30q

Indirect labor $4,100 + $2.00q

Utilities $5,100 + $0.50q

Supplies $1,300 + $0.40q

Equipment depreciation $18,100 + $2.50q

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60q

Actual Cost Incurred In March:

Direct labor                      $ 66,780

Indirect labor                     $ 11,680

Utilities                               $ 7,590

Supplies                             $ 3,190

Equipment depreciation $ 28,100

Factory rent                      $ 8,900

Property taxes                  $ 2,700

Factory administration   $ 15,050

Flexible Budget:

Direct labor $16.30 * 4,000 = $65,200

Indirect labor $4,100 + $2.00  * 4,000 = $12,100

Utilities $5,100 + $0.50 * 4,000 = $7,100

Supplies $1,300 + $0.40 * 4,000 = $2,900

Equipment depreciation $18,100 + $2.50 * 4,000 = $28,100

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,000 = $15,700

Planning Budget

Direct labor $16.30 * 4,200 = $68,460

Indirect labor $4,100 + $2.00 * 4,200 = $12,500

Utilities $5,100 + $0.50 * 4,200 $7,200

Supplies $1,300 + $0.40 * 4,200 $2,980

Equipment depreciation $18,100 + $2.50 * 4,200 = $28,600

Factory rent $8,500

Property taxes $2,700

Factory administration $13,300 + $0.60 * 4,200 = $15,820

Final answer:

The problem involves calculating the planning budget, flexible budget, and spending variances for the Production Department of Packaging Solutions Corporation. The planning budget is based on the expected output, the flexible budget adjusts according to actual results, and the spending variances give the difference between budgeted and actual costs.

Explanation:

The question falls under the field of cost accounting in Business studies. Here, we'll need to calculate the planning budget, the flexible budget, and the spending variances for the Production Department of Packaging Solutions Corp.

1. Planning Budget: The planning budget is based on the expected labor-hours and the production output associated with those labor-hours. In this case, the planned labor hours were 4,200.

2. Flexible Budget:

The flexible budget adjusts the planning budget to reflect actual operational results. The actual hours worked in March were 4,000, which is what we'll use for the flexible budget calculations.

3. Spending Variances:

Spending variances are the differences between what was budgeted (either in the planning budget or the flexible budget) and actual results. They can be calculated by subtracting the actual costs from the budgeted costs. This will provide insights into areas where spending was over or under the budgeted amounts.

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3. Set the most important five goals in your life in the coming two years. ​

Answers

This is more like a do it on your own kind of question. One thing for sure is that you would want to be financially stable and still keep going to school to study something