250_Hwk_Chapter_6C

250_Hwk_Chapter_6C - ACCT 250 HOMEWORK CHAPTER 6C P6-52...

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ACCT 250 HOMEWORK CHAPTER 6C c27902c20d358df454721395c1c9350334ac3cc7.xls PAGE 1 OF 4 P6-52 Average Total Incremental Complexes Time Time Time 1 17.0 17.0 N/A 2 13.6 27.2 10.2 4 10.9 43.5 16.3 8 8.7 69.6 26.1 Learning rate 80% Time for last four complexes 26.1 Divide by number of complexes 4 Time per complex 6.5 Yes, they reached their goal; the last four complexes were completed in approximately 6.5 hours each. P6-53 Total overhead 8,000 Divide by: Average monthly hats 800 Overhead per hat 10.00 Hours for first 100 hats 25 Times: Hourly rate 15 Total Direct labor 375 Divide by: Number of hats 100 Direct labor per unit 3.75 Other Direct costs 16.25 Average overhead 10.00 Total cost per hat 30.00 Times: Markup 125% Selling price 37.50 Average Total Hats Time Time Cost 100 0.25 200 0.21 400 0.18 800 0.15 1,600 0.13 208.8 3,132 Learning rate 85% Direct labor 3,132 Other Direct costs 26,000 Overhead 16,000 Total 45,132 Divide by: Number of hats 1,600 Cost per hat 28.21 Based upon total cost, no, the order should not be accepted. It can be argued that the firm should consider accepting the offer on the basis that the price exceeds variable costs ($18.21)
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ACCT 250 HOMEWORK CHAPTER 6C
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250_Hwk_Chapter_6C - ACCT 250 HOMEWORK CHAPTER 6C P6-52...

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