TenAlpina Tool excel assignment 2.xlsx - ACCOUNTING FOR DEC...

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ACCOUQuantitative Analysis - TenARequirement:Using Stanley Kowalchek’s operating costs as your best-guess data about the cost of opeanalysis for each of the two basic business model configurations—the current outsourcQuantitative analysisGiven the Following Data on Yearly Base:Purchase Volume (4000*12)48000Special order Price$ 10.50 Variable Cost per UnitLabor Cost(57500*6)/4000$ 7.19 Cost of titanium alloy bars $ 1.45 Cost of Supplies(110/1000)$ 0.11 Electricity Cost*(H/L method)$ 0.18 Fixed CostsElectricity Cost*(H/L method)$ 20,736.00 Occupancy Cost$ 33,000.00 Depreciation$ 14,355.00 Administrative Cost(600*12)$ 7,200.00 Electricity Cost Using High-Low methodVariable rate per Unit:high point Cost - Low point Costhigh point Output - Low point Output1962-1908=0.181300-1000Fixed Cost:Total Cost at high point-(Variable rate *Output at high point)
1962-(0.18*1300)=1728Course of Action 1IF Exclusive supplier arrangement is accepted and "Forge" Company is bouAnnual Sales (48000*10.5)$ 504,000 100%Less: Variable Cost (annual):Cost of titanium alloy bars (48000*1.45)$ 69,600 Cost of Supplies(48000*.11)$ 5,280.00 Electricity Cost(48000*.18)$ 8,640.00 Variable Cost Total$

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