Week 4 Module - _ Total incremental Costs 17,000...

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In In Per D Per In D rance (3000), salary of shop supervisor (60,000), Depreciation on testing and assembly equipment (4000) = 67,000 indirect costs Applied overhead= Activity Rate x Amount of Allocation Base incurred Production line .20 x 1000=200 Inspections 40 x 2 =80 Machine Related 1 x 500 = 500 780 Unit cost = 780 + direct cost 6000 =6.78 per unit for the banners. Lost contribution margin outdoor = 800,000 Lost contribution margin indoor 2,200,000 x 10% = 220,000 Total lost contribution margin 1,020,000 Fixed cost 1,000,000 - 400,000 = 600,000 -420,000 -300,000 Make Buy Direct Material 300,000 Direct Labor 180,000 Viable manu overhead 30,000 Fixed manu overhead 90,000 traceable Purchase outside supplier 720,000 Total Costs 600,000 720,000 Decrease in profits by $120,000 X X Incremental Revenue (14 x 2000) 28,000 Incremental Costs per unit 2000 t’s Direct materials 3.00 6000 Direct labor 2.50 5000 Variable man overhead 1.00 2000 Variable selling & admin 2.00 4000 Fixed costs: Additional cost special order
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Unformatted text preview: _ Total incremental Costs 17,000 Incremental Net Operating Income 11,000 28,000 17,000 = $11,000 Yes, would increase monthly profits by $11,000 X 6,000 X Incremental Revenue 80,000 Less: cost of further processing 70,000 Incremental Profit (Loss) 10,000 Product Y Sales value after further processing 250,000 Less: Sales value @ split off 180,000 Incremental Revenue 70,000 Less: cost of further processing 80,000 Incremental Profit (Loss) -10,000 Product Z Sales value after further processing 150,000 Less: Sales value @ split off 120,000 Incremental Revenue 30,000 Less: cost of further processing 24,000 Incremental Profit (Loss) 6,000 Products X & Z should be processed further, not Product Y X Week 4 Module Question 1 Example question 1 Question 2 Example Important Question 3 Managing Constraints Example for question 3 Question 4 Example question 4 Question 5 Example for question 5 Question 6 Example for question 6...
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This note was uploaded on 04/03/2011 for the course ACCT 346 taught by Professor Jones during the Spring '11 term at DeVry Kansas City.

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Week 4 Module - _ Total incremental Costs 17,000...

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