FarNorth - Solutions Guide: Please do not present as your...

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Unformatted text preview: Solutions Guide: Please do not present as your own. I sometimes post solutions that are totally mine, from the book’s solutions manual, or a mix of my work and the books solutions manual. But this is only meant as a solutions guide for you to answer the problem on your own. I recommend doing this with any content you buy online whether from me or from someone else. Far North Telecom, Ltd., of Ontario, has organized a new division to manufacture and sell specialty cellular telephones. The division’s monthly costs are shown in the table below. Far North Telecom regards XXX XX its workers as full-time employees and the company has a long-standing no layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The cellular phones sell for $150 each. During September, the first month of operations, the following activity was recorded: 12,000 units produced, 10,000 units sold. Comment on the five questions below the table. Respond to at least two of your fellow students’ postings. Manufacturing costs: Variable costs per unit: Direct Materials $48 Variable manufacturing overhead $2 Fixed manufacturing overhead costs (total) $360,000 Selling and administration costs: Variable 12% of sales Fixed (total) $470,000...
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This note was uploaded on 12/12/2011 for the course ECONOMIC acc 101 taught by Professor Xyz during the Spring '11 term at University of Phoenix.

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FarNorth - Solutions Guide: Please do not present as your...

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