June 3,500 23,950 Using the high-low method, determine the overhead cost equation. Use machine-hours as your cost driver. 4. Question:( TCO 5) Kirkland Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are: Direct materials $ 0.60 Direct manufacturing labor 3.00 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 1.60 Total $ 6.40 Mike Company has offered to sell to Kirkland Company 10,000 units of the part for $ 6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $ 9,000 if Kirkland accepts the offer. In addition, $ 1.00 per unit of fixed manufacturing overhead on the original item would be eliminated. a. What is the relevant per unit cost for the original part? b. Which alternative is best for Kirkland Company? By how much? ========================================= ACCT 434 Week 4 Quiz( New)
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June 3,500 23,950 Using the high-low method, determine the overhead cost equation. Use machine-hours as your cost driver. 4. Question:( TCO 5) Kirkland Company manufactures a part for use in its production of hats. When 10,000 items are produced, the costs per unit are: Direct materials $ 0.60 Direct manufacturing labor 3.00 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 1.60 Total $ 6.40 Mike Company has offered to sell to Kirkland Company 10,000 units of the part for $ 6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $ 9,000 if Kirkland accepts the offer. In addition, $ 1.00 per unit of fixed manufacturing overhead on the original item would be eliminated. a. What is the relevant per unit cost for the original part? b. Which alternative is best for Kirkland Company? By how much? ========================================= ACCT 434 Week 4 Quiz( New)
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1. Question:( TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $ 12 per hour and the rest are salaried employees paid $ 3,000 a month. How would total costs of personnel be classified? Question 2. Question:( TCO 3) For January, the cost components of a picture frame include $ 0.35 for the glass, $ 0.65 for the wooden frame, and $ 0.80 for assembly. The assembly desk and tools cost $ 400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs?