a . machine maintenance | |||
b . machine setup | |||
c . quality control material ordering | |||
d . production scheduling | |||
e . warehouse expense | |||
f . engineering design | |||
Question 2 . Question : ( TCO 2 ) Lubriderm Corporation has the | |||
following budgeted sales for the next six-month period : | |||
Month |
Unit Sales |
||
There were 30,000 units of finished goods in inventory at the | |||
beginning of June . Plans are to have an inventory of finished | |||
products that equal 20 % of the unit sales for the next month . | |||
Five pounds of materials are required for each unit produced . Each | |||
pound of material costs $ 8 . Inventory levels for materials are equal | |||
to 30 % of the needs for the next month . Materials inventory on June | |||
1 was 15,000 pounds . | |||
Prepare production budgets in units for July , August , and September . | |||
Question 3 . Question : ( TCO 3 ) As part of his job as cost analyst , | |||
Max Thompson collected the following information concerning the | |||
operations of the Machining Department : | |||
Observation |
Machine-hours |
Total Operating Costs |
|
January |
4,000 |
$ 45,000 |
|
February |
4,600 |
49,500 |
|
March |
3,800 |
45,750 |
|
April |
4,400 |
48,000 |
|
May |
4,500 |
49,800 |
|
Use the high-low method to determine the estimating cost function | |||
with machine-hours as the cost driver . | |||
Question 4 . Question : ( TCO 5 ) Lewis Auto Company manufactures a | |||
part for use in its production of automobiles . When 10,000 items are | |||
produced , the costs per unit are : | |||
Direct materials |
$ 12 |
||
Direct manufacturing labor |
60 |
||
Variable manufacturing overhead |
24 |
||
Fixed manufacturing overhead |
32 |
||
Total |
$ 128 |
||