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 |
||