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Snyder Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Snyder's products is very competitive. To compete, Snyder must deliver quality service at a low cost. Snyder bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Snyder presents the following data for the years 2021 and 2022. (Click the icon to view the data.) Required (Click the icon to view the additional information.) Requirement 1. Where possible, calculate the amount and cost of unused capacity for (a) software implementation support and (b) software development at the beginning of 2022, based on units of work to be performed in 2022. If you could not calculate the amount and cost of unused capacity, indicate why not. Begin by calculating the amount of unused capacity for each department. Then, calculate the cost. (If it is not possible to calculate the amount or cost of unused capacity, leave the input cells blank.) Amount of Cost of unused capacity unused capacity (a) Software implementation support (b) Software development If you are unable to calculate the amount and cost of unused capacity, indicate why. Data table 2021 2022 1. Units of work performed 85 95 We are unable to calculate the amount and cost of unused capacity for due to the 2. Selling price $ 47,000 $ 45,200 x Requirement 2. Suppose Snyder can add or reduce its software implementation support capacity in increments of 15 units. What is the maximum amount of costs that Sn Begin by selecting the formula you will use. Then, enter the amounts and calculate the maximum cost the company can save. (Enter an amount for each input cell including Maximum costs saved by downsizing 3. Software implementation labour-hours 31,000 32,500 4. Cost per software implementation labour-hour $ 65 $ 68 5. Software implementation support capacity (units of work) 105 105 6. Total cost of software implementation support $ X 7. Software implementation support capacity cost per unit of work $ 399,000 $ 3,800 $ 409,500 3,900 Requirement 3. Snyder, in fact, does not eliminate any of its unused software implementation support capacity. Why might Snyder not downsize? Select the three statements that would explain why Snyder might not downsize. A. Snyder may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity. B. Snyder may choose not to downsize because competitors will view downsizing as a sign of weakness. C. Snyder may have decided not to downsize because downsizing requires a significant reduction in capacity. For example, Snyder may have chosen to downsize sor D. Snyder may have decided not to downsize to boost employee morale and keep employees more motivated and productive. 8. Number of employees doing software development 3 3 9. Total software development costs $ 10. Software development cost per employee $ 435,000 $ 145,000 $ 444,000 148,000 - Snyder Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Snyder's products is very competitive. To compete, Snyder must deliver quality service at a low cost. Snyder bills clients in terms of units of work performed, which depends on the size and complexity of the sales management system. Snyder presents the following data for the years 2021 and 2022. (Click the icon to view the data.) Required (Click the icon to view the additional information.) Requirement 1. Where possible, calculate the amount and cost of unused capacity for (a) software implementation support and (b) software development at the beginning of 2022, based on units of work to be performed in 2022. If you could not calculate the amount and cost of unused capacity, indicate why not. Begin by calculating the amount of unused capacity for each department. Then, calculate the cost. (If it is not possible to calculate the amount or cost of unused capacity, leave the input cells blank.) Amount of Cost of unused capacity unused capacity (a) Software implementation support (b) Software development If you are unable to calculate the amount and cost of unused capacity, indicate why. Data table 2021 2022 1. Units of work performed 85 95 We are unable to calculate the amount and cost of unused capacity for due to the 2. Selling price $ 47,000 $ 45,200 x Requirement 2. Suppose Snyder can add or reduce its software implementation support capacity in increments of 15 units. What is the maximum amount of costs that Sn Begin by selecting the formula you will use. Then, enter the amounts and calculate the maximum cost the company can save. (Enter an amount for each input cell including Maximum costs saved by downsizing 3. Software implementation labour-hours 31,000 32,500 4. Cost per software implementation labour-hour $ 65 $ 68 5. Software implementation support capacity (units of work) 105 105 6. Total cost of software implementation support $ X 7. Software implementation support capacity cost per unit of work $ 399,000 $ 3,800 $ 409,500 3,900 Requirement 3. Snyder, in fact, does not eliminate any of its unused software implementation support capacity. Why might Snyder not downsize? Select the three statements that would explain why Snyder might not downsize. A. Snyder may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity. B. Snyder may choose not to downsize because competitors will view downsizing as a sign of weakness. C. Snyder may have decided not to downsize because downsizing requires a significant reduction in capacity. For example, Snyder may have chosen to downsize sor D. Snyder may have decided not to downsize to boost employee morale and keep employees more motivated and productive. 8. Number of employees doing software development 3 3 9. Total software development costs $ 10. Software development cost per employee $ 435,000 $ 145,000 $ 444,000 148,000 -
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Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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