The Johnson Corporation manufactures cellular modems and routers in twa divislans. The company currently manufactures the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Johnson Corporation manufactures cellular modems and routers in twa divislans. The company currently manufactures the drcult board for the modems. The Smith Corporation, a rellable mnaufacturer, has offered to supply droult boards to the modems division in 2018. Cost data is provided below. current year next year 2017 2018 volume ( circuit boards produced) 80,000 93,000 $180.00 DM per ciroult board $61.40 DL per circuit board avoidable fbxed mfg OH per unit if circuit boards are purchased $40.00 unavoidable fbxed mfg OH per unit* $50.00 Ms. Jones, salary of manager of circuit board production $95,000 salary of new manager of production in routers division* $102,000 selling price to Johnson per circuit board $315.00 expected decrease in DM costs in 2018 -2.4% expected increase in DL costs in 2018 3.8% * This OH will be incurred whether the circuit boards are made or purchased. ** The salaries of two production managers must be considered. One is in the current manager in modems division (Ms. Jones), the other in the routers division. The job in the routers division is unfilled at this time. If the circuit boards continue to be manufactured in-house, Ms, Jones will continue in the job at her current salary of $95,000. In that case, the routers division will fill the job opening with a new hire at a salary of $102.000. If the circuit boards are purchased, then Ms. Jones will fill the vacancy in the routers division at the salary for that position, Le., S102,000 (in other words, Ms. Jones will make S7,000 more per yearif the circuit boards are purchased). Furthermore, If the croult boards are purchased, then Johnson can use the facility to make other electronic components. Note that the unavoldable fbed manufacturing costs shown above will continue to be incurred. The accounting Intern provided the details shown below. next year 2018 21,500 #units produced andold $65.25 selling price per unit $8.50 variable costs per unit $50.00 fixed costs per unit (from first data panel) $6.75 gross profit per unit Complete the following template for the make vs buy decision. This must be done on a per unit basis. (1) (12 points) Part 2 for this problem is shown in row 98 make buy points [a) DM [b] DL (d purchase price [d] avoidable fixed mfg cost (e] unavoidable fixed mfg cost In production manager's salary (el sale of other electronic components total per unit cost to make or buy [a] show your work for DM cost 52 53 54 55 56 57 58 [b) show your work for DL cost 59 60 61 62 63 64 [d show your work for avoidable fixed mfg OH 65 66 67 68 69 70 fe] show your work for unavoidable foxed mfg OH 71 72 73 74 75 76 show your work for the production managers salaries 77 Problem i1 The Johnson Corporation manufactures cellular modems and routers in twa divislans. The company currently manufactures the drcult board for the modems. The Smith Corporation, a rellable mnaufacturer, has offered to supply droult boards to the modems division in 2018. Cost data is provided below. current year next year 2017 2018 volume ( circuit boards produced) 80,000 93,000 $180.00 DM per ciroult board $61.40 DL per circuit board avoidable fbxed mfg OH per unit if circuit boards are purchased $40.00 unavoidable fbxed mfg OH per unit* $50.00 Ms. Jones, salary of manager of circuit board production $95,000 salary of new manager of production in routers division* $102,000 selling price to Johnson per circuit board $315.00 expected decrease in DM costs in 2018 -2.4% expected increase in DL costs in 2018 3.8% * This OH will be incurred whether the circuit boards are made or purchased. ** The salaries of two production managers must be considered. One is in the current manager in modems division (Ms. Jones), the other in the routers division. The job in the routers division is unfilled at this time. If the circuit boards continue to be manufactured in-house, Ms, Jones will continue in the job at her current salary of $95,000. In that case, the routers division will fill the job opening with a new hire at a salary of $102.000. If the circuit boards are purchased, then Ms. Jones will fill the vacancy in the routers division at the salary for that position, Le., S102,000 (in other words, Ms. Jones will make S7,000 more per yearif the circuit boards are purchased). Furthermore, If the croult boards are purchased, then Johnson can use the facility to make other electronic components. Note that the unavoldable fbed manufacturing costs shown above will continue to be incurred. The accounting Intern provided the details shown below. next year 2018 21,500 #units produced andold $65.25 selling price per unit $8.50 variable costs per unit $50.00 fixed costs per unit (from first data panel) $6.75 gross profit per unit Complete the following template for the make vs buy decision. This must be done on a per unit basis. (1) (12 points) Part 2 for this problem is shown in row 98 make buy points [a) DM [b] DL (d purchase price [d] avoidable fixed mfg cost (e] unavoidable fixed mfg cost In production manager's salary (el sale of other electronic components total per unit cost to make or buy [a] show your work for DM cost 52 53 54 55 56 57 58 [b) show your work for DL cost 59 60 61 62 63 64 [d show your work for avoidable fixed mfg OH 65 66 67 68 69 70 fe] show your work for unavoidable foxed mfg OH 71 72 73 74 75 76 show your work for the production managers salaries 77 Problem i1
Expert Answer:
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these chemistry questions
-
Operation Warp Speed was a U.S. government program at the start of COVID-19 that offered -$18 billion in research subsidies to pharmaceutical companies developing the COVID-19 vaccine. Once the...
-
B D E H K First in, First out, FIFO 3 PURCHASES SALES STOCK BALANCE AT THE END month action units CPU total unit 4 CPU Total Units CPU Total January purchases 100 50 5000 6 February bal purchases 50...
-
ACME Tech inc. Sales (SMillion) Product Line Q1 Q1% of YTD Q2 Q2% of YTD Q3 Q3% of YTD YTD Al 450 550 700 formula Robot 200 formula 150 220 Smart-Sensor 300 250 250 formula Company total...
-
Suggest two reasons why the adjustments proposed by independent auditors more often than not call for reducing recorded earnings.
-
Suppose that ak 0 as k . Prove that a sin(2k + 1)x) !
-
A load of lumber weighing ng W = 25 kN is being raised by a mobile crane. The weight of the boom ABC and the combined weight of the truck and driver are as shown. Determine the reaction at each of...
-
Discuss the importance of the patients responsibility to communicate to the staff any symptoms he or she is experiencing.
-
Dennis Company is an 80%-owned subsidiary of Kay Industries. Dennis Company issued 10-year, 8% bonds in the amount of $1,000,000 on January 1, 2011. The bonds were issued at face value, and interest...
-
So how is loyalty built? What makes you use price as a signal? What is it about price that makes it a cue for us and how does it relate to brand ?
-
Baer Belly Bikinis, Inc. (BBB) is a small business located in Santa Monica, California. It sells swimwear and related products to specialty stores throughout the United States. It also sells its...
-
You have a $2,150balance on your15%credit card. You have lost your job and been unemployed for6months. You have been unable to make any payments on your balance. However, you received a tax refund...
-
3 WRITING TASK 2 You should spend about 40 minutes on this task. Write about the following topic: Nowadays, in spite of wage and salary increases, a lot of single people and families are struggling...
-
ARTICLE...
-
Company ABC is experiencing challenges in its human resource planning due to a lack of alignment between workforce needs and available skills. Identify the key issues and provide recommendations to...
-
Which question is not a good survey question? A. Don't you agree that the financial crisis is essentially over? B. On average, how many hours do you sleep per day? C. What is your opinion of...
-
I would tell Jenny's parents that they absolutely have the right to sue and should sue William, the wonder of the bar in downtown New Orleans, LA. To start, I would bring up a case of extreme...
-
Explain the different types of financial statements simply? Explain all types briefly
-
$10,000 was borrowed at 3.5% on July 17. The borrower repaid $5000 on August 12, and $2000 on September 18. What final payment is required on November 12 to fully repay the loan?
-
To generate needed foreign exchange, the Cuban government entered into a joint venture with Domingo Cigars of Spain. The joint venture manufactures Domingo Cigars in Cuba using Cuban tobacco and...
-
Turow Trailers assembles horse trailers. Two models are manufactured: G7 and V8. While laborintensive, the production process is not very complicated. The single plant produces all the trailers with...
-
Dr. Madison, inventor and owner of Madison Corrosion Treatment, has discovered that ordinary mufflers and pipes, when treated with his patented process, will become permanently impervious to...
-
If, during a stride, the stretch causes her center of mass to lower by \(10 \mathrm{~mm}\), what is the stored energy? A. \(3.0 \mathrm{~J}\) B. \(6.0 \mathrm{~J}\) C. \(9.0 \mathrm{~J}\) D. \(12...
-
A \(1.00 \mathrm{~kg}\) block is attached to a horizontal spring with spring INT constant \(2500 \mathrm{~N} / \mathrm{m}\). The block is at rest on a frictionless surface. A \(10.0 \mathrm{~g}\)...
-
We can make a static measurement to deduce the spring constant to use in the model. If a \(61 \mathrm{~kg}\) woman stands on a low wall with her full weight on the ball of one foot and the heel free...
Study smarter with the SolutionInn App