Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to...
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Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 160 vehicles per month. Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,064,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,700 per Surfer; Tires, $110 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $50,000 501-1,000 tires $95,000 more than 1,000 tires $250,000 Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? 2. Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. How does the concept of relevant range relate to your graphs? Explain. 3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 225 vehicles? How do you explain the difference in the manufacturing cost per unit? Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 160 vehicles per month. Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,064,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,700 per Surfer; Tires, $110 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $50,000 501-1,000 tires $95,000 more than 1,000 tires $250,000 Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? 2. Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. How does the concept of relevant range relate to your graphs? Explain. 3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 225 vehicles? How do you explain the difference in the manufacturing cost per unit? Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 160 vehicles per month. Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,064,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,700 per Surfer; Tires, $110 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $50,000 501-1,000 tires $95,000 more than 1,000 tires $250,000 Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? 2. Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. How does the concept of relevant range relate to your graphs? Explain. 3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 225 vehicles? How do you explain the difference in the manufacturing cost per unit? Blended Motors specializes in producing one specialty vehicle. It is called Surfer and is styled to easily fit multiple surfboards in its back area and top-mounted storage racks. Blended has the following manufacturing costs: (Click the icon to view the manufacturing costs.) Blended currently produces 160 vehicles per month. Plant management costs, $1,992,000 per year Cost of leasing equipment, $2,064,000 per year Workers' wages, $800 per Surfer vehicle produced Direct materials costs: Steel, $1,700 per Surfer; Tires, $110 per tire, each Surfer takes 5 tires (one spare) City license, which is charged monthly based on the number of tires used in production: 0-500 tires $50,000 501-1,000 tires $95,000 more than 1,000 tires $250,000 Requirements 1. What is the variable manufacturing cost per vehicle? What is the fixed manufacturing cost per month? 2. Plot a graph for the variable manufacturing costs and a second for the fixed manufacturing costs per month. How does the concept of relevant range relate to your graphs? Explain. 3. What is the total manufacturing cost of each vehicle if 100 vehicles are produced each month? 225 vehicles? How do you explain the difference in the manufacturing cost per unit?
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Answer rating: 100% (QA)
Answer Explanation Ques 1 Variable mfr cost per vehicle Steel 1700 Tires 550 Labor 800 total 3050 Fi... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Posted Date:
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