Chad Davis, C&C Sports' vice president for operations, recently received a sales brochure for a new...

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Chad Davis, C&C Sports' vice president for operations, recently received a sales brochure for a new electric cutting tool. Based on the tool's specifications, Chad believes that C&C Sports could increase the batch size on jersey production to 50 jerseys, up from the current 35 jerseys. While the cutting tool would be used on pants and award jackets as well, other production factors prevent increasing the batch sizes for these products. The new tool would increase annual operating costs by $14,082. Before deciding whether to purchase the cutting tool, Chad wants to know how the new tool will affect the cost of producing the company's three products. Pants Jerseys Jackets Budgeted production 183,500 66,500 18,000 Indirect labor Depreciation Indirect materials Rent Utilities Insurance Other Total Product design Warehousing/ packaging Cutting Sowing Units per Cut per Batch Batch 4 5 50 35 5 Chenille Machine Costs Product Warehousing/ Traceable to Jackets Design $40,000 $ 2,514 Packaging $ 40,000 7,396 110,869 4,092 125,994 $132,600 Total Cost (A) $ 83,889 $170,562 $147,108 $206,820 9 37,512 6,377 $83,889 Total Activity (B) 3 product lines 9,170 batches 56,580 cuts 86,175 direct labor hours 12,297 $170,562 General Total $105,986 $ 211,000 46,184 511,300 110,000 110,000 17,000 58,330 55,000 55,000 14,730 4,285 41,436 3,747 $147,108 $206,820 $292,271 $1,033,250 Cutting Sewing $7,500 $ 15,000 34,696 101,064 135,861 Activity Rate (A) + (B) $27,963 per product line $18.60 per batch $2.60 per cut $2.40 per direct labor hour 41,330 Your answer is correct. Calculate the total annual cost included in the cutting activity cost pool assuming the cutting tool is purchased. Total annual cost 161,190 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate the cost per cut assuming the cutting tool is purchased. Cost per cut 2.84 LINK TO VIDEO LINK TO VIDEO Click if you would like to Show Work for this question: Open Show Work Chad Davis, C&C Sports' vice president for operations, recently received a sales brochure for a new electric cutting tool. Based on the tool's specifications, Chad believes that C&C Sports could increase the batch size on jersey production to 50 jerseys, up from the current 35 jerseys. While the cutting tool would be used on pants and award jackets as well, other production factors prevent increasing the batch sizes for these products. The new tool would increase annual operating costs by $14,082. Before deciding whether to purchase the cutting tool, Chad wants to know how the new tool will affect the cost of producing the company's three products. Pants Jerseys Jackets Budgeted production 183,500 66,500 18,000 Indirect labor Depreciation Indirect materials Rent Utilities Insurance Other Total Product design Warehousing/ packaging Cutting Sowing Units per Cut per Batch Batch 4 5 50 35 5 Chenille Machine Costs Product Warehousing/ Traceable to Jackets Design $40,000 $ 2,514 Packaging $ 40,000 7,396 110,869 4,092 125,994 $132,600 Total Cost (A) $ 83,889 $170,562 $147,108 $206,820 9 37,512 6,377 $83,889 Total Activity (B) 3 product lines 9,170 batches 56,580 cuts 86,175 direct labor hours 12,297 $170,562 General Total $105,986 $ 211,000 46,184 511,300 110,000 110,000 17,000 58,330 55,000 55,000 14,730 4,285 41,436 3,747 $147,108 $206,820 $292,271 $1,033,250 Cutting Sewing $7,500 $ 15,000 34,696 101,064 135,861 Activity Rate (A) + (B) $27,963 per product line $18.60 per batch $2.60 per cut $2.40 per direct labor hour 41,330 Your answer is correct. Calculate the total annual cost included in the cutting activity cost pool assuming the cutting tool is purchased. Total annual cost 161,190 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate the cost per cut assuming the cutting tool is purchased. Cost per cut 2.84 LINK TO VIDEO LINK TO VIDEO Click if you would like to Show Work for this question: Open Show Work

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