Question: Is the solution correct ? Use the following information to answer questions (10-14) Jordan Company is a manufacturer of high quality of children toys, small




Is the solution correct ?
Use the following information to answer questions (10-14) Jordan Company is a manufacturer of high quality of children toys, small and big toys. Setup costs are driven by the number of batches. Equipment and maintenance cost increase with the number of machine-hours, and lease rent is paid per square foot. Capacity of the facility is 30,000 square feet and the company is using only 80% of this capacity. They company records the cost of unused capacity as a separate line item and not as a product cost. Below is the budgeted in formation: Direct materials-small toys Direct materials- big toys Direct manufacturing labor-small toys Direct manufacturing labor-big toys Setup Equipment and maintenance costs Lease rent 437,000 728,700 224,850 219,250 293,000 237,200 448,000 Other information: Number of small toys 72,000 Number of big toys 108,000 Machine hours for small toys 14.000 Machine hours for big toys 15,000 Number of toys per batch (small 180), (big 216). Square footage of production space used is 40% for small toys and 60% for big toys. * 10. The cost per unit of cost driver (rate) for setup: (3 Points) a) 10.1 b) 739.89 c) 325.55 d) 9.76 11. The cost per unit of cost driver (rate) for lease rent: * (3 Points) a) 18.66 b) 14.93 C) 15.44 d) 29.86 12. The cost of unused capacity: * (3 Points) 44,790 12,000 18,000 89,580 13. setup cost for small toys: * (3 Points) a) 58,599 b) 130,220 c) 400 d) 162,775 14. leave rent cost for big toys:* (3 Points) a) 214,992 b) 268,740 c) 18,000 d) 335,880
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