Rundle Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rundle Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of the year (during which Rundle made 71,000 tennis racquets and 29,200 badminton racquets). Direct Cost Direct materials Direct labor Tennis Racquet (TR) $ 18.10 per unit 33.50 per unit Badminton Racquet (BR) $ 14.60 per unit 26.30 per unit Category Unit level Estimated Cost $ 756,000 Batch level 279,400 Product level Facility level Total 147,500 828,000 $ 2,010,900 Cost Driver Number of inspection hours Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver TR: 14,600 hours; BR: 12,400 hours TR: 85 setups%3B BR: 42 setups TR: 4; BR: 1 TR: 32,000 hours; BR: 37,000 hours Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment. Required a. Compute the cost per unit for each product. b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Cost per Unit Tennis racquet Badminton racquet < Required A Required B > Rundle Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of the year (during which Rundle made 71,000 tennis racquets and 29,200 badminton racquets). Direct Cost Direct materials Direct labor Tennis Racquet (TR) $ 18.10 per unit 33.50 per unit Badminton Racquet (BR) $ 14.60 per unit 26.30 per unit Category Unit level Estimated Cost $ 756,000 Batch level 279,400 Product level Facility level Total 147,500 828,000 $ 2,010,900 Cost Driver Number of inspection hours Number of setups Number of TV commercials Number of machine hours Amount of Cost Driver TR: 14,600 hours; BR: 12,400 hours TR: 85 setups%3B BR: 42 setups TR: 4; BR: 1 TR: 32,000 hours; BR: 37,000 hours Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment. Required a. Compute the cost per unit for each product. b. If management wants to price badminton racquets 30 percent above cost, what price should the company set? Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per unit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Type of Product Cost per Unit Tennis racquet Badminton racquet < Required A Required B >
Expert Answer:
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date:
Students also viewed these accounting questions
-
Morello Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The...
-
Two 20-in. rods AB and DE are connected as shown. Point D is the midpoint of rod AB, and at the instant shown rod DE is horizontal. Knowing that the velocity of point A is 1 ft/s downward, determine...
-
In Example 3 we showed that an appropriate choice of basis could greatly simplify the computation of the values of a sequence of the form Av, A2v, A3v, ( ( ( ( Exercises 1 and 2 require an approach...
-
Dan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments are available to Dan...
-
Tom Bonacci brought his Jeep to Brewer Service Station to investigate a strange noise the vehicle was making. The Jeep was raised up on an automobile lift so that Brewer employee Paul Gebing could...
-
Depreciation ComputationsFive Methods Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2010. It is estimated that it will have a useful life of 10 years, salvage value of $15,000,...
-
Centralized versus Decentralized Database Management Systems"Please respond to the following: Compare and contrast benefits and challenges that exist between centralized database management systems...
-
A multi-loop block diagram is shown in Figure E3.9.The state variables are denoted by x1 and x2. (a) Determine a state variable representation of the closed-loop system where the output is denoted by...
-
Company A enters into a contract on 1 January 2020 with Company B to use their sedan car for 4 years. The contract states the type of car that will be used by Company A. Company B has many cars that...
-
You would like to give your child $100,000 to start a career 25 years from now. How much money must you set aside today for this purpose if you can earn 7.0 percent on your investments?
-
In a diverse workplace, explain how the concepts of cultural awareness, cultural safety, and cultural competence impact the following work roles: HR Manager in a diverse center Educator of the...
-
A 490 Hz tuning fork is placed over a closed pipe. The pipe resonates at a length of 32 cm. What is the speed of the sound in the air in the pipe? m/s
-
Reflect on the supply and demand applications of elasticity. How does elasticity affect you? Share a personal scenario or story about how the elasticity of demand or supply of a market has impacted...
-
Given 7 balls tagged as A, B, C, D, E, F & G. All look identical to each other but only one of these 7 is made of real gold. If you start counting from first and wind back and forth while counting...
-
Suppose you have the following formula=IF (C9+C10>14, C9-C10,C10-C9). If C9 has the value 5 and C10 has the value 2 What result is displayed by the IFformula? A. 7 B. 0 C. 3 D. -3
-
The production budget of Artest Company calls for 80,000 units to be produced. If it takes 30 minutes to make one unit and the direct labor rate is $16 per hour, what is the total budgeted direct...
-
Evaluate \(\mathbf{T} e^{x}\) for the transformation \(\mathbf{T} x=-x\).
-
Show that the real integers \(1,2, \ldots\) do not form a group under the operation of multiplication.
-
Write a product table for the 4-fold rotations of a square about its geometric center. Is this a cyclic group? E: rotate by 0 A: rotate by 90 B: rotate by 180 C: rotate by 270
Study smarter with the SolutionInn App