The dairy Nature Milk Inc. produces skimmed milk and butter. The sales prices of the two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The dairy Nature Milk Inc. produces skimmed milk and butter. The sales prices of the two products are 10 DKK/kilo for skimmed milk and 50 DKK/kilo for butter. The dairy only has the following three costs: 1. The dairy pays the farmers 2,000 DKK/ton raw milk produced for the dairy 2. The dairy has a cost of 1,500 DKK/ton raw milk processed (manufactured) 3. The dairy uses an external company for transportation of raw milk. The external company is paid on a monthly basis depending on the total transported ton of raw milk per day: 1,200,000 DKK/month if total ton is between 0 and 499 per day 2,400,000 DKK/month if total ton is between 500 and 999 per day 3,600,000 DKK/month if total ton is between 1,000 and 1,499 per day Etc. The transportation cost is considered a fixed cost in dairy. The dairy is currently producing and transporting 1,300 tons per day, and there are 20 work days per month. Processing one ton of raw milk results in 950 kilos of skimmed milk and 50 kilos of butter. Exercise 1.1 Variable Costs Determine the variable cost of buying and processing one ton of raw milk. Exercise 1.2 Fixed Costs Determine the current fixed cost per month. Determine the current fixed cost per ton of raw milk transported and processed. The dairy Nature Milk Inc. produces skimmed milk and butter. The sales prices of the two products are 10 DKK/kilo for skimmed milk and 50 DKK/kilo for butter. The dairy only has the following three costs: 1. The dairy pays the farmers 2,000 DKK/ton raw milk produced for the dairy 2. The dairy has a cost of 1,500 DKK/ton raw milk processed (manufactured) 3. The dairy uses an external company for transportation of raw milk. The external company is paid on a monthly basis depending on the total transported ton of raw milk per day: 1,200,000 DKK/month if total ton is between 0 and 499 per day 2,400,000 DKK/month if total ton is between 500 and 999 per day 3,600,000 DKK/month if total ton is between 1,000 and 1,499 per day Etc. The transportation cost is considered a fixed cost in dairy. The dairy is currently producing and transporting 1,300 tons per day, and there are 20 work days per month. Processing one ton of raw milk results in 950 kilos of skimmed milk and 50 kilos of butter. Exercise 1.1 Variable Costs Determine the variable cost of buying and processing one ton of raw milk. Exercise 1.2 Fixed Costs Determine the current fixed cost per month. Determine the current fixed cost per ton of raw milk transported and processed.
Expert Answer:
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Posted Date:
Students also viewed these accounting questions
-
Henry,who earned $115,920 during 2019, is paid on a monthly basis, is married, and claims four allowances. Use the percentage method table in the Appendix to this chapter. a. What is Henrys federal...
-
Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,088. Federal Insurance Contributions Act (FICA) tax for Social Security is 6.2% on the...
-
A company produces two products that are processed on two assembly lines. Assembly line 1 has 100 available hours, and assembly line 2 has 42 available hours. Each product requires 10 hours of...
-
On the income statement for the year ending December 31, Y1, the accountant for ABC calculated operating income before taxes of $300,000. This $300,000 did not include the effect of any of the...
-
Refer to Exhibit 10.11 on page 369. How does percentage of positions filled from within the company measure worker involvement and commitment?
-
A bottle rocket is launched straight up and burns fuel for 1.6 seconds. After it runs out of fuel, it continues moving up to a maximum height of 80 m above its starting height. Determine the...
-
The Wide World of Fluids article "At 12,600 mpg It Doesn't Cost Much to 'Fill 'er Up,"'. (a) Determine the power it takes to overcome aerodynamic drag on a small \(\left(6 \mathrm{ft}^{2} ight.\)...
-
The following selected transactions were taken from the records of Shaw Company for the first year of its operations ending December 31, 2008: Jan. 31. Wrote off account of B. Roberts, $2,400. Mar....
-
The MPL in the coffee industry in China is 5 and in the rice industry is 10. The MPL in the coffee industry in Italy is 3 and in the rice industry is 9. China has 1,000 workers while Italy has 1,500...
-
(Liberatore and Miller, 1985) A manufacturing facility uses two production lines to produce three products over the next 6 months. Backlogged demand is not allowed. However, a product may be...
-
Ground resonance is a potentially dangerous instability associated with rotary wing aircraft on flexible supports (landing gear). When the aircraft's rotor blades are disturbed to the point that the...
-
Compute for each loan 1 2 WN 3 4 5 L.O 6 7 00 8 9 Payment over term of loan Nominal Interest Rate Effective Interest Rate - held to term Effective Interest Rate - held through holding period Loan...
-
The 85kg gymnast below is in static equilibrium, approximately how much force must he exert against each ring to remain here considering the line of action of the forces? 10 PICS BOEDI 10
-
Business Analytics Inventory Model Barilla Pasta Case Background (This case was taken from an article that appears in The Economist Nov. 2020) Barilla Pasta is the largest pasta maker in the world....
-
171. In hardy-weinberg equation, the frequency of all homozygous individuals is represented by. (1) p (3) 2pq (2) q (4) p+q 172. Excess use of herbicides, Pesticides has only resulted in selection of...
-
Hiring Ethics: A Case of Undue Influence in Employee Selection Case Author: Salvador G. Villegas & Kristi M. Bockorny Online Pub Date: January 03, 2022 | Original Pub. Date: 2020 Subject: Business...
-
Make the trial balance. B. Prepare the income statement. C. Prepare the statement of owner equity. D. Prepare the balance sheet. At Camino Real, Inc. the account balances are as follows: Account Cash...
-
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):...
-
Describe three ways to improve the performance of a bottleneck operation.
-
Describe how flexible-budget variance analysis can be used in the control of costs of activity areas?
-
Ethics and quality. Wainwright Corporation manufactures auto parts for two leading Japanese automakers. Nancy Evans is the management accountant for one of Wainwrights largest manufacturing plants....
-
What are a manager's resources?
-
What are the three levels of management?
-
Joe Maddon has been the manager of the Chicago Cubs since 2015. In his first year, he exceeded the expectations of most analysts and fans by leading the team to an appearance in the National League...
Study smarter with the SolutionInn App