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dfergins
Aug 6, 2006, 03:27 PM
Can anyone please help me with Cost Accounting? I would appreciate it.

CaptainForest
Aug 6, 2006, 07:19 PM
Can anyone please help me with Microbiology? I would appreciate it.

Both your statement and the one I just made are far too vague.

Cost Accounting is a huge topic; do you have a specific question about it?

dfergins
Aug 6, 2006, 10:00 PM
Can anyone please help me with Cost Accounting? I would appreciate it.
Per Unit
Model 9 Model 14
Selling price $100.00 $70.00
Costs
Direct material 28.00 13.00
Direct manufacturing labor 15.00 25.00
Variable manufacturing overhead* 25.00 12.50
Fixed manufacturing overhead* 10.00 5.00
Marketing (all variable) 14.00 10.00
Total cost 92.00 65.50
Operating income $ 8.00 $ 4.50

*Allocated on the basis of machine-hours.

Requirement 1
Model 9 Model 14
Selling price $100.00 $70.00
Variable costs per unit 39.00 12.50
Contribution margin per unit $61.00 $57.50
Relative use of machine hours per unit of product 15.00 25.00
Contribution margin per "machine hour" (relative)


Requirement 2
Which products would be producted? Briefly explain your answer.
I think Model 9 should be produced. The operating income will be higher.