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  • Aug 6, 2006, 03:27 PM
    dfergins
    Cost Accounting
    Can anyone please help me with Cost Accounting? I would appreciate it.
  • Aug 6, 2006, 07:19 PM
    CaptainForest
    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?
  • Aug 6, 2006, 10:00 PM
    dfergins
    Quote:

    Originally Posted by dfergins
    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.

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