Starkvegas Inc. manufactures helicopters. It has just comple…
Starkvegas Inc. manufactures helicopters. It has just completed manufacturing the first newly designed helicopter, R2-D2. Manufacturing data follows: Direct Material Cost $124,000 per unit Direct Labor for First Unit 7,200 hours Learning Curve 85% cumulative average time* Direct manufacturing labor cost $25 per direct labor hour Variable manufacturing overhead cost $11 per direct labor hour *for an 85% learning curve, b = -0.234465 What is the total variable cost to produce 8 helicopters?
Read DetailsWhitney Purple Studio is considering replacing its existing…
Whitney Purple Studio is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs. Information about the existing van and the new van follow: Existing van New van Original cost $50,000 $90,000 Annual operating cost $ 17,500 $ 10,000 Accumulated depreciation $ 30,000 — Current salvage value of the existing van $ 22,500 — Remaining life 10 years 10 years Salvage value in 10 years $ 0 $ 0 Annual depreciation $ 2,000 $ 9,000 If Whitney Purple Studio replaces the existing delivery van with the new one, over the next 10 years operating income will ________.
Read DetailsUse the following information to answer the last 6 questions…
Use the following information to answer the last 6 questions: Richey Inc. had the following budget information for 2019: Budgeted Quantity Budgeted Price Direct materials 0.25 pounds $15 per pound Direct labor 0.20 hours $20 per hour In the month of September, Richey Inc. manufactured and sold 10,000 plastic bins. Richey Inc. used 2000 pounds of material costing $31,000 and spent $22,800 on direct labor at an average rate of $19/hour.
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