A mixing plant having a capacity of 50 cu. m. every hour costs P2,500,000. It is estimated to process 800,000 cu. m. during its life. During a certain year it processed 60,000 cu. m. If its scrap value is P100,000, determine the total depreciation cost chargeable to each batch of 50 cu. m. using Service-Output-Method.
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- Equipment costing P1M is expected to produce 10,000 pieces of pipes during its economic life before being replaced. Annual production of this equipment is 2,500 pipes. The equipment's scrap value is estimated at P50,000. The cost of housing the equipment is P25,000 per year. Costs of power and maintenahce per unit are P9.00 and P7.00, respectively. Cost of labor is P35.00 per unit. Use sinking fund method of depreciation with j=12%. What is the total fixed cost per unit? O P168.98 O P137.51 O P114.76 O P121.87Question: A piece of machinery has a cost basis of $45,000. Its salvage value will be $5000 after 10,000 hours of operation. With units-of-production depreciation, what is the allowable depreciation rate per hour? What is the book value after 4,000 hours of operation? Suggestion: Use straight-line on an hourly basis for the rate. Use that rate to determine the BV @ 4,000 hours.7. Equipment costing PIM is expected to produce 10. 000 pieces of pipes dur ing its economic life before being replaced. Annual production of this equipment is 2, 500 pipes. The equi pment' s scrap value is estimated at P50, 000. The cost of housing the equipment is P25, 000 per year. Costs of power and maintenance per unit are P9. 00 and P7. 00, respectively. Cost of labor is P35. 00 per unit. Use sinking fund method of depreciation with = 12% a. What is the total fixed cost? b. What is the variable cost per unit? c. What is the total cost of production per unit?
- Five different methods can be used for recovering by-product heavy metals from a manufacturing site's liquid waste. The investment costs and incomes associated with each method are shown. Assuming all methods have a 10-year life and the company's MARR is 10% per year, determine which one method should be selected using ROR evaluation. method 1 method 2 method 3 method 4 method 5 first cost -15000 -18000 -25000 -35000 -52000 annual income 4000 5000 7000 9000 12000Part P40 is a part used in the production of dehumidifiers at Pollock Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually Fixed costs Variable costs Total cost to produce 25,000 $44,000 $68,000 $112,000 Pollock Corporation can purchase the part from an outside supplier for $4.55 per unit. If they purchase from the outside supplier, 50% of the fixed costs would be avoided. If the company buys the part, what is the most it can spend per unit so that operating income is equal to $97,000? (Round the final answer to the nearest cent.) A. $3.00 B. $3.88 OC. $2.12 D. $1.55A lumber mill bought a shipment of logs for $49,000. When cut, the logs produced a million board feet of lumber in the following grades. Compute the cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. (Do not round your intermediate calculations.) Type 1-600,000 bd. ft. priced to sell at $0.20 per bd. ft. Type 2- 400,000 bd. ft. priced to sell at $0.08 per bd. ft. Type 3- 200,000 bd. ft. priced to sell at $0.04 per bd. ft. Multiple Choice O $24,00o; $24,000. $36,750; $9,800. $32,000; $8,000. $10,944;$2,450. $49,000: $32.000.
- Direction: Solve the following problems completely. For problem 1 and 2, please refer to the given situations. A company plans to manufacture a product and sell it for $3.00 per unit. Equipment to manufacture the product will cost $250,000 and will have a net salvage value of $12,000 at the end of its estimated economic life of 15 years. The equipment can manufacture up to 2,000,000 units per year. Direct labor costs are $0.25 per unit, direct material costs are $0.85 per unit, variable administrative and selling expenses are $0.25 per unit, and fixed overhead costs are $200,000, not including depreciation. Direction: Solve the following problems completely. Problem 1. If capital investments and return on the investment are excluded, what is the number of units that the company must manufacture and sell in order to break even with all other costs? Problem 2. If straight-line depreciation is used, what is the number of units that the company must manufacture and sell to yield a…i need to find the average cost per unit? if : the machine to produce the units cost $400,000 the monthly operating and maintenance cost is: $1,000 cost of material and labour is: $60/unit defective unit at a cost: $60/unit nominal production of: 2,800 units/month nominal defect rate: 3% MARR is 10% compounded monthly period of time 5 yearsThe Maria Company estimated its factory overhead of the next period at P160,000. It is estimated that 40,000 units will be produced at a materials cost of P200,000. Production will require 40,000 man-hours at an estimated wage cost of P80,000. The machines will run about 25,000 hours. How much is the Machine Depreciation Cost Driver rate?
- A MAN MANAGEMENT OF AN INDUSTRIAL COMPANY WANTS TO BE SURE ON THEIR DECISION OF BUILDING A NEW PLANT IN TWO DIFFERENT ALTERNATIVE LOCATIONS WITH COST PARAMETERS AS FOLLOWS: COST ITEMS LOCATION 1 LOCATION 2 PLANT COST P2,250,000.00 P100,000.00 P2,000,000.00 P120,000.00 LABOR/YEAR OVERHEAD/YEAR P55,000.00 3% OF FIRST COST P40,000.00 5% OF FIRST COST 20% TAXES AND INSURANCE WORTH OF MONEY 20% CAPITAL RECOVERY 10 ΥEARS 10 YEARS IF THE COST OF RAW MATERIALS IS THE SAME FOR BOTH PLANT, WHICH LOẠCTION IS BETTER, USING ANNUAL WORTH METHOD? WHY?A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year. (a) Use ROR evaluation to determine which should be selected. (b) Confirm the selection using the regular AW method at MARR = 10% per year. Storage Bin P Q First cost, $ −18,000 −35,000 AOC, $ per year −4000 −3600 Salvage value, $ 1000 2700 Life, years 3 65.Arthur Corp. manufactures liquid chemicals A and B from a joint process. Joint costs are allocated on the basis of relative market value at split-off. It costs P4,560 to process 500 gallons of Product A and 1,000 gallons of Product B to the split-off point. The market value at split-off is P10 per gallon for Product A and P14 for Product B. Product B requires an additional process beyond split-off at a cost of P2 per gallon before it can be sold. What is Arthur's cost to produce 1,000 gallons of Product B? 6.The portion of joint cost allocated to Product A is