Recently a new machine used in the production of CD players has become available it is more efficient than the machine currently being used The new machine would reduce the company s variable costs by 20% and leasing it would increase fixed costs by $96 000 per year Compute the break even point in units assuming use of the old machine
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Get PriceThe basic equation for calculating product cost is as follows using the example of the manufacturer given in the figure below $91 200 000 total manufacturing costs ÷ 120 000 units production output = $760 product cost per unit The equation shown above looks pretty straightforward doesn t it
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Get PriceThe measurement of materials like aggregates cement water necessary for preparing different grades of concrete is Batching It is by two processes One is volume and other is weight batching The volume batching is by mixing materials with its volume And weight batching is by the self weight ratio of materials It has ratios according to standard codes Some of the different grades of
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Get PriceIn addition to the methods of costing there are certain techniques of costing which are used along with any of the method These techniques serve the special purpose of managerial control and policy ADVERTISEMENTS Some of the methods of costing are 1 Job Costing 2 Contract Costing 3 Cost Plus Costing 4
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Get PriceThe total expected overhead costs of a manufacturing company are $200 000 The company has 40 000 budgeted direct labor hours for the year and has submitted a bid for a proposed job having View Answer The three basic types of manufacturing costs are direct materials direct labor and manufacturing overhead a True b False View Answer The sum of units transferred out and
Get PriceThe formula to calculate the cost of the machining is the following Machining cost = Hourly cost Cycle time per one piece / Efficiency Total product cost in machine 1 = Raw materials
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Get PriceStep 1 Understanding the Current Conditions The first step in converting a work area into a manufacturing cell is to assess the current work area conditions starting with product and process data For example PQ product type/quantity analysis is used to assess the current product mix
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