Stanton Company is planning to produce 1,100 units of product in 2012. Each unit requires 1.30 pounds of materials costing $4.00 per pound and half an hour of labor costing $14.20 per hour. Overhead is 50% of direct labor. Direct materials will cost $, direct labor will cost $, and overhead will cost $. The standard cost per unit is $XX.XX.

1. Question 2
Stanton Company is planning to produce 1,100 units of product
in 2012. Each unit requires 1.30 pounds of materials at
$4.00 per pound and a half-hour of labor at $14.20 per hour.
The overhead rate is 50% of direct labor.
(a) Compute the budgeted amounts for 2012 for direct materials
to be used, direct labor, and applied overhead.
Direct materials
$
Direct labor
$
Overhead
$
(b) Compute the standard cost of one unit of product. (Round
answer to 2 decimal places, e.g. 2.75.)
Standard cost
$
Question 3
In Harley Company it costs $32 per unit ($17 variable and
$15 fixed) to make a product that normally sells for $52. A
foreign wholesaler offers to buy 3,690 units at $25 each. Harley
will incur special shipping costs of $2 per unit. Assuming that
Harley has excess operating capacity.
Indicate the net income (loss) Harley would realize by accepting

2. the special order. (If an amount reduces the net income for
Increase (Decrease) column then enter with a negative sign
preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).
Enter all other amounts in all other columns as positive and
subtract where necessary.)
Reject
Order
Accept
Order
Net Income
Increase
(Decrease)
Revenues
$
$
$
Costs—Manufacturing
Shipping

3. Net income/(loss)
$
$
$
The special order should be .
Question 4
Vintech Manufacturing incurs unit costs of $8 ($5 variable and
$3 fixed) in making a subassembly part for its finished product.
A supplier offers to make 16,900 of the part at $6.10 per unit. If
the offer is accepted, Vintech will save all variable costs but no
fixed costs.
Prepare an analysis showing the total cost saving, if any,
Vintech will realize by buying the part. (If an amount reduces
the net income for Increase (Decrease) column then enter with a
negative sign preceding the number e.g. -15,000 or parenthesis,
e.g. (15,000). Enter all other amounts in all other columns as
positive and subtract where necessary.)
Make
Buy
Net Income
Increase
(Decrease)
Variable manufacturing costs

4. $
$
$
Fixed manufacturing costs
Purchase price
Total annual cost
$
$
$
The decision should be to .
Question 4
Vintech Manufacturing incurs unit costs of $8 ($5 variable and
$3 fixed) in making a subassembly part for its finished product.
A supplier offers to make 16,900 of the part at $6.10 per unit. If

5. the offer is accepted, Vintech will save all variable costs but no
fixed costs.
Prepare an analysis showing the total cost saving, if any,
Vintech will realize by buying the part. (If an amount reduces
the net income for Increase (Decrease) column then enter with a
negative sign preceding the number e.g. -15,000 or parenthesis,
e.g. (15,000). Enter all other amounts in all other columns as
positive and subtract where necessary.)
Make
Buy
Net Income
Increase
(Decrease)
Variable manufacturing costs
$
$
$
Fixed manufacturing costs
Purchase price

6. Total annual cost
$
$
$
The decision should be to .
Question 5
Ridley Company has a factory machine with a book value of
$95,100 and a remaining useful life of 6 years. A new machine
is available at a cost of $200,700. This machine will have a 6-
year useful life with no salvage value. The new machine will
lower annual variable manufacturing costs from $567,300 to
$437,200.
Prepare an analysis showing whether the old machine should be
retained or replaced. (If an amount reduces the net income for
Increase (Decrease) column then enter with a negative sign
preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).
Enter all other amounts in all other columns as positive and
subtract where necessary.)
Retain
Equipment
Replace

7. Equipment
Net 6-Year
Income
Increase
(Decrease)
Variable manufacturing costs
$
$
$
New machine cost
Total
$
$
$
The old factory machine should be .

8. Title
ABC/123 Version X
1
Process Design Matrix
OPS/571 Version 5
1
University of Phoenix MaterialProcess Design Matrix
Complete the process design matrix.
Write an executive summary identifying appropriate design
approaches for a selected product and service.
· Pick one service with which you are familiar. Complete three
to five line items such as production line, self-service, or
personal attention approach, on the Process Design Matrix.
· Pick one product with which you are familiar. Complete three
to five line items such as Job shop, batch, assembly line, or
continuous flow approach, on the Process Design Matrix.
Process Design Aspect
Service
Product
Design focal point
Strategy
Process design approach
Process map
Process Performance Measurement

9. Factory location
Facilty layout
Process design
Scheduling
Producting planning
Workforce
Quality
Capacity
Inventory
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