Top Posters
Since Sunday
5
o
5
4
m
4
b
4
x
4
a
4
l
4
t
4
S
4
m
3
s
3
New Topic  
hkk hkk
wrote...
5 years ago
Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018:

20172018
Units of L800 produced and sold33,00037,950
Selling price$360$345
Direct materials (square feet)90,00087,000
Direct material costs per square foot$31$33
Manufacturing capacity for L800 (units)41,25039,850
Total conversion costs$866,250$836,850
Conversion costs per unit of capacity$29$29

What is the revenue effect of the growth component?
A) $1,782,000 U
B) $418,500 F
C) $418,500 U
D) $1,782,000 F
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
Read 86 times
2 Replies
Replies
Answer verified by a subject expert
dearsophia21dearsophia21
wrote...
Posts: 145
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

hkk Author
wrote...
5 years ago
I'm still confused, but thanks for answering correctly
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1116 People Browsing
Related Images
  
 368
  
 627
  
 49
Your Opinion
Where do you get your textbooks?
Votes: 284