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dxpayne dxpayne
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6 years ago
Palmateer Industries makes an electronic component in two departments, Machining and Assembly. The capacity per month is 30,000 units in the Machining Department and 20,000 in the Assembly Department. The only variable cost of the product is the direct material of $100 per unit. All direct material cost is incurred in the Machining Department. All other costs of operating the two departments are fixed costs. Palmateer can sell as many units of this electronic component as it produces at a selling price of $300 per unit.

Required:
Assuming any defective unites produced in either department must be scrapped:
a.    Compute the loss that occurs if a defective unit is produced in the Machining Department.
b.    Compute the loss that occurs if a defective unit is produced in the Assembly Department.
c.    How do your answers in parts (a) and (b) relate to the theory of constraints? Explain.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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btpsandbtpsand
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dxpayne Author
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6 years ago
Correct Slight Smile TY
ky
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Yesterday
this is exactly what I needed
emilyas19
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2 hours ago
This helped my grade so much Perfect
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