Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. middle industries produces a sensor for use in man

Middle Industries produces a sensor for use in manufacturing. It produces the sensor in a...

80.2K

Verified Solution

Question

Accounting

Middle Industries produces a sensor for use in manufacturing. It produces the sensor in a plant with an annual practical capacity of 88,000 units. The variable cost of the sensor is $198 per unit, and the fixed costs of the plant are $14,520,000 annually. Current annual demand is 55,000 sensors. Middle Industries bought the plant because it was close to its other manufacturing facilities and was available for sale when they were searching for a location.
Required:
a. What cost per sensor should the cost system report to facilitate management decision making?
b. What is the cost of excess capacity?
c. What cost per sensor would the cost system report if the smallest manufacturing plant that could be built was able to produce 88,000 sensors? What would be the cost of excess capacity?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

What are the different steps the microbes cause diseases and three main/general microbial control methods employed?'

Mechanical Engineering
1.2K views

An Otto Cycle engine operation at cold-air standard has a volume of 0.1908 at the beginning...

Advance Math
1.2K views

The laser sight Jupiter uses for surveying is a little off. The mean error is 0.29m,...

Accounting
1.2K views

1. Describe the term relevant range. Why is it important to stay within the relevant range...

Physics
1.2K views

Monochromatic light of wavelength falls normally on a single slit of width b Show that...

Basic Math
1.2K views

You are a lumber jack. You are chopping down a tree that is 91 cm...

Accounting
1.2K views

The company purchased equipment for $464,000 and they estimated the residual...

Accounting
1.2K views

Twe (2) metbods Sor computing or etimating A) B) C) D) 14. uncollectible accounts an...

Accounting
1.2K views

Crowley Building Supply sells various building materials to retail outlets. The company has just approached...

Accounting
1.2K views

Regading the information in the screenshot, pease answer requirements 1-5. Thanks! Requirement...

Accounting
1.2K views

CTC). Daisy understands that it will take a few years for the business...

Finance
1.2K views

The following three defense stocks are to be combined into a stock index in January...