Purchase Solution

Facility level costs

Not what you're looking for?

Ask Custom Question

Titan Snow Shovel Company (TSSC) has a pricing policy of cost plus 40% to cover all costs. They base their costing on the expectation that they will sell 50,000 shovels at $98 each. Unit level costs are $40 per unit. Product and batch level costs together equal $500,000. Facility level costs are

a $20.00 per unit
b $58.00 per unit
c $17.00 per unit
d None of the above

Purchase this Solution
Solution Summary

This solution shows step-by-step calculations to determine the facility level costs.

Solution Preview

Titan Snow Shovel Company (TSSC) has a pricing policy of cost plus 40% to cover all costs. They base their costing on the expectation ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

View More Free Quizzes
Related BrainMass Solutions

  • Cost hierarchy

    A cost which changes for each unit of production is a unit level cost, costs inucrred for a batch of production are batch level costs, costs incurred for specific products are product level and costs incurred for all facility are facility level costs

  • Cost accounting for Highland Music Records

    All other costs are facility-level costs.

  • Costs of production of water valves

    Batch level set up costs (5,000 units per batch) $25,000 Product level supervisory salaries $37,000 Allocated facility costs $20,000 If the company expects an annual need for 5,000 valves.

  • Company A has identified three cost pools to allocate overhe

    The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $320,000 Direct labor-hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent

  • Harcourt Marketing (HM) Calculate current profit (net income).

    Unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. Product-level and facility-sustaining costs are $50,000 and $65,000, respectively. _________1.

  • Identifying Variable Costs

    The cost of hardware installed on sailboat: The hardware costs the same regardless of the boat's activity level. 3. The cost of rent on a Devry facility: Rent is usually charged by square footage, not level of activity. 4.

  • Product Cost Hierarchy

    120160 Product Cost Hierarchy For the following list of costs, indicate by the appropriate letter which category of activities each cost applies to unit level (U), batch level (B), product line (P) or facility support (F): a.

  • Production Cost - A production costs summary

    Product-level overhead 4.00/unit Total cost per unit $17.00 Fixed facility-level selling costs are $600,000 per year and unit-level selling costs are $2.

  • Clock builder and Dress for Success

    $1,200 Annual product-level costs $15,000 Allocated facility-level costs $50,000 BizDress has offered to purchase 500 suits as a one-time special purchase at a price of $140.

View More Related Solutions