per nth and has received a special an international customer. internati custom lls the product to regular customers for $95 per unit. The company has excess capacity to produce the special order. T verhead 9.50 Fixed overhead 3.50 Fixed manufacturing overhead totals $35,000 per month. Management has detern Should the company accept the special order?
Q: accamise Company is expected to maint percent growth rate in its dividends, indefinitely. maintain a
A: The required return on a stock, often known as the "cost of equity," is the minimal rate of return…
Q: On January 1, Year 1, East Company purchased West Company. East Company paid $670,000 West's books…
A: Goodwill reflects non-individually identifiable or separable characteristics such as the acquired…
Q: Sunland Corporation had the following items in inventory as at December 31, 2023: Item No. ૬ ૪ ૪ 84…
A: Direct Method :In Direct method the business will charge the inventory write-off to COGS…
Q: Complete the following table: (Enter all values as positive values.) Production 750 830 900 735 840…
A: Production contributes to beginning inventory, which, when added to purchases, leads to the…
Q: Assume a retailing company has two departments-Department A and Department B. The income statement…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Sales (100,000 units @ Sh.20) Variable costs: Direct material 2,000,000 Direct labor 6,500,000…
A: The cost volume and profit analysis work like a managerial tool for analysis of any given level of…
Q: Liang Inc. is a new concept on-line store that has proven to be very popular in the past year. Mr…
A: Intangible assets are non-physical assets of a firm that cannot be touched or seen but nonetheless…
Q: A project requires $428,000 of equipment that is classified as seven-year property. What is the…
A: The Modified Accelerated Cost Recovery System (MACRS) is a tax depreciation method that allows…
Q: 1 Washington State Fisheries, Incorporated, processes salmon for various distributors. Two…
A: In process costing, In the case of WIP, there will be a percentage of completion that will have to…
Q: 4 8.33 points eBook Print References Exercise 6-36 (Algo) Process Costing (LO 6-1) Bremen Fitness…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: When a company sells property and then leases it back, any gain on the sale should usually be…
A: Lease accounting is similar to keeping track of expenditures while renting anything in the business…
Q: On January 1, 2020, Windsor Corporation had $2,000,000 of $10 par value common stock outstanding…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: akeside Inc. produces a product that currently sells for $44.00 per unit. Current production costs…
A: The product cost comprises materials, labor and overhead Costs. The fixed costs arenot are not need…
Q: Presented below is information related to equipment owned by Sunland Company at December 31, 2025.…
A: A journal entry is a written record or account of an individual's personal thoughts, experiences,…
Q: For the year ending December 31, 2022, Bonita Company accumulates the following data for the…
A: Responsibility report:Responsibility reports are those reports which provides reports to different…
Q: Ms. Drake sold a business that she had operated as a sole proprietorship for showed the following…
A: The process of collecting taxes from individuals and corporations is known as taxation, whereas Fair…
Q: Jan. 7 15 23 Credit Sales Balance of Accounts Receivable Austin Co Diaz Co Noble Co. $14,100 7,100…
A: Subsidiary Ledger -Subsidiary ledgers are the individual ledgers comes under single journal ledger.…
Q: Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 43,000…
A: VARIABLE OH COST VARIANCEOverhead cost variance or Overall (or net) overhead variance is the…
Q: Glick Company purchased an oil reserve on July 1, Year 1 for $2,720,000. A total of 200,000 barrels…
A: Depletion is the accounting method used to allocate the cost of natural resources (e.g., oil,…
Q: The Western Pipe Company has the following capital section in its balance sheet. Its stock is…
A: The capital section of a balance sheet, commonly referred to as "owner's equity" or "shareholder's…
Q: Gale Company has the following inventory and purchases during the fiscal year ended December 31,…
A: Under the FIFO method, the oldest products in inventory are sold first.Under weighted average model,…
Q: Phillips Supply uses a periodic inventory system but needs to determine the approximate amount of…
A: The retail method is a standard inventory valuation approach used by retailers to determine the…
Q: Based on the following d
A: Gross income includes your wages, dividends, capital gains, business income, retirement…
Q: Problem 11-60 (Static) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two…
A: for allocating service department costs to operational department we can use various methods.1. Step…
Q: QS 7-8 (Algo) Percent of accounts receivable method LO P3 Warner Company's year-end unadjusted trial…
A: Bad debt expense is related to the allowance for uncollectible accounts. The allowance for…
Q: Required: Calculate the effect of the change in the assumed discount rate on the PBO at the…
A: Projected benefit obligation is identified as the present value of benefit obligations that a…
Q: Marley Corporation makes three products (X, Y, & Z) with the following characteristics: Products Y X…
A: Contribution margin means sales revenue over and above variable costs. In case of limited resources,…
Q: The Shine Company, which manufactures projection equipment, is ready to introduce a new line of…
A: Markup % on total variable cost is calculated by dividing markup amount by total variable cost. The…
Q: Exercise 3-7 (Algo) Balance sheet preparation; errors [LO3-2, 3-3] The following balance sheet for…
A: Balance sheet is a financial statement which summarises the firm's assets, liabilities and equities…
Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…
A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…
Q: Waterway Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step in…
A: Budget is an estimation of future profit and loss accounts in advance. Management creates various…
Q: udiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal…
A: The net income is calculated as the difference between the revenue and expenses. The net income…
Q: Calculate the quality of earnings ratio under each approach. (R
A: Cash flow from activities is divided by net income to get the quality of income ratio. A corporation…
Q: You have gathered the following vehicle costs Vehicle Costs Annual depreciation Current year's loan…
A: The expenses a firm incurs to carry out its operations are known as operating costs. Both fixed and…
Q: Effect of Transactions on Accounting Equation a. A vacant lot acquired for $480,500 is sold for…
A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.Assets…
Q: Fixed assets Goodwill Covenant not to compete Total $256,600 51,320 64,150 $372,070 a. How much of…
A: Intangiible assets include goodwill and covenants not to compete.As per Sec 197, Amortizing…
Q: a. Prepare journal entries to record the credit sales, the collections on account, and the preceding…
A: Journal entries for credit losses involve recording anticipated losses due to accounts receivable…
Q: The employer allowed jensen to use the condominium for free in recognition of outstanding a…
A: Gross Total Income is the sum of all an individual's earnings before any deductions or taxes. It…
Q: NewTech purchases computer equipment for $265,000 to use in operating activities for the next four…
A: Depreciation is considered an expense charge on the value of the asset. It can be calculated by…
Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023.…
A: FICA Tax rate :Employer = 7.65% ( In which 6.2% for social security & Remaining for Medicare…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6% x…
A: Projected benefit obligation is the future benefits' present value that is to be paid to the…
Q: Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that…
A: Differential analysis is a technique for making decisions that analyzes the net outcomes of two…
Q: Calculate the Social Security and Medicare deductions for the following employee (assume a tax rate…
A: Answer:- Tax liability meaning:- The amount that a person, company or other entity owes to a federal…
Q: The following selected transactions apply to Topeca Supply for November and December, Year 1.…
A: Sales Tax is a ledger that is used to record sales tax collected by the organization at the time of…
Q: Multiple Choice O $214,200. $208,320. $198,030.
A: A hypothetical tax expense is an estimated or projected expense that a company may record on its…
Q: Provide a reconciliation of JP's accounting income to its taxable income for each of 2023, 2024, and…
A: A reconciliation statement of the incomes of accounting income and taxable income is the statement…
Q: Required: Prepare the cash flows from the operating activities section of the statement of cash…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: 30. A purchased goods costing 200000, 8 sold 4/5th of the goods for Rs 250000. Balance goods were…
A: A business venture is a joint undertaking or project where individuals or entities collaborate to…
Q: ish Brothers Corporation has the following ndirect factory labor Direct materials used $4,300…
A: Cost Of Goods Manufactured - It Is The Total Cost Of Completed Finished Goods Transferred From Work…
Q: Pharoah Inc. produces three separate products from a common process costing $100,600. Each of the…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
1
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
- Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?Cozy, Inc., manufactures small and large blankets. It estimates $350,000 in overhead during the manufacturing of 75,000 small blankets and 25,000 large blankets. What is the predetermined overhead rate if a small blanket takes 1 machine hour and a large blanket takes 2 machine hours?
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hoursGenuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for 100 per case. There is a selling commission of 20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. 0.02 2.00 Natural oils Variable 30ozs. 0.30 9.00 Bottle (8-OZ-) Variable 12 bottles 0.50 6.00 17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. 18.00 6.00 Filling Variable 5 14.40 1.2 25 min. 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed 600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 19,560 Part ABreak-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Month Case Production Utility Total Cost January 500 600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1,025 705 Instructions 1. Determine the fixed and variable portions of the utility cost using the high-low method. 2. Determine the contribution margin per ease. 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month. Part BAugust Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at 100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Cases Cost Estimated finished goods inventory, August 1 300 12,000 Desired finished goods inventory, August 31 175 7,000 Materials Inventory: Cream Base (ozs.) Oils (ozs.) Bottles (bottles) Estimated materials inventory, August 1 250 290 600 Desired materials inventory, August 31 1,000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in tile cost per unit or estimated units per case operating data from January. Instructions 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. 7. Prepare the August direct labor budget. Round the hours required for production to the nearest hour. 8. Prepare the August factory overhead budget. 9. Prepare the August budgeted income statement, including selling expenses. Part CAugust Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the Beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Actual Direct Materials Quantity per Case Cream base 0.016 per oz. 102 ozs. Natural oils 0.32 per oz. 31 ozs. Bottle (8 oz.) 0.42 per bottle 12.5 bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing 18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead 305.00 Normal volume 1,600 cases The prices of the materials were different than .standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rale to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less titan standard. Instructions 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest hour. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,250 cases of production used in the budgets for parts (6) and (7)?
- Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.Han Products manufactures 22,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $72,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $40 respectively. The company produced 10,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $20 $12 overhead traceable/avoidable $15 $13 fixed variable selling & $ 5 $ 6 admin allocated/unavoidable $12 $2 fixed total cost per unit $ $ 13 Orange Bliss has had low volume in Rocks (2,000 units sold) for some time and is considering dropping that product line. What is the advantage (disadvantage) of dropping this product line? Round to nearest whole number with disadvantage expressed as a negative