Upside Down, Incorporated designs custom storage spaces to eliminate clutter in both residential and business settings. The following data pertain to a recent reporting period: Design department Client consultation 500 contact hours 1,000 design hours Drawing $100,000 $75,000 $ 25,000 Models 20,000 square feet Project Management 250 days Supervision Billings $ 43,750 $ 52,500 150 jobs Required . Use ABC to compute overhead rates for each activity. Assign costs to a 3,000 square foot job that requires 70 contact hours, 20 design hours, and 14 day mplete.
Q: Klamath Company produces a single product. The projected income statement for the coming year is as…
A: The operating income is the earnings of an entity from the core business activities or earnings from…
Q: Cost of merchandise sold reported on the income statement was $263000. The accounts payable balance…
A: The value of products sold by a jobber or merchant is noted because the cost of merchandise sold .…
Q: (2) Double-diminishing-balance method Year Opening Carrying Amount $ 2021 2022 2023 2024 2025 2026 $…
A: The cost of the machine as per the above calculation is $ 379,340.
Q: Deferred tax expense or benefit is the net change in DTL and DTA for the period. If the increase in…
A: The deferred tax asset or even the deferred tax liabilities are caused due to the variations in the…
Q: Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price,…
A: Land is the non-current asset that is usually held by the entity for using the same to run its…
Q: perpetual equivalent annual worth
A: Annual worth refers to the net of all the benefits and the expenses which are incurred in the…
Q: On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted…
A: As per the International Financial Reporting standards, the past deferred cost of the pension plan…
Q: Two different companies, Vogel Corporation and Hatcher Corporation, entered into the following…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Compute for the following: 1) How many shares were issued for the Preference Share Capital? 2) How…
A: Disclaimer: "Since the question you asked contains multiple sub-parts so we solved the first three…
Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…
A: Introduction: A company's net income commonly refers to its net profit or net earnings. Net earnings…
Q: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…
A: Given, Purchase cost = $40,000, Accumulated depreciation = $25,000, Sale price = $18,500
Q: each of the following ordinary annuities, calculate the interest and principal portion of the…
A: Principal Amount of loan/ Investment: When any amount borrowed from the lender/banks/Financial…
Q: XYZ Ltd commences operations on 1 January 20X2. During 20X2, XYZ Ltd explores two areas and incurs…
A: The area of interest method is a method used for accounting of units in extractive industries as per…
Q: 2) During the audit of a client you come to the conclusion that there is minimal likelihood that…
A: The auditor is appointed to form an opinion on the financial statement examined. The auditor is…
Q: Instructions: Compute for each of the items enumerated below. Number of preference shares issued for…
A: 1) Number of Preference Shares issued for cash = ( Total Number of Preference Shares - Total Number…
Q: 2. How many years will 100,000 earned a compound interest of P 50,000 if the interest rate is 9%…
A: There are two type of interest being charged on the invested amount. One is simple interest and…
Q: q27 The classification and therefore subsequent measurement of financial assets depends on…?…
A: Financial assets are one of the form of liquid assets. It includes cash, stocks, shares, mutual…
Q: Based on the above and the result of your audit, compute for the following: (Disregard income taxes)…
A: Bulls Inc. a Non public enterprise is negotiating a loan for the purpose of expansion, for which the…
Q: What amount should be recognized by Naga Company on December 31, 2011 as derivative asset or…
A: Given in the question: Naga has entered into the future contract in order to hedge the cash flow. It…
Q: 61 Liam works for Lamneth Technology and is a member of its defined benefit registered pension plan.…
A: According to relevant laws, maximum annual pension benefit is lower of RPP as per company…
Q: K Company estimates that overhead costs for the next year will be $5,125,000 for indirect labor and…
A: Answer:- Overhead rate meaning:- A cost assigned to the manufacturing of a product or service is…
Q: 6. Shown below are account balances found in the ledger of Honesty Corporation at the end of year…
A: Extract of accounting balances from the ledger of Honesty Corporation at the end of the year 2018 is…
Q: Calculate the break-even point in units for a company with multiple products. E6.35 (LO 2, 5) Veejay…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Introduction:- Discount term "2/10, n/60" means If the invoice is paid within 10 days of its date, a…
Q: A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of…
A: Lets understand the basics. Break even point is a point at which no profit no loss condition arised.…
Q: Individual taxpayers are subject to the following income tax: I. Basic tax in…
A: The individual income tax is the tax liability levied on the earnings of a single taxpayer, a…
Q: a. How much is the ForEx gain or (loss) on December 31, 2016? b. How much is the foreign currency…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. When goods…
Q: When DTA reverses, income tax payable is reduced, while when DTL reverses, income tax payable is…
A: Temporary differences are differences between book income and taxable income of the business. These…
Q: F. The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital…
A: There are two type of shares being issued by the business for raising capital. These are ordinary…
Q: Raner, Harris and Chan is a consulting firm that specializes in information systems for medical and…
A: Segment Income Statement: A segmented income statement offers more information by dividing down…
Q: a. How much is the ForEx gain or loss on December 31, 2016? b. How much is the ForEx gain or Loss…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Foreign…
Q: Raner, Harris and Chan is a consulting firm that specializes in Information systems for medical and…
A: Segment Reporting: Reporting on a company's business segments dis aggregates the company's financial…
Q: Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support…
A:
Q: a. How much is the Foreign Currency Payable on March 1, 2017 priorto settlement? b. How much is the…
A: Forward contract is one of the method use for purchase of goods and services on a future date but…
Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…
A: Present value factor calculation = 1/(1+r) n r is interest rate n is time Or year
Q: A gas processing plant consists of 3 functional units; heating/pre-treatment, reaction. and…
A: Investment- An investment is a type of asset created by an investor using his or her own money and…
Q: Please help solve the rest of 2B
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: Master Budget: A master budget is a financial document that specifies how much money an organization…
Q: Mr.Vaase has the details about his firm :No of units sold 20,000, Selling price per unit 30 Variable…
A: Cost of goods sold is the direct costs of production of goods where it includes materials, labor…
Q: A written code of ethics is a document for reference: it is never actively enforced or practiced in…
A: Disclaimer: "Since you have asked multiple questions in a single question so we answered the first…
Q: The following transactions and adjusting entries were completed by Legacy Furniture Co. during a…
A: 7The double declining balance method is an accelerated depreciation calculation is used in business…
Q: Oriole Corporation has 74,000 shares of common stock outstanding. It declares a $2 per share cash…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the…
A: Here asked for multi sub part question we will solve for first three sub part question in accordance…
Q: According to IFRS, which accounting policy may an entity apply to measure investment property in…
A: Investment property means any land or building which is neither held for sale nor for the purpose of…
Q: Chan Company received a bill totaling $3,700 for machine parts used in maintaining factory…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: E3-18 (Static) Analyzing the Effects of Transactions Using T-Accounts and Interpreting the Net…
A: A T-accounts is a log or list of accounts that keep track of account transfers.
Q: As a specialist in the accounting of intangible assets, explain if the costs identified can be…
A: Company discovered that product manufacturing is illegal So, company shut down and proceeded with…
Q: Maya Company leased equipment from Waya Company on July 1, 2020 for an eight -year period expiring…
A: Present value of lease payments: Present value of all lease payments = P3,520,000 (which is equal…
Q: 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base…
A: Lets understand the basics. Trend analysis is a analysis which shows how the variable are changed…
Q: Joint ventures involve the merging of two or more companies. ( ) a) True () b) False A country…
A:
Step by step
Solved in 2 steps with 2 images
- Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. Activities Costs Design department Client consultation 1,700 contact hours 2,000 design hours 53,000 square feet $289,000 114,000 31,800 Drawings Modeling Project management department Supervision Billings 1,300 days 7 jobs 7 jobs $273,000 8,700 12,300 Collections Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,000- square-foot job that requires 430 contact hours, 354 design hours, and 165 days to complete. (Round activity rate answers to 2 decimal places.) Activity Driver Incurred Overhead Activity Expected Costs Expected Activity Driver Activity Rate Assigned Client consultation Drawings Modeling Supervision Billings/Collection Total overhead costCardiff and Delp is an architectural firm that provides services for residential construction projects. The following dats pertain to a recent reporting period. Design department Client consultation Dravings Modeling Project management department Supervision Billings Collections Activity Activities 1,288 contact hours 2,688 design hours 50,000 square foot Client consultation Drawings Modeling Supervision Billings/Collection 1,000 days 9 Jobs 9 Jobs Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 8,400 square foot job that requires 420 contact hours, 356 design hours, and 165 days to complete. (Round activity rate answers to 2 decimal places.) Costs $216,000 152,180 48,888 Expected Costs Expected Activity Driver $230,000 9,000 14,670 Activity Rate Activity Driver Incurred Total overhead cost Overhead AssignedRhode Company provides architectural services for mall development companies. The following data are available for 2013 Expected Use of Activity Cost Pool Estimated Overhead Cost Driver per Activity Secretarialsupport $ 220,000 27,500 professional hours Direct laborfringe benefits 200,000 $500,000 direct labor cost Printing andcopying 30,000 20,000 pages Computer support 250,000 62,500 minutes Liabilityinsurance 140,000 $2,800,000 billed revenue Instructions Compute the activity-based overhead rates.
- Singh and Danzin is an architectural firm that provides services for residential construction projects. The following overhead cost data are from the current period. Budgeted Costs Budgeted Activity Usage contact Activity Client consultation $ 292,500 1,500 hours design hours Drawings 130,000 2,000 1. Compute an activity rate for each activity using activity-based costing. 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. 1. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 decimal places.) Budgeted Cost Activity Budgeted Activity Usage Activity Rate Client consultation Drawings 2. Allocate overhead cost to a job that requires 60 contact hours and 355 design hours. (Round "Activity Rate" to 2 decimal places and other answers to the nearest whole dollar amount.) Activity Activity Usage Activity Rate Allocated Cost Client consultation DrawingsChurchill Products is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company’s cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. Cost Pools Costs Activity Drivers Utilities $ 310,000 62,000 machine-hours Scheduling and setup $ 290,000 580 setups Material handling $ 795,000 1,590,000 pounds of material The company manufactures three models of water basins (Oval, Round, and Square). The plans for production for the next year and the budgeted direct costs and activity by product line are as follows. Products Oval Round Square Total direct costs (material and labor) $80,000 $80,000 $70,000 Total machine-hours 30,000 10,000 22,000 Total number of setups 60 300 220 Total pounds of material 490,000 290,000 810,000 Total direct labor-hours 3,500 2,000 4,500 Number of units produced 4,400 2,000 6,000 Required: (Do not…Churchill Products is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company’s cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. Cost Pools Costs Activity Drivers Utilities $ 290,000 58,000 machine-hours Scheduling and setup 310,000 620 setups Material handling 805,000 1,610,000 pounds of material The company manufactures three models of water basins (Oval, Round, and Square). The plans for production for the next year and the budgeted direct costs and activity by product line are as follows. Products Oval Round Square Total direct costs (material and labor) $ 80,000 $ 90,000 $ 70,000 Total machine-hours 30,000 10,000 18,000 Total number of setups 80 320 220 Total pounds of material 460,000 320,000 830,000 Total direct labor-hours 3,500 1,500 5,000…
- Rey Custom Electronics (RCE) sells and installs complete security computer, audia, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing The following budgeted cost data are available. Materlal Time Loading Charges Charges Technicians' wages and benefits $166,400 Parts manager's salary and benefits $34800 Office employee's salary and benefits 26,880 17.280 Other overhead 17.280 44.640 Total budgeted costs $210.560 $96.720 The company has budgeted for 6400 hours of technician time duringthe coming year. It desires a $39 profit margin per hour of labor and an B0% profit on parts. It estimates the total imvoice cost of parts and materials in 2020 will be $7444,000. (a) Your answer is correct Compute the rate charged per hour of labor. (Round answer to 2decimal places eg 1050J Labor rate 719 per hour eTextbook and Media Attempts 1 of 3 used (b) X Your answr is incorrect Compute the material loading percentage Material loading percentage…Big Mikes, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controllers department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders. The 10 months of data shown below have been gathered for the receiving activity. Required: 1. Prepare a scattergraph, plotting the receiving costs against the number of purchase orders. Use the vertical axis for costs and the horizontal axis for orders. 2. Select two points that make the best fit, and compute a cost formula for receiving costs. 3. Using the high-low method, prepare a cost formula for the receiving activity. 4. Using the method of least squares, prepare a cost formula for the receiving activity. What is the coefficient of determination?Bumblebee Mobiles manufactures a line of cell phones. The management has identified the following overhead costs and related cost drivers for the coming year. The following were incurred in manufacturing two of their cell phones, Bubble and Burst, during the first quarter. REQUIREMENT Review the worksheet called ABC that follows these requirements. You have been asked to determine the cost of each product using an activity-based cost system. Note that the problem information is already entered into the Data Section of the ABC worksheet.
- Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?Joseph Fox, controller of Thorpe Company, has been in charge of a project to install an activity-based cost management system. This new system is designed to support the companys efforts to become more competitive. For the past six weeks, he and the project committee members have been identifying and defining activities, associating workers with activities, and assessing the time and resources consumed by individual activities. Now, he and the project committee are focusing on three additional implementation issues: (1) identifying activity drivers, (2) assessing value content, and (3) identifying cost drivers (root causes). Joseph has assigned a committee member the responsibilities of assessing the value content of five activities, choosing a suitable activity driver for each activity, and identifying the possible root causes of the activities. Following are the five activities with possible activity drivers: The committee member ran a regression analysis for each potential activity driver, using the method of least squares to estimate the variable and fixed cost components. In all five cases, costs were highly correlated with the potential drivers. Thus, all drivers appeared to be good candidates for assigning costs to products. The company plans to reward production managers for reducing product costs. Required: 1. What is the difference between an activity driver and a cost driver? In answering the question, describe the purpose of each type of driver. 2. For each activity, assess the value content and classify each activity as value-added or non-value-added (justify the classification). Identify some possible root causes of each activity, and describe how this knowledge can be used to improve activity performance. For purposes of discussion, assume that the value-added activities are not performed with perfect efficiency. 3. Describe the behavior that each activity driver will encourage, and evaluate the suitability of that behavior for the companys objective of becoming more competitive.A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given the following activities: