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Accounting

Which are product cost under the variable costing method

Which of the following costs at a manufacturing company would be treated as a product cost under the variable costing method? a) direct material cost b) property taxes on the factory bldg c) sales manager's salary d) all of the above

Common fixed expense not traceable to divisions

Verkamp Corporation has two divisions: the YDI Division and the QCC Division. The corporation's net operating income is $31,800. The YDI Division's divisional segment margin is $111,800 and the QCC Division's divisional segment margin is $152,800. What is the amount of the common fixed expense not traceable to the individual div

Calculate the material price and material quantity variance

In October, 5,000 meters of raw material were purchased at an actual cost of $4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material i

Overhead costs to activity cost pools; activity rates

Imai Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools. Overhead costs: Production overhead . . . . $240,000 Office expense . . . .

Overhead cost to be allocated to unframed, steel and wood frames

How much total overhead cost is expected to be allocated to unframed, steel, and wood frames? Unframed prints 80,000 units direct material print $12. Steel framed 15,000 units direct material print $16. Frame $4. Wood frame 7,000 units direct material print $20 frame $6 Matt Direct labor Unfra

ABC Corp: Compute depreciation and sale of asset. Aaron Co: Bond issue, interest

ABC Corporation purchased new machinery for $600,000. It paid $60,000 down and financed the balance for 3 years at 10% interest. The equipment was put into service on January 1st, 2001. At that time, the useful life was estimated as 10 years with a $90,000 salvage value. Straight line depreciation method was selected for bot

During the next ten years, the major threat to the dominance

During the next ten years, the major threat to the dominance of the U.S. money and capital markets will come from: a. Russia's difficulty in transforming its economy into a capitalistic one. b. Japan's prolonged recession and banking crisis. c. the Euro-zone countries comprising the European Monetary

Contribution margin and break-even

The following data pertain to service offered in a fee-for service setting: Fixed Cost = $9000 Variable Cost = $300 Charge $450 Target profit = $6000 1. Determine the contribution margin for this service 2. Determine the accounting break-even point in terms of volume. 3. Determine the economic break-even point in

Managerial accounting: practice exam

1. Wages paid to the factory maintenance supervisor are considered an example of: Direct Labor - yes, Period Cost - yes Direct Labor - yes, Period Cost - No Direct Labor - no , Period Cost - yes Direct Labor - no , Period Cost - no 2. Machinery Depreciation on a manufacturi

Change in Cash to Investing Activities

Please determine the change in cash to the Investing activities based upon the following cash flow statement. Please explain your answer. I only noticed the fixed assets, but not sure about the securities. Assets 12/31/2012 12/31/2011 Cash $87,000 $79,000 $8,000 Inventory $30,000 $44,000 $(14,000) Secu

Return on Investment (ROI) and Residual Income (RI)

Financial data for Joal de Paris Inc for last year is as follows (see attachment) The company paid dividends of $15,000 last year. The "Investment in Buisson, SA on the balance sheet represents an investment in stock of another company. 1. Compute the company's margin, turnover, and ROI for last year. 2. The board of direc

Change in Cash due to Operating activities.

Please determine the change in cash to Operating activities: Please explain your answer. Please review my attached answer for correctness. The net income is $19000. Assets 12/31/2009 12/31/2008 Cash $26,000 $19,000 $7,000 increase Accounts Receivable $9,000 $12,000 $(3,000) decrease Inventory $16,000

Effects of Change in Sales, Expenses and Assets ROI

CommercialServices.com Corporation provides business-to-business services on the internet. See data in excel spreadsheet. 1. Compute the company's return on investment. 2. The entrepreneur who founded the company is convinced that sales will increase next year by 50% and that net operating income will increase by 200%, with n

Equivalent internal designation to CPA

The certification of being a CPA means that they have been tested and met certain industry criteria (education and experience) to qualify as "experts" in the field of accounting. But, the CPA designation is primarily used to verify the accounting records for external parties. What would be the equivalent internal designation a

Accounting study guide: depreciation

Exercise 1 You have a mine with the following characteristics: 2010 depletion expense: Cost of natural resources less residual value $ 9,000,000 Land improvementsâ?"roads 975,000 Total cost to be depleted $ 9,975,000 Estimated tons of ore 3,000,000 Depletion cost per tonâ?"$9,975,000/3,000,000=

Calculate book value per share

Common Share ($2.00 par value) $350,000 Capital in Excess of Par 0 Retained Earnings $7,800,000 A. From the information above calculate the corporation's book value per share. B. Rework the shareholder's equity as it appears on the books if the corporation

Difference between Evaluating and Reporting

Explain the difference between evaluating, reporting, and testing internal controls for public and nonpublic companies. Under what circumstances would you attempt or not attempt to apply the standards for public companies to nonpublic companies and why?

After-tax cost of preferred stock

A firm's preferred stock pays an annual dividend of $4, and the stock sells for $80. Flotation costs for new issuances of preferred stock are 5% of the stock value. What is the after-tax cost of preferred stock if the firm's tax rate is 30%?

What is the change in cash due to operating activities for Evergreen, Inc?

Q. What is the change in cash due to operating activities? Evergreen Inc. Comparative balance sheets December 31, 2012 Assets12/31/2012 12/31/2011 Cash $357,000 $312,000 Accounts receivable $80,000 $83,000 Inventory $213,000 $199,000 Prepaid expenses $25,000 $21,000 Fixed assets $463,000 $419,000 Accumulat

Income Tax: Qualified Deferred Compensation (When and for Whom is it used?)

Questions to be answered are: 1) What are the four basic requirements for a plan to qualify under section 401(a) of the I.R.C.? (2) What is meant by the term 'qualified deferred compensation' for income tax purposes, and for whom is it most often used? (3) At what time is the employer allowed to take a deduction for i

Operating income, processing products further

Faulk Company has a joint process, which produces three products, X, Y, and Z. Each product may be sold at spli-'off or processed further and then sold. Joint processing costs for a year amount to $30,000. Other relevant data are as follows: Separabl

Comparison over 4 years, absorption and variable costing

The Balakrishnan Corporation began business on January 1, 2000 to produce and sell a single product. Reported operating income figures under both absorption and variable costing for the first 4 years of operation are as follows: Absorption costing 2000: $80,000 2001: 70,000 2002: 50,000 2003: 40,000 Variable costing 2

Disposition of Year-End Underapplied Overhead

Liz's Cosmetics uses a normal cost system and has the following balances at the end of its first year operations. WIP inventory: $200,000 Finished-goods inventory: 200,000 Cost of goods sold: 400,000 Actual Factory overhead: 413,000 Factory overhead applied: 453,000 Compute cost of goods sold for 2 different ways to di

School departmental allocation of computer costs: budgeted and actual

Budget formula = $100,000 fixed costs monthly + $200 per hour of computer time used. Based on long-term usage, the fixed costs were allocated on a lump-sum basis, 30% to business and 70% to engineering. 1. Show the total allocation if business used 210 hours and engineering used 390 hours in a given month. Assume that the act

Price per Unit for Special Order

Chechny business has received one time special order for 1,000 units. Producing the order will have no effect on production and sales of other units. They buyer's name will be stamped on each unit, at a costs of $2,000. Normal cost data, excluding stamping, as follows: Direct materials..............................$10 per un