Preparing an Overhead Performance Report Several years ago, Edwards Inc. developed a comprehensive budgeting system for profit planning and control purposes. The line supervisors have been very happy with the system and with the reports being prepared on their performance, but both middle and upper management have expressed
Please see attached file. 14. Centennial Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below: What are the incremental (differential) costs of Tour B? A) $2,000 B) $3,000 C) $4,000 D) None of the above 18. Crowe
Stereo Goods is a distributor of videotapes. Video Mart is a local retail outlet which sells blank and recorded videos. Video mart purchases tapes from Stereo Goods at $5 per tape; tapes are shipped in packages of 25. Stereo Goods pays all incoming freight, and Video Mart does not inspect the tapes due to Stereo Good's reputatio
Please see the attached file. (1) Rayburn's Tents makes backpacking tents. It has the capacity to produce 10,000 tents per year and currently is producing and selling 7,000 tents. Normal selling price for a tent is $470. Unit-level costs are $100 for direct materials, $200 for direct labor, and $25 for other manufacturing co
E9.6 Calculate gross profit, cost of goods sold and selling price: MBI, Inc. had sales of $141.6million for fiscal 2009. The company' gross profit ratio for that yr was 31.6%. a. Calculate the gross profit and cost of goods sold for MBI, Inc., for fiscal 2009. b. Assume that a new product is developed and that it will cost
Mannix Company has gathered the following data related to its production process of two of its products for the week ended April 30: Model #100 B #250C Quantity produced 60 100 Unit-level material cost $ 42,000 $ 100,000 Variable conversion cost 72,000 300,000 Total direct costs $114,000 $ 400,000 Indirect c
Bill and Ann are unrelated taxpayers. Both had their taxes prepared last year by the same tax preparer. Bill paid $300 for his tax return preparation while Ann paid $500 for hers. Bill is an employee (receives a Form W-2) while Ann is self-employed (files Form Schedule C). Two years later, as a result of an agreement with state
Your aunt is in a high tax bracket and would like to minimize the tax burden of her investment portfolio. She is willing to buy and sell in order to maximize her after-tax return and she has asked for your advice. What would you suggest that she do?
Alberta Apparel Company, located in Calgary, uses a standard-costing system. The firm estimates that it will operate its manufacturing facilities at 800,000 machine hours for the year. The estimate for total budgeted overhead is $2,000,000. The standard variable-overhead rate is estimated to be $2 per machine hour or $6 per unit
CHAPTER 2 Assessing Martin Manufacturing's CASE Current Financial Position. I need help with question(b). b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market.
Camel is the sole shareholder of Desert, Inc. Desert's taxable income before the payment of Camel's salary is $175,000. Based on this, Camel has the corporation pay him a salary of $100,000 and a bonus of $75,000. A reasonable salary and bonus would be $125,000. Which of the following is correct? a. The taxable income of
1. What are the major advantages of bona fide loans from shareholders and other debt instruments over stock? 2. What conditions need to be met to avoid IRS classification of loans from shareholders as equity (contributions to capital)? 3. What is the tax treatment of losses from worthless stock or securities? 4. What is th
Please see attached file. PART II ? MATCHING Instructions: Designate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No letter should be used more than once. Not all letters will be used. A. Full disclosure principle B. Internal
You are asked to make a depreciation schedule for a business asset.. A depreciation schedule shows the remaining value of the asset at the end of each time period. A. a $1,200 postage printing system depreciated using the straight -line method over 4 years. In your depreciation schedule, give the following information for ea
Much debate surrounds the use of biometrics. Many people like it because biometrics can provide identification and increase security. Other people see it as a tremendous invasion of your privacy. Just as you read in this chapter, a bank¿by using biometric identification¿may be able to tell if a woman is pregnant. So, the great
Teresa sued her former employer for age, rage and gender discrimination. She claimed $250,000 in damages for loss of income and $500,000 in punitive damages. She settled the claim for $600,000. As a result of the settlement Teresa must include in gross income: a. 0$ b. $400,000 [$500,000/($250,000 + $500,000) x $600,000
Wilma divorced Barney last year. This year she received the title to their boat that cost $45,000 and is now worth $55,000. Barney paid Wilma $1,500 per month, $500 for alimony and $1,000 for support of their two children. Wilma owed $60,000 to the bank for a loan on a failed business. To satisfy the debt, she transferred title
What are the advantages and disadvantages of the various business forms? What impact does the form of a business have on its profitability and the availability of funds?
1. Pharout Company uses a standard cost system. Job 822 is for the manufacturing of 500 units of the product P521. The company's standards for one unit of product P521 are as follows: Quantity Price Direct material 5 ounces $2 per ounce Direct labor 2 hours $10 per h
12-56 Following is the information on Paragon Company's three product lines: Product Line 1 2 3 Revenue $7,160,000 1,900,000 4,200,000 Variable cost percentage of sales
Please see attached. PART I ? WORK SHEET COMPLETION Instructions: Complete the partial work sheet presented below, inserting additional labels as needed. SANTOS SERVICES AGENCY Partial Work Sheet For the Month Ended September 30, 2005 ?????????????????????????????????????????? Adjusted Income Balance Trial Balance
Please see the attached excel spreadsheet that includes one worksheet with the problem to resolve, one worksheet with an example of what the problem should be formated or resemble and one worksheet to use for the answer. Please show the calculations. The management of Martinez Manufacturing Company has asked for your assis
Required: Identify factors affecting variability in earnings per share, dividends per share, and market price per share that derive from a. The company b. The economy
(Multiple-step Income, Retained Earnings) Presented blow is information related to American Horse Company for 2007 Retained earnings balance, January 1, 2007 $980,000 Sales for the year $25,000,000 Cost of goods sold $17,000,000 Interest revenue
Could use some help on the following accounting questions: Poin Company recently incurred the following costs: 1. Purchase price of land and dilapidated building 280,000 2. Real estate broker's commission 14,000 3. Net demolition costs of dilapidated building 42,000 4. Excavation costs for ne
Q1- Linda operates a drug-running operation. Which of the following expenses she incurs can reduce taxable income? a. Bribes paid to border guards. b. Salaries to employees. c. Price paid for drugs purchased for resale. d. Kickbacks to police. e. Rent on an office. f. Depreciation on office furniture and equipment. g. Ten
What is the major distinction between revenues and gains? What is the major distinction between expenses and losses? and what is the basis for distinguishing between operating and non-operating items?
The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the ma
Smooth Brew manufactures cappuccino makers. For the first eight months of 2006, the company reported the following operating results while operating at 80% of plant capacity: Sales (120,000) $6,000,000 Cost of Goods Sold 3,600,000 Gross profit 2,400,000 Operating Expenses 1,800,000 Net income $ 600,000 An ana
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have another profitable use for the time he spends harvesting wheat. Unfortunately, the existing combine is worn out and fully DEPRECIATED. It can be sold for its $1,000 spare parts value, but a dealer will allow $5,000 as a trade in allowance on a new $100,000 combine. The new combine will last for a estimated 10 years , after which it will have a negligible salvage value. The farmer is in a 28percent tax bracket and requires 10 percent after tax return on investments. IS THE NEW COMBINE AN ATTRACTIVE INVESTMENT? (assume January 1 installation)
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have a