See pdf file. Exercise 10-7: Analysis of income effects from eliminating departments L.O. C1, A1 Dept. M Dept. N Dept. O Dept. P Dept. T Sales $63,000 $ 35,000 $56,000 $42,000 $ 28,000 Expenses Avoidable 9,800 36,400 22,400 14,000 37,800 Unavoidable 51,800 12,600 4,200 29,400 9,800 Total expenses 61,600 49,000 26,600 43
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See pdf file. Exercise 10-9: Sales mix determination and analysis L.O. C1, A1 Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is five units per hour. The machine's capacity is 2,750 hours per year. Both products are sold to a s
Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $6 per package.
See pdf file. Problem 10-1A: Analysis of income effects of additional business L.O. C1, A1 Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $6 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials
1. A firm has fixed costs of $60 and variable costs as indicated in the table. a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each
1. The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Year Nominal GDP Billions, Price Index (1996 = 100) Real GDP, Billions 1960 $ 527.4 22.19 $____ 1968 911.5 26.2
Salvage Value. Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of the older equipment will become unnecessary when the company goes into production of it's new product. The obsolete equipment, which originally cost $40 million, has been depreciated straight-line over a
The equation for calculating capital.
Rob sells his interest in a passive activity for $120,000. Determine the tax effect of the sale based on each of the following independent facts:
1. Rob sells his interest in a passive activity for $120,000. Determine the tax effect of the sale based on each of the following independent facts: A. Adjusted basis in this investment is $42,000. Losses from prior years that were not deductible due to the passive loss restrictions total $48,000. B. Adjusted basis in this
Discuss the risk and return characteristics of a portfolio in terms of correlation and diversification, and the impact of international assets on a portfolio.
Please see the attached file. Risk Discuss the risk and return characteristics of a portfolio in terms of correlation and diversification, and the impact of international assets on a portfolio. Time Value of Money Discuss the concept of future value and present value, their calculation for single amounts, and t
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all
Explain the responsibilities of and the accounting by employers for employee payroll deductions.
Please some help with the attached questions. Would be greatly appreciated. Multiple Choice 1. Taxable income for an individual is defined as: a. AGI reduced by itemized deductions. b. AGI reduced by personal and dependency exemptions. c. total income reduced by deductions for AGI. d. AGI reduced b
Why would the vice president of a company who receives an annual bonus based on profitability of the company want you to create a income statement that classified startup costs, research costs and development costs as a product costs? What are the ethical considerations of reporting startup costs as product costs? As a cor
LBG Co. had a sheet metal cutter that cost $72,000 on January 5, 1999. This old cutter had an estimated life of ten years and a salvage value of $12,000. On April 3, 2004, the old cutter is exchanged for a similar cutter (a similar asset) with a market value of $36,000. LBG Co. also received $9,000 cash. Assume that the last fis
Jantz Corporation purchased a machine on July 1, 2001, for $250,000. The machine was estimated to have a useful life of 10 years with an estimated salvage value of $14,000. During 2004, it became apparent that the machine would become uneconomical after December 31, 2008, and that the machine would have no scrap value. Accumulat
On January 1, 2004, the Accumulated Depreciation, Machinery account of a particular company showed a balance of $740,000.
On January 1, 2004, the Accumulated Depreciation, Machinery account of a particular company showed a balance of $740,000. At the end of 2004, after the adjusting entries were posted, it showed a balance of $790,000. During 2004, one of the machines which cost $250,000 was sold for $121,000 cash. This resulted in a loss of $8,000
Tom has investments in 4 passive activity partnerships purchased several years ago. For 2006 in income and losses were as follows:
1. Tom has investments in 4 passive activity partnerships purchased several years ago. For 2006 in income and losses were as follows: ACTIVITY INCOME (LOSS) A $50,000 B (50,000) C (20,000) D
Case 1 ("Predetermined Rate") Hoy Heating and Air Conditioning Company repairs heating and cooling equipment. Each time a service technician completes a job, a time sheet is turned in and the job cost is computed. The company calculates the cost of each job by adding the cost of any materials used on the job, the labor cost o
Is it true or false statement? Including manufacturing overhead costs in product costs ensures that each product will earn a profit.
Johnson Company has observed that at an activity level of 5,000 units the cost for maintenance is $6,500 and at 10,000 units the cost for maintenance is $9,000. Using the high-low method, the cost formula for maintenance is $4,000 plus $.50 per unit $3,000 plus $.60 per unit $.90 per unit $1.30 per unit
Sales for a retail store were $250,000. Net Operating Income totaled $30,000 and cost of goods sold was $110,000. If the contribution margin was $100,000. What would the total variable selling and administrative costs have been?
Stuart Company is a merchandising company. During the next month, the company expects to sell 450 units. The company has the following revenue and cost structure: Selling price per unit.......... $230 Cost per unit...................... $120 Sales commission............... 12% of sales Advertising expense.......
Cranbrook Company has the following data for the month of March: Sales.......................................................... $30,000 Fixed manufacturing overhead................. $5,500 Direct labor................................................ $7,250 Fixed selling expense......................
If a company in computing its predetermined overhead rate included its factory insurance cost twice. Then does this result in the ending balance: of Finished Goods to be understated or the credits to the Manufacturing Overhead account to be understated or the Cost of Goods Manufactured to be overstated or the Net Operating
Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table? The amount paid to the individual who stains the table. The commission paid to the salesperson who sold the table. The cost of glue used in the table. The cost of the wood used in the table. I
I:4-60 Alice Johnson, Social Security number 222-23-3334, is a single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return for 2005: 1) Received a $20,000 salary from her employer, who withheld $3,000 federal income tax. 2) Received a gift
Vannorman Corporation processes sugar beets in batches. A batch of sugar beets costs $75 to buy from farmers and $11 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $11 or processed further for $20 to make the end produc
Gallerani Corporation has received a request for a special order of 5,200 units of product A90 for $20.8 each. Product A90's unit product cost is $14.6, determined as follows: Direct materials $ 5.6 Direct labor 4.2 Variable manufacturing overhead 1.8 Fixed manufacturing overhead 3 Unit product cost $14.6 Direct
Hodge Inc. has some material that originally cost $73,300. The material has a scrap value of $57,100 as is, but if reworked at a cost of $1,600, it could be sold for $54,400. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap? -$4
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system appear below: Sales $760,000 Variable expenses $480,000 Fixed manufacturing expenses $266,000 Fixed selling and administrative expenses $312,000 All fixed expenses of the company are fully allocated