Superior Manufacturing is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 55% of sales. Indirect incremental costs are estimated at $80,000 a year. The project requires a new
You have been asked to prepare an analysis of the overhead costs in the order processing department of a mail order company like Lillian Vernon Corporation. As an initial step, you prepare a summary of some events that bear on overhead for the most recent period. the variable overhead flexible-budget variance was $5000 unfavorab
Condensed financial data are presented below for the Phoenix Corporation: 2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 695,000 Current liabilities 252,500 200,000 Long-term liabi
(See attached file for full problem description) --- 1. Condensed financial data are presented below for the Phoenix Corporation: 2006 2005 Accounts receivable 267,500 230,000 Inventory 312,500 257,500 Total current assets 670,000 565,000 Intangible assets 50,000 60,000 Total assets 825,000 69
DIVISION ______________________________________ X Y Z Invested capital $2,000,000
(See attached file for full problem description) --- CASES 7-61 Bevans Company makes two products, product X and product Y. Bevans has produced product X for many years without generating any hazardous wastes. Recently, Bevans developed product Y, which is superior to product X in many respects. However, production of prod
A Certified Public Accountant must meet what requirement?
Accounting is an information and measurement system that?
Assume that a division of Bose makes an electronic component for its speakers. Its manufacturing process for the component is a highly automated part of a just in time production system. All labor is considered to be an overhead cost and all overhead is regarded as fixed with respect to output volume. Production costs for 100,00
4. Oliver and Wendell are the two equal shareholders of Holmes Inc, an S corporation. It made an S election in its first year of operations. Each shareholder has a $10,000 basis in his stock at the beginning of the year. The corporation has $56,000 of net income from operations for the year and made a cash distribution of $80,00
How to calculate return on assets ? annual sales $5,000,000 with a net after tax margin of 5% and a sales to assets ratio of 4
A. Why do venture capital companies prefer to advance money in stages? If you were the management of Company Y, would you have been happy with such an arrangement? With the benefit of hindsight would Company X benefit or lose by advancing money in stages. b. If the price at which a company X would invest more money into Compa
What are some ways to manage your float and how do we measure float?
Fixed cost of restaurant = 21000/month avg bill = 19/customer variable cost s= 10.6 per meal 1. how many meals to attain profit of 8400/month 2. what is break even point per month 3 if fixed costs/rent go to 29925/mo and variable costs go to 12.50/meal, af price increase to 23/meal how many meals needed to make 8400/month
Can you help me get started with this assignment? sold 1000 units per month sales = 100000 direct material used = 21000 direct labor = 16000 variable manufacturing overhead = 13000 fixed manufacturing overhead = 14000 contribution margin= 40000 operating income = 22000 1.What are the variable selling & adminis
Suppose a hotel has annual fixed costs of 3.4 million for its 400 rooms; average daily room rents for $50. and avg variable costs of $10 for each room. Assume 365 day per year operation; 1. how much net income will motel make if it is half full in the year. 2. find the break even point in # of rooms rented; what % occupancy
Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory
The Mussina Chemical Company produced three joint products at a joint cost of $117,000. These products were processed further and sold as follows. Chemical product Sales Additional processing Costs A $230,000 $190,000 B
See attached file for full problem description. --- John Ralph owns The Ralph Construction Company (RCC), a C corporation with a September 30, year end. For ten years RCC constructed special-purpose buildings and reported revenues on the percentage-of-completion method. John also owns Construction Equipment, Inc. (CE). CE
(See attached file for full problem description) --- Its income statement is as follows: Sales $2,628,000 Cost of Goods Sold 1,600,000 Gross Profit $1,028,000 Operating expenses: Selling expenses $300,000 Administrative expenses 400,000 Total operating expenses 700,000 Income from
SportsCards Inc. manufactures baseball cards sold in packs of 10 in drugstores and grocery stores throughout the country. It is the second leading firm in an industry with four major firms. SportsCards has been approached by Zip Cereal Inc., which would like to order a special edition of cards to use as a promotion with it new c
(See attached file for full problem description) --- Following is a list of products to be analyzed by value analysis: Classroom desk Bookends Mousetrap Electric Fan Backpack-style book toter Bike handlebars Fireplace grate Bike lock Coaster on which to set drinks Lamp part shown at the right (pic show the part (bla
Banbury Coporation offered to acquire the business operated by Luttrell Inc., in a type C reorganiztion. In addition to it business, Luttrell owns residential rental property ($420,000 FMV and $270,000 adjusted basis) that Banbury does not want. According to the reorganization plan, Banbury will issue voting stock in exchange
The following selected data pertain to the belt division of Allen Corp. for last year: Sales 1,000,000 Average operating assets 400,000 Net operating income 100,000 Turnover 2.5 Minimum required return 20% Reference: 12-6 How much is the residual income? 20,000 80,000 900,000
The Northern Division of the Kimball Company reported the following data for last year: Sales 800,000 Operating expenses 690,000 Stockholders' equity 250,000 Average operating assets 400,000 Minimum required rate of return 14% Reference: 12-10 The return on investment last year for the Northern D
Suppose your company purchased land and a warehouse for $5 million. The price was steep, but you were told that a new interstate highway was going to be built nearby. Two months later, the highway project is cancelled and your property is now worth only $3 million. Required: 1. How does the concept of accounting conserv
You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the ave
Static Electric Co. currently pays a $2.10 annual cash dividend. It plans to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the required rate of return by common stockholders is 12 percent, what is the price of the common stock?
1) Compute the actual hours worked, rounded to the nearest hour. 2) Compute the actual purchase price per unit of materials, rounded to the nearest penny Standard direct labor rate $14.00 Actual direct-labor rate $ 12.20 Standard direct-labor hours 12,000 Direct-labor usage variance-unfavorable $14,140
12. Scott and associates Inc, is an accounting firm that has three new clients. Project leaders will be assigned to the three clients. Based on the different backgrounds and experience of the leaders, the various leader-client assignments differ in terms of projected completion times. The possible assignments and the estimated