65. Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: Dept. A Dept. B Direct labor cost $56,0
(Ignore income taxes in this problem.) The Finney Company is reviewing the possibility of remodeling one of its showrooms and buying some new equipment to improve sales operations. The remodeling would cost $120,000 now and the useful life of the project is 10 years. Additional working capital needed immediately for this project
54. Golden, Inc., has been manufacturing 5,000 units of Part 10541 which is used in one of its products. At this level of production, the unit product cost of Part 10541 is as follows: Direct materials $ 2 Direct labor $ 8 Variable manufacturing overh
53. Reddy Company has the following cost formulas for overhead: Cost Cost Formula Indirect materials $2,000 plus $0.40 per machine hour Maintenance $1,500 plus $0.60 per machine hour Machine setup
Gata company plans to discontinue a department that has a $48,000 contribution margin and $96,000 of fixed costs. Of these fixed costs, $42,000 cannot be avoided. What would be the effect of this discontinuance on Gata's overall net operating income? A) Increase of $48,000 C) Increase of $6,000 B) Decrease
Please help with the following problem. Use the following to answer questions 42-43: The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fix
Please help with parts e, and k in the attached problem. --- The ABC Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for 20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The
31. A company had tax-deductible cash expenses of $650,000 last year and the tax rate was 30%. The after-tax net cash outflow for these expenses was: A) $195,000. C) $650,000. B) $455,000. D) $390,000.
30. Green Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is: Variable manufacturing cost $12 Fixed manufacturing cost 9 Unit product cost $21 The part can be purchased from an outside supplier at $20 per unit. If the par
Use the following to answer question 24: The Litton Company has established standards as follows: Direct material 3 lbs. @ $4/lb. = $12 per unit Direct labor 2 hrs. @ $8/hr. = $16 per unit Variable manuf. Overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company rec
The Northern Division of the Smith Company had average operating assets totaling $150,000 last year. If the minimum required rate of return is 12%, and if last year's net operating income at Northern was $20,000, then the residual income for Northern last year was: A) $20,000. C) $5,000. B) $l8,000. D) $2,000.
Please answer the question completely (e.g. premise and supporting facts) and please provide/document your reference. How might the use of "standardization" permit a firm to enhance profit? Discuss fully.
You have just met with the Director of Purchasing. He has been attempting to reduce his costs by placing fewer, but larger, orders for raw materials. You suspect that his department's actions have been contributing to your organization's high DOS. Your assignment is to calculate the EOQ/ELS for the following two cases. Include
At beginning of year, paid in capital was $82 and retained earningswas $49. During the year, the owners invested $34 and dividends of $5 were decalred and paid. Retained earnings at then end of the year were $52. How much was total owner's equity at the end of the year and how much was the net income for the year? Here is al
Padres Co. sells goods subject to a state tax of 5%. State law requires that the amount of sales tax collected during the month be remitted by the end of the following month. At the time of a sale, Padres Co credits the sales account for both the amount of sales revenue and sales tax. Sales tax, when paid, is then debited to
North York Statue Company makes miniature Mountie statues from cast iron. Sales total 40,000 units a year. the statues are finished either rough or polished, with an average demand of 60 percent rough and 40 percent for polished. Iron ingots, the direct material, costs $6 per kilogram. Processing costs are $200 to convert 20
What is the difference between book value per share of common stock and market value per share? Why does this disparity occur?
Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000. For this assignment you are to complete the following tasks: Prepare two different depreciation schedules for the equipment: one using the double-declining balance meth
Activity-based costing versus tradtional overhead allocation methods: Woodruff Industries manufactures and sells custom-made coffee tables. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three
A company has identified two methods for producing playing cards. 1 method involves using a machine having a fixed cost of $10K and variable costs of $1 per deck. The other method would use a less expensive machine (fixed cost = $5K) but it would require greater variable costs (1.50 per deck of cards. If the selling price per
Are any of the following correct? 1. Suppose Company A's EPS is expected to experience a larger % of change in sales than Company B's EPS. Other things held constant, Company A would appear to have more business risk than Company B? 2. Statement 1 would be correct if the term EBIT were substituted for EPS 3. Stateme
Cardinals Co issued $900,000 of 8%, 4-year bonds on 6/1/05 at {96} plus accrued interest. The bonds mature on 3/1/09, and pay interest each 3/1 and 9/1. The straight line method is used to amortize any discount or premium. Compute the 1) amt of interest expense reported FYE 12/31/05 2) balance of the discount account at
(See attached file for full problem descriptions with financial information) 1. Compute the stock price for Cain if it sells at 18 times earnings per share and EBIT is 40,000 2. Calloway cab company determines its break-even strictly on the basis of csh expenditures related to fixed cost. Its total fixed cost are 400,00,
Provide a two or three sentence response that argues for or against (indicate which) each of these statements: a. Accounting is an exact science b. Mangers choose accounting procedures that produce the most accurate picture of the company's operating performance and financial condition. c. Accounting standards in the Un
Solve by graphing, indicate whether each system is independent, inconsistent, or dependent. 1. x + y = 5 x - y = -1 2. y = -x y = -x + 3 Solve by substitution, indicate whether each system is independent, inconsistent, or dependent. 3. x - y = 3 3x - 2y = 3 4. 2x - y = 3 6x - 9 = 3y Solve by the addition metho
What advantages does a sole proprietorship offer? What is a major drawback of this type of organization?
Why is profit maximization, by itself, an inappropriate goal? What is meant by the goal of maximization of shareholder wealth?
Definitional 1. A (n) __________ is a legal entity created by a state, and it is separated from its owners and managers. 2. The ________ _____ lists the firm's assets as well as claims against those assets. 3. The debt ratio, which is the ratio of ______ ___ to ________ ________, measures proportion of funds supplied b
On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.
Cardinals Co purchased some equipment on 12/31/05 by issuing a $525,000, 3%, 5-year note calling for 5 equal annual payments, the first of which to be made on 12/31/06. The appropriate rate of interest for this type of activity is 10%. Since this is a below market interest note, the net method of recording is utilized. Co