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Average costs and Variable costs as a Performance measure

The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in the process of deciding whether to evaluate the manager of the manufacturing unit by the average cost per unit or the variable cost per unit. Quality and timely delivery would be used in conjunction with

Flexible Budgets and Activity Variances

Harold's roof repair has provided the following data concerning it costs: Fixed Cost per Month Cost per repair-hour Wages and Salaries............$21,380 $15.80 parts and supplies

Jackie's Retail Business

Jackie's is a large, locally-owned general retail business operating out of a single location. A condensed version of their most recent annual segmented income statement is given below (all amounts in thousands of dollars). Company Dept A Dept B Depts C-F Sales $3,450 $ 345 $690 $2,415 COGS 1,538 179 3

Accounting_differential analysis report

Product J is one of the many products manufactured and sold by Gooble Company. An income statement by product line for the past year indicated a net loss for Product J of $7,250. This net loss resulted from sales of $265,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost

Journalize and post to the allowance account

Presented here is an aging schedule for Zimmerman Company. Please see attachment. Customer Total Not Yet Due Number of Days Past Due 1â?"30 31â?"60 61â?"90 Over 90 Aaron $22,000 $12,000 $10,000 Barry 40,000 40,000 C

Sold as Is or Processed Further Into an End Prduct?

Geballe Industries is a division of a major corporation. Last year the division had total sales of $21,420,000, net operating income of $2,270,520, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. Question What is the division's margin? What is the division's turnover? W

Accounting for Goodwill in Selected Countries

The table below shows the differences in accounting treatments for goodwill in three selected countries. Accounting for goodwill in selected countries United States - No-to expense immediately; No-to charge to equity; No*-tax deductible Canada - No-to expense immediately; No-to char

Willingford MicroBrew: Computing the Simple Rate of Return

The management of Wallingford MicroBrew is considering the purchase of an automated bottling machine for $93,500. The machine would replace an old piece of equipment that costs $43,000 per year to operate. The new machine would cost $13,000 per year to operate. The old machine currently in use could be sold now for a scrap value

Issa Company: Should the company accept of reject the special order?

Issa Company manufactures a personal computer designed for use in schools and markets it under its own label. Issa has the capacity to produce 25,000 units a year but is currently producing and selling only 15,000 units a year. The computerââ?¬â?¢s normal selling price is $1,600 per unit with no volume discounts. The unit-l

Jeffrey Company: Calculate net income for the year

Last year the return on total assets in Jeffrey Company was 8.5%. The total assets were 2.9 million at the beginning of the year and 3.1 million at the end of the year. The tax rate was 30%, interest expense totaled $110 thousand, and sales were $5.2 million. Net income for the year was: A) $145,000 B) $222,000 C) $33

Distributions from Clampett, Inc., How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew? What is Brett's outside tax basis in his LLC interest?

23- Clampett, Inc. (an S corporation) previously operated as a C corporation. Distributions from Clampett, Inc. are deemed to be paid in the following order: A. The AAA account, prior C corporation earnings and profit, shareholder's remaining stock basis B. Shareholder's remaining stock basis, the AAA account, prior

Questions regarding accounting practices

An individual taxpayer sells some used assets in a garage sale. Why are none of the proceeds taxable in most situations? What usually constitutes evidence of a "sale" of property for tax purposes? What is the difference between a "worthless security" and "1244 stock"? How is it possible to have a casualty gain from t

Variable & Fixed Costs, Contribution Margin, and Full Costing

1) Define variable and fixed costs. Comment on how these costs are used to estimate future requirements. 2) Discuss how contribution margin is used by managers for decision making. 3) Define full costing and give an example how full costing is applied and used by managers to make good business decisions.

Overhead Variances

The following information is for the third quarter of this year: Planned Actual Production 92,000 units 87,000 units Direct labor hours 506,800

Selling Price/Costs Associated with All Sports' Tackle Boxes

All Sports Company's production manager, Chris Adler, had requested to have lunch with the company president. Adler wanted to put forward his suggestion to add a new product line. As they finished lunch, Meg Thomas, the company president, said, "I'll give your proposal some serious thought, Chris. I think you're right about the

Calculations for Rivera Corporation and Melrose Inc.

Problem 1. The following information is for a product manufactured and sold by Rivera Corporation: Sales price per unit, $30 Variable cost per unit, $20 Total fixed costs, $200,000 Last year, Rivera earned a profit of $60,000 Required: 1) How many units did Rivera sell last year? 2) Rivera's managers are considering dec

Accounting Homework Assistance

2. Elite Industries is a division of Nifco, a diversified manufacturer whose divisions are profit centers. Elite makes a single product, X47, in its plant, which has a capacity of 18,000 units/month. At the normal volume of 10,000 units/month, X47 has a unit cost of $750, consisting of: direct materials, $260; direct labor, $180

Accounting Calculations for Wasson Corporation

Shown below are the amounts from the stockholders' equity section of the balance sheets of Wasson Corporation for the years ended December 31, 2010 and 2011. 2011 2010 Stockholders' equity: Capital Stock