Question 1) A Company uses activity-based costing to compute the costs of her catered parties. Each party is limited to 20 guests and requires four people to serve and clean up. The company offers two types of parties,an afternoon picnic and an evening formal dinner. The break-down of the costs f
Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cast of $20,000; it was being depreciated under MACRS using a 5-years recovery period. (See Table 3.2 on page 100 for the applicable depreciation percentage.) The existing machine is expected to have a usable life of at least 5 more years. The new machine costs $35,000 and requires $5,000 in installation costs; it will be depreciated using a 5-years recovery period under MACRS. The existing machine can currently be sold for $25,000 without incurring any removal or cleanup costs. The firm pays 40% taxes on both ordinary income and capital gains. Calculate the initial investment associated with the proposed purchase of new grading machine.
Cushing Corporation is considering the purchase of a new grading machine to replace the existing one. The existing machine was purchased 3 years ago at an installed cast of $20,000; it was being depreciated under MACRS using a 5-years recovery period. (See Table 3.2 on page 100 for the applicable depreciation percentage.) The ex
See attached files. You and your colleagues at the firm have been asked to develop training materials for new hires on the preparation of tax returns for the corporation, using the tax return for your client company name, Peacock Tree Incorporated, as an example. To access Peacock Tree Incorporated information, and to comp
Find the book value for each of the assets shown in the following table, assuming that MACRS depreciation is being used. Asset Installed cost Recovery period(years) Elapsed time since purch. A $950,000 5 3 B 40,000 3 1 C 96,000 5 4 D 350,000 5 1 E 1,500,000 7 5
Find the book value for each of the assets shown in the following table, assuming that MACRS depreciation is being used. Asset Installed cost Recovery period(years) Elapsed time since purch. A $950,000 5 3 B
In 2011, the Westgate Construction Company enter into a contract to construct a road for Santa Clara County for $10,000,000. The Road was completed in 2013. Information related to the contract is a follows: 2011 2012 2013 Cost incurred during year $2,400,000 $3,600,000 $2,200,000 Estimated Costs to complete as of y
Please help with the following accounting problem: An item has a setup cost of $100 and a weekly holding cost of $0.50 per unit. Given the following net requirements, what should the lot sizes be using lot-for-lot (L4L), economic order quantity (EOQ) and least total cost (LTC)? Also, what is the total cost associated with eac
See case here: https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&ved=0CHQQFjAI&url=http%3A%2F%2Fcdn.transtutors.com%2FUploadAssignments%2F280706_2_Tyco--I-m-Sure-That-It-s-a-Really-Nice-Shower-Curtain-389-402p.pdf&ei=xrHYUcnVB_jG4AOHxYDYDg&usg=AFQjCNF2cmuv8iuoiLBY_RmIX8Kqr2iV6A&sig2=WyPvBBJElHyL0XCSaGhPKA Case St
Mass production of chairs for children are purchased in a variety of colors but with one basic design. Design is the key to the company's success following data: Plastic...........................10 lbs at $4.50 per pound Molding..........................3 ft at $3.00 per foot Direct Labor....................4 hours at 6.0
Please see attached file. I need help answering questions 1 and 2 only.
Determination of operating income for the Olive Oil Division of Better Food Co: Transfer pricing issues
Better Food Company recently acquired an olive oil processing company that has an annual capacity of 2,000,000 liters and that processed and sold 1,400,000 liters last year at a market price of $4 per liter. The purpose of the acquisition was to furnish oil for the Cooking Division. The Cooking Division needs 800,000 liters of o
* Yukio Mishima Industries acquired equipment this year to be used in its operations. The equipment was delivered by the suppliers, installed by Mishima, and placed into operation. Some of it was purchased for cash with discounts available for prompt payment. Some of it was purchased under long-term payment plans for which the i
Jay Manufacturing, Inc. began operations five years ago producing probos, a new type of instrument it hoped to sell to doctors, dentists, and hospitals. The demand for probos far exceeded initial expectations, and the company was unable to produce enough probos to meet that demand. The company was manufacturing probos on equipme
1)The following transactions occurred in October at Pawnee Workshops, a custom manufacturer of furniture: 1. Purchased $16,000 of materials. 2. Issued $800 of supplies from materials inventory. 3. Purchased $11,200 of materials. 4. Paid for materials purchased in transaction (1) 5. Issued $13,000 in direct materials to the
Which s a better criterion for judging managers, budgeted performance or past performance? Why? Production managers and marketing managers historically mix like oil and water. Discuss how a budget can assist in reducing battles between these two areas (production and marketing). What specific considerations arise when bu
1. For the year ended December 31, 2010, Kurz Co. estimated its allowance for doubtful accounts using the year-end aging of accounts receivable. The following data are available: Allowance for doubtful accounts, 1/1/10 $37,000 Estimated uncollectible accounts during 2010 (1% on credit sales of $4,000,000) 40,000
I think that the fees would be better used for paying off our house and buying a new, bigger house that I've had my eye on. Does it make better tax sense for us to pay off the mortgage, sell the house, and buy a new house, or should we just use the money to buy the new house after selling the old house? Also, I sell handcraft
Milano Corporation has three operating divisions and requires a 12% rreturn on all investments. Selected information is presented here: a. Calculate the missing amounts for each division. b. Comment on the relative performance of each division. c. Provide an example to show how residual income improves decision making at
Jane Smith I think that the fees would be better used for paying off our house and buying a new, bigger house that I've had my eye on. Does it make better tax sense for us to pay off the mortgage, sell the house, and buy a new house, or should we just use the money to buy the new house after selling the old house? Also, I se
Explain appropriate controls for accounts payable. Do not just list internal controls explain appropriate controls for accounts payable based on the Apollo Shoes case. http://www.mhhe.com/business/accounting/louwers2e/apollo.html. Review board meeting minutes for AP.
See attachment. Gruner Company produces golf discs which it normally sells to retailers for $7.16 each. The cost of manufacturing 20,200 golf discs is: Materials $10,302 Labor 29,290 Variable overhead 20,402 Fixed overhead 39,592 Total $99,586 Gruner also incurs 8% sales commission ($0.57) on each disc sold.
5. Loin Cabinetry produces two models of home shelving, the Basic-Super and the Mega-Super. Data on operations and costs for November are: Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses: (a) Direct labor hours to allocate overhead costs (b) Direct labor costs to allocate overhead costs (c)
2. A company ran a regression analysis using direct labor hours as the independent variable and manufacturing overhead costs as the dependent variable. The results are summarized below: The company is planning to operate at a level that would require 12,000 direct labor hours per month in the upcoming year. Require
What are the advantages and disadvantages of organizing a business as a partnership? Compare and contrast a general partnership and a limited partnership. Under what circumstances might you set up a partnership?
1) OBX Mufflers accepted a five-month, 7.5% interest, $2,400 note from ABD Motors on June 1, 2008. The entire balance is payable at the note's maturity. What will be the total payment on October 31, 2008? 2) George Masonry accepted a four-month, 10% interest, $1,800 note from Earth Tones on July 1, 2008. The entire balanc
In 2006 and 2007, each of Aldor Company's four operating segments met one of the three quantitative tests for segment reporting. In 2008, Segment B failed to qualify. I have presented a basic look at the drivers and how my company uses them. You will want to add your ideas and insights for this as well. Drivers: Intellig
5-43 Interpretation of Regression results: Simple Regression Using a Spreadsheet Hartman Company's Lucas plant manufactures thermostatic controls. Plant management has experienced fluctuating monthly overhead costs and wants to estimate overhead costs accurately to plan its operations and its financial needs. Interviews with
See attachment for better format. Thorne Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $8.96 $11.82 $16.22 Variable costs and expenses $2.72 $9.54 $11.72 Machine hours to produce 2 1 3 Compute
5-39 Account Analysis The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow: Month Special Analyses Customer Accounts Paychecks Processed Accounting Service Costs 1 2 325 1029 $63,800.00 2 4 310 993 68
For each of the following organizations, determine the amount of the UBIT. a. AIDS, Inc., an exempt charitable organization that provides support for individuals with AIDS, operates a retail medical supply store open to the general public. The net income of the store, before any Federal income taxes, is $305,000. b. The lo
Conducting an interview as a fraud investigator, is the interview an evidence gathering process in itself? Please elaborate.