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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.


The ABC Floral Shop sold the following number of geraniums during the last 2 weeks: 1. Calculate the demand for day 15 Day Demand Day Demand 1 200 8 150 2 134 9 182 3 157 10 197 4 165 11 136 5 177 12 163 6 125 13 157 7 146 14 169 Develop a spreadsheet to answer the following questions. 2. Calculate a forecast of the

Earning Per Share..

For 2010, Skresso Co. reported $3.64 of earnings per share of common stock. During 20011 the firm had a 4% common stock dividend. 2010 earnings per share to be reported in the annual report for 2011 are:

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

Variance Analysis..

Please see attachment! Q1. (12 marks ) Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: (image attached) From the above information, compute the following variances. Show whether the variance is favourable (F) or unfavourabl

Case 14-1 Pet Groom & Clean Case

See attached case file. 1. Develop an analysis (sales, direct cost variance and the role of non-financial performance measures). 2. It must be report type. If you need to add charts or tables, you can do so.

Taxation: Marriage penalty, AMT exemption, FICA tax

1. In 2011, Lisa and Fred, a married couple, have taxable income of $795,000. If they were to file separate tax returns, Lisa would have reported taxable income of $380,000 and Fred would have reported taxable income of $415,000. What is the couple's marriage penalty or benefit? 2. Olga is married and files a joint tax

Nevin Company: Allocate Budgeted Overhead Cost to Products

See attached file for proper format. Nevin Company makes three products in its factory: plastic cups, plastic table cloths, and plastic bottles. The expected overhead costs for the next fiscal year include the following: Factory manager's salary $260,000.00 Factory utility cost $121,000.00 Factory supplies $56,000.00 Tota

Interpreting Target Corporation's Annual Report

Annual Report Project 1. Identify and explain the main sections of Targetââ?¬â?¢s annual report. Financial Summary ââ?¬" This section reports the totalor per share amounts for five to ten financial items for the current year and one or more previous years. Financial items from the income statement and the banance

Brief summary of economic costs and how they are different from accounting costs

1. Give a brief summary of economic costs (i.e. how are they different from accounting costs). In the short-run, why might a firm still operate even when there is a loss. 2. Read the following short article: Vargas, L. (2001). ââ?¬Å"Maquiladoras: Impact on Texas Border Cities,ââ?¬Â? in The Border Economy, Federal R

Binghamton Film Corporation: Expected Cash Collections

The following information is from Binghamton Film Corporation's financial records. Month Sales Purchases April $ 72,000 $ 42,000 May 66,000 48,000 June 60,000 36,000 July 78,000 54,000 Collections from customers are normally 70 percent in the month of sale, 20 percent

Accounting: Tax Reform

Can you help me get started on this assignment? 1. Research the most common tax loopholes used by corporations and partnership to avoid paying federal income tax. Discuss two (2) loopholes identified and what strategies you would recommend to the federal government for closing these loopholes. 2. Evaluate whether or not the

Contributed services

In the following situations and indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response. 1.Camp Chi-Wan-Da, a summer camp for disadvantaged youth, benefits from the services of four physicians, each of whom spends two

Cost Allocation

Milton Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows: Maintenance $70,000 Materials handling 30,000 Setups 25,000 Inspection 50,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct lab

Capius Corporation bonds: Account for issuance with warrants

Capius Corporation issued 2000 bonds in 1000 individual denominations. Each bond has twenty detachable warrants. The bonds and warrants were sold at 110. At the time the bonds were issued each warrant had a market value to one percent of the face value on one bond. Capius will account for this transaction as: A) Bond pay

Traditional vs. ABC Costing

$30,000 was allocated to overhead costs. The cost of labor is $3 for product A and $3.50 for product B. Total number of A produced is 3000 and B produced is 3000. Direct Material cost for A is $10 and for B is $10.50.The overhead is charged on basis of labor cost. Out of the $30,000 allocated to overhead costs, $10,000 is rela

Calculate the productive measures.

A farmer grows two crops: lettuce and beans. The farmer uses three inputs: labor, seed and fertilizer. The past prices and the quantities of each are given in the following tables: Physical Quantities Past

Using Scatter Diagrams

Why are scatter diagrams useful? What are some difficulties in creating scatter diagrams? Give some examples of using a scatter diagram. Info on a scatter diagram: The Scatter Diagram shows how the values of two variables relate to one another. Is there a relationship and can one variable be used to predict another variable?

Taxation: Realized vs recognized gain on sale, adjusted basis, like kind exchange

1. On November 4, 2008, Ezra purchased 2,000 shares of DDD stock for $12,000. On June 12, 2010, Ezra sold the 2,000 shares for $9,000. On June 30, 2010, he purchased 1,000 shares of DDD stock for $5,000. What is Ezra's realized gain or loss and his recognized gain or loss on the June 12, 2010 sale? What is his basis in the st