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Accounting

Variable Cost Element, Fixed Cost Element & Total Overhead

Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs (in Japanese yen, denoted ¥) at high and low levels of activity for recent

Managerial Accounting - Cost Accounting

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $800 and the variable cost per cup of coffee served is $.67. Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a cof

payables, collections, manufacturing costs

1. Wateredge Corporation has budgeted a total of $361,800 in costs and expenses for the upcoming quarter. Of this amount, $45,000 represents depreciation expense and $7,300 represents the expiration of prepayments. Wateredge's current payables balance is $265,000 at the beginning of the quarter. Budgeted payments on current paya

Alternative Income Statements and Decision Making

Question 1: What are some examples of how alternative income statements are used in decision making? What are the two types of approaches in using alternative income statements? What is cost behavior and how does it impact a financial analysis? What processes does your company or a previous employer use to analyze cost behavior

Calculating gross profit from installment sales - Charter Corporation

Calculating Gross Profit from Installment Sales Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its installment sales. The following data was obtained for sales made during 2011 and 2012: 2011 2012 Installment sales 362,000 345,000

Operating Income, Profitability & Estimating Operating Cost

Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The following profitability data apply to five customers:

Contribution Margin and Risk

1- Controllable margin is used as a refined measure of strategic business unit reporting that is best described as: A. Margins reported to strategic business unit managers related to revenues and costs specifically within the managers' control and responsibility. B. Contribution margin net of controllable fixed costs (those co

Weighted-Average Method for Accounting

Please see the attached file. Boxes underlined in yellow require an answer as well as a formula for the answer using the information provided. Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is add

Indicate whether expenditure should be Capitalized or Expensed

For each of the following items, indicate whether the expenditure should be capitalized (C) or expensed (E) in the period incurred. (a) Improvement (b) Replacement of a minor broken part on a machine. (c) Expenditure that increases the useful life of an existing asset. (d) Expenditure that increases the efficiency and effe

Activity-Based Costing

Activity-Based Costing. Frumerville Hospital has always determined the full cost of serving patients by accounting for the direct and indirect costs of all hospital operations. The hospital uses the step-down method of allocating indirect costs: The costs of nonrevenue producing departments are allocated in sequence

Newroute Manufacturing: Regression, activity-based costing, choosing cost drivers

Newroute Manufacturing has been using activity-based costing to determine the cost of product X-678. One of the activities, -Inspection, - occurs just before the product is finished. Newroute inspects every 10th unit, and has been using 'number of units inspected' as the cost driver for inspection costs. A significant compone

Policies

Why should information systems engineers or managers develop policies?

Comprehensive Variance Analysis Review

Sonnet, Inc. has the following budgeted standards for the month of March 2010: Average selling price per diskette $5.00 Total direct material cost per diskette $0.85 Direct manufacturing labor Direct manufacturing labor cost / hour $15.00 Average labor productivity rate (disks / hour) 300 Direct marketing cost per unit $

Activity-Based Costing, Batch-Level Variance Analysis

Activity-Based Costing, Batch-Level Variance Analysis Rica's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertai

Valuation of certain property investments

In 2010, the FASB introduced a new standard for the valuation of certain property investments. Previously such investments were valued at cost. The new standard requires valuation at fair value with all gains and losses being taken to the income statement. This situation is to be treated as an acceptable change to an accountin

Cost Estimating - Miller Fixtures

Methods of Estimating Costs-Account Analysis: Miller Fixtures. The accounting records for Miller Fixtures report the following costs for the past year. Direct materials: 210,000 Direct labor 175,000 Variable overhead 154,000 Production was 210,000 units.

Hierarchy of data

What is the hierarchy of data in databases? Provide an example relating to an accounting application.

Recognition of Profit for Long-Term Contracts

Recognition of Profit for Long-Term Contracts Andre Agassi Construction Co began operations January 1, 2008. During the year, Agassi entered into a contract with Lindsey Davenport Corp. to construct a manufacturing facility. At the time, Agassi estimated that it would take 5 years to complete the facility at a total cost of

Variance analysis

Problem 21-1 Beta Division of Gotham Industries, Inc., makes three products. Last month's budgeted and actual sales and margins for these products were as follows: Budget Unit Sales Unit Margin Product 1 3200 10.00 Product 2 1700 13.00 Product 3

Absorption, variable and throughput costing

Great Outdoze, Inc. manufactures high-quality sleeping bags, which sell for $130 each. The variable costs of production are as follows: Direct material ........................................................................................................................................ $40 Direct labor ...................

Accounting 1

Select the correct answer: 1. A firm has used LIFO for several years during which costs have trended higher. If this firm achieves a substantial reduction in inventory quantities in 2011 by selling more merchandise than it purchases, the effect on 2011 net income of the inventory reduction, compared to having no change in inv

Critically evaluate this allocation method

Please help with the following problem. Direct Method Service Departments Profit Centers Service Dept. Electricity Water Ingots Stainless steel Total Electricity 2500 kwh 2500 kwh 3000 kwh 2000 kwh 10000 kwh Water 1000 gal 800 gal 1000 gal 2000 gal 4800 gal The total operating costs of the two service departments

Required Information for a Government's CAFR

Both notes to the financial statements and required supplementary information (RSI) must be included in a government's CAFR. What, then, does it matter if information is provided in notes as opposed to RSI?