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Vermont Clock Works Job-Order Costing

Vermont Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $260,000. The firm employs 10 master clockmakers, who constitute the direct labor force. Each of these emp

Identify dependent variables (DVs) and independent variables (IVs).

For our purposes, the main distinction is between dependent variables (DVs) and independent variables (IVs). A DV, sometimes called a criterion, is the variable that we're trying to either predict or control. Some typical DVs in business settings are: * Market position * Profit * Job Satisfaction (Jobsat) * Intention to q

Robert's Medical Equipment: Annual Operating Income at 2 Product Prices

Robert's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $400,000 in setup costs each time. Plant c

Computing Accounting Calculations for HD Inc.

33. HD Inc. produced a variety of products for the computing industry. CD burners are among its most popular products. The company's controller, Kate Jergens, spoke to the company's president at a meeting last week and told her that the company was doing well, but that the financial picture depended on how product costs and net

Compute Break Even Conventional and Break Even ABC

Happy Daze Game Co. produces a wildly popular board game called Stump Me! The company is known for both its progressive and interesting board games and its willingness to embrace nontraditional business techniques. Recently, the company's controller, Renee McKim, suggested to the president that she accumulate data based on an ac

Gigi LeBlanc: Calculating Sales Price & Break Even

Gigi LeBlanc founded a company to produce a special bicycle suspension system several years ago after her son, who worked for a bicycle delivery service, was hurt in a riding accident. The market's response has been overwhelmingly favorable to the company's new suspension system. Riders report feeling that they experience fewer

Qualitative Impact of Change to JIT on Overhead Costs

Pritchett Enterprises manufactures hiking and outdoor equipment. The company's plan in western Colorado has recently seen dramatic changes in manufacturing process. Management is concerned that the current cost system no longer captures the impact of the diversity of activities involved in its production processes. As a result,

HITEC Manufacturers: Overhead Rate for Each Cost Driver

49. The HITEC Company manufactures multimedia equipment designed to be sold to universities. The company's southeastern plant has undergone production changes that have resulted in decreased usage of direct labor and increased usage of automated processes. As a result, management no longer believes that its overhead allocation m

Surfs Up: Calculate overhead rate, allocation, cost per unit, ABC

Spreadsheet please 45. Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding two boards are as follows: Products Direct Labor Hours per Units Annual Production Total Direct Labor Hours Big 1.5 10,000 boards 15,000 Small 1.0

Thiel Boots: Overhead Rates & Over or Under Applied Overhead

Thiel Boots Sales $1,000,000 Cost of goods sold direct materials 300,000 direct labor 160,000 est.overhead 240,000 700,000 Gross profit 300,000 Selling and adm expenses 175,000 Net income $125,000 Expected to sell 10,000 pairs of boot est. of production

Calculate incremental net income; investment in new receivables

Show all of your work. Q3. The Tanner Corporation is a highly successful marketer of raw leather to producers of various lines of leather products. The company is considering expanding by selling to makers or custom leather automobile seats. Tanner's marketing VP Estimates that this market can add $700,000 in new sales.

prepare schedules for five accounting problems

Company A is a wholesale company that purchases items from manufacturers and sells them to retail establishments. On December 31, 2010 Company A had the following in ending inventory: Product Code Quantity Cost Each Current Replacement Cost Each YZ 1,970 $58 $63 CT 3,280 38 36 FA 1,640 51 57 GG 660 109 125 IR 1,3

When must a taxpayer pay AMT? What is AMT?

When is a taxpayer required to pay the AMT? What are the differences between the AMT and regular tax? What are the differences between tax preferences and adjustments concerning the AMT? What are some examples of each?

Book and tax depreciation

Book vs. Tax (MACRS) Depreciation Elwood Inc. purchased computer equipment on March 1, 2010, for $36,000. The computer equipment has a useful life of 10 years and a salvage value of $3,000. For tax purposes, the MACRS class life is 5 years. a) Assuming that the company uses the straight-line method for book and tax purpo

Identify the following costs as fixed or variable.

Identify the following costs as fixed or variable. Costs related top plane trips between San Diego, California, and Orlando, Florida, follow. Pilots are paid on a per trip basis. a. Pilots' salaries relative to the number of trips flown. b. Depreciation relative to the number of planes in service. Cost of refreshment re

Special Sales Orders for John Inc.

I need to understand this problem. Accept special sales orders? John Inc. is presently operating at 50% capacity and manufacturing 50,000 units of a patented electronic component. The cost structure of the component is as follows. Raw material $ 1.50 per unit Direct Labor 1.50 per unit Variable Overhead 2.00 per unit Fi

Various Approaches for Setting Transfer Prices

I need to describe and evaluate the various approaches for setting transfer prices. How can the use of different approaches between the selling and buying divisions be reconciled? It should be with a proper referencing as well. Thanks.

Comment on SEC has cracked down on what is referred to as "cookie jar reserves".

The Securities and Exchange Commission (SEC) has cracked down on what the SEC fondly refers to as "cookie jar reserves." In the eyes of the SEC, 'cookie jar reserves' are estimated liabilities that are too high and unrealistic. Then these unrealistic accruals can be dipped into during the bad times; put a cookie away in the good

Forensic Accounting: Scope of the audit for Torpus

Situation: Torpus is a small manufacturing company that produces and sells custom Plexiglas canopies for small airplanes and speed boats. In the most recent fiscal year, in the midst of one of the worst recession in more than 30 years, it reported a profit of about $40,000 on an asset base of $309,238. The company has been i

Relevant Cashflows for a Financial Analysis

Case: You purchase a truck for use in your business. It will replace an older truck you currently use for the same delivery purposes but will cost less to maintain (gas & service). What are the relevant cashflows for financial analysis? 1. Determine the cashflow for 1 year . Use the following facts: a. The New Truck Costs

Calculate the standard deviation of a three-asset portfolio

Calculate the standard deviation of a three-asset portfolio with the following data: Funds:............................S&P 500................Intermediate Treasury...................European Weights..............................50%.................................35%.....................................15% Mean.............

Tanner Bay's predetermined overhead rate; XYZ's total costs for Job #219

Tanner Bay Inc. has two departments, Assembly and Packaging. The company uses a job order costing system and computes a predetermined overhead rate in each department. The Assembly Department bases its rate on machine hours and the Packaging Department bases its rate on direct labor hours. At the beginning of the year, the compa

Accounting: Concepts & Applications


Ski Pro Corporation: Activity-Based Costing & Process Costing

Consider the following scenario: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line ha