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Determining Allowable Charitable Contribution Deductions

In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations. A. Charitable Chubbs contributed an item of inventory from his sole proprietorship to a public charity for its use. The fair market value of the asset was $800

"Rick's Bags"

Rick's Bags manufactures both golf bags and tennis totes. Fixed manufacturing overhead is budgeted to be $187,200, variable manufacturing overhead is budgeted to be $1.10 per direct labor hour, and fixed selling and administration costs are budgeted to be $346,000. Each golf bag is expected to use 2.5 direct labor hours and each

Calculations Around a Water Plant's Overhead

The Densain Water plant in Naples, Florida, bottles purified and flavored waters in a variety of sizes (20, 36, 48, and 64 ounces) for sale through vending machines and retail stores. Volume is measured as bottled ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million, and variable manufacturin

Using regression for high-low method of variable costing

Question 7: (10 points) Exercise 5-5 (Appendix 5A) Least-Squares Regression [LO5] EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. Management would like to better understand the behavior of the company's costs. One of those costs is the cost of washing cars. The comp

Proper Interpretation of Variable Overhead Spending

You recently were hired as an accountant for Northern Pacific Manufacturing. One of your responsibilities is to develop and maintain a standard costing system for overhead as well as materials and labor standard for the company. During a recent planning meeting, the company's production manager expressed concern regarding the

Annual Payment and Principal Balance

P 3-4 Just One, Inc, has two mutually exclusive investment projects, P and Q, shown below. Suppose the market interest rate is 10 percent? Project Initial Investment Year 1 Year 2 IRR NPV (r = 10%) P -$200.00 $140.00 $128.25 22.4% $33.26 Q -100.00 80.00 56.25 25.0 19.2

Taxable payroll

1- Timmons Co., which has a taxable payroll of $500,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Timmons Co.? a. $58,500 b.

Overhead Costs and Transfer Price

Company XYZ attempting to determine costs associated with various jobs. Current production records show the following information for two recent jobs: Job 1 Job 2 Direct materials costs $15,600 $31,200 Direct labor costs: Assembly Department $ 3,900 $ 5,200 Cutting Department $10,400 $ 2,600 Machine hours used in t

Variable/ fixed/ mixed costs

The Salvage Company incurred the following costs for the month of August when it observed an activity level of 10,000 units. Activity level in units --------- 10,000 Variable Costs ----------------- $30,000 Fixed Costs -------------------- $50,000 Mixed Costs -------------------- $40,000 Total Costs -------------------- $

Holes Company: Variable Costs

The Holes Company realizes 3 products from a single mining process: Products A1, A2, and A3. Each product may be sold as is in its raw form or processed further into a more refined state. The additional processing requires no expanded capacity and production costs are entirely variable. Sales values and cost information are:

Net Operating Loss (NOL)

Shep King Corporation reported the following pretax financial income (loss) for the years 2000 through 2007. Pretax Financial Income (Loss) Tax Rate 2000 $80,000 30% 2001 $34,000 35% 2002 $96,000 50% 2003 ($300,000) 40% 2004 $180,000 40% 2005 $60,000 40% 2006 $210,000 40%

Compute Full Cost and Processing

Joint Products, Inc., produces two joint products, X and V using a common input. These are produced in batches. The common input costs $8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred. There are no beginning inventories. The accompanying data summa

Allocation System at Reed Park

Reed Park, Inc., is a bottler/supplier of bottled spring water to both commercial and residential customers. Reed Park's corporate headquarters is located in Clearwater Springs, Colorado. It operates distribution centers (DCs) in three territories throughout the metro Clearwater Springs area. The company began by selling to res

Allocation of Costs..

Problem 7-8 "Winterton Group" The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, each office receives central services, including information technology, marketing, accounting, and

Two Short Accounting Problems

Please help with the following problems. 1) On October 1, 2006, Parton Industries borrowed $12 million cash to provide working capital. The loan was made by Second Bank under a short-term line of credit. Parton issued an 8-month, "noninterest-bearing note." 8% is the bank's stated "discount rate." Parton's fiscal period is t

Taxation II

1. Robert Reed, a bachelor, maintains his parents in a nursing home. They have no income of their own and are completely dependent on their son. His parents are 75 and 72 years of age. Robert has the following sources of income. Salary... $45,000 Interest on municipal bonds... 750 Interest on bank accounts... 800 Dividends

Study Guide

Please help with this study guide. Study Guide Managerial Accounting 1. Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold? A) 3.0 B) 2.0 C) 1.5 D) None of the above 2. Select

Calculating Depreciation and Book Value

Your firm uses return on assets (ROA) to evaluate investment centres and is considering changing the valuation basis of assets from historical cost to current value. When the cost of the asses is updated, a price index is used to approximate replacement value. For example, a metal fabrication press, which bends and shapes metal

Activity Table for Total Costs

Question 1: (11 points) Exercise 5-1 Fixed and Variable Cost Behavior [LO1] Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $0.26. Requirement 1: Fill in the following table with your


Hobby Loss Presumptive Rule. Rachel Schutz is a high school English teacher. In her spare time, she likes to make her own body lotion, lip-gloss, and bath and shower gel. She uses the bath products herself and gives them to her friends and relatives as gifts. In 2005, Rachel started attending arts and crafts festivals to sell

PROBLEM I6-34: Calculate taxable income for Kent

For vs. from AGI. During the current year, Kent, a single taxpayer, reports the following items of income and expense: Income: Salary $170,000 Dividends from Alta Corporation 800 Interest income from a savings account 1,500 Rental income from a small apartment he owns 8,000 Expenses: Medical 6,000 Interest on a prin

PROBLEM I4-43 Re: Employee Benefits includable in income

Employee Benefits. Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: Medical and health $3,600 Disability 300 Group term life (face amount is $40,000) 200 During the year,