Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year. Required: 1. What are the variable expenses per unit? 2. Using the equation method: a. What is th
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The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000. The expected machine hours are 6,000 and the expected direct labor hours are 80,000. The a
The Jung Corporation's budget calls for the following production: Quarter 1 45,000 units Quarter 2 38,000 units Quarter 3 34,000 units Quarter 4 48,000 units Each unit of production requires three pounds of direct material. The company's policy is to begin each quarter with an inventory of direct materials equal to 30 per
Assume that a division of Bose makes an electronic component for its speakers. Its manufacturing process for the component is a highly automated part of a just-in-time production system. All labor is considered to be an overhead cost, and all overhead is regarded as fixed with respect to output volume. Production costs for 10
How has FASB clearly designated a fair value approach with regards to business combinations? Does this tendency extend into other areas of accounting? How do the international financial accounting concepts align with this shift? 291 words
How do you describe and illustrate variance analysis and what type of meaningful conclusion can emerge from it? Offer a variance report and an exam question for the student to "self test" if they comprehend the material discussed.
How does the alternative minimum tax system differ from the regular tax system? How is it similar? Why did Congress implement the alternative minimum tax system? The starting point for computing alternative minimum taxable income is regular taxable income. What are some of the adjustments and preferences to regular taxable incom
What is the federal income tax owed by an investor in the 35 percent income tax bracket (15 percent tax rate on long-term capital gains and dividend income)? a. Megan sold stock A for a short-term capital gain of $5,500; sold stock B for a short-term capital loss of $2,100 b. Margaret sold stock A for a short-term capit
Company Z is considering upgrading their old machine with a new machine. EXISTING MACHINE: Cost = $100,000 Purchased 2 years ago Depreciation using MACRS over 5-year recovery schedule Current Market Value = $105,000 Five year usable life remaining 40% tax rate on ordinary and capital gains Earnings before Depreciatio
Could you please provide the solution for these three problems (18-10, 18-13, and QS 20-6). Question 1: (2 points) Exercise 18-10: Cost of goods sold computation L.O. C6, P1 Compute cost of goods sold for each of these two companies for the year ended December 31, 2009. (Omit the "$" sign in your response): Compute
Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65% and Terrell owns 35%. The business has the following results in the current year. Revenue $1,500,000 Business expenses 750,000 Charitable Contributions 50,000
Revenue from property taxes should be recorded in the General Fund a. When received b. In the period for which the taxes are levied c. At the time of eligibility d. When they are availabe for recognition e. In the period in which they are conusmed
Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year: Dept A Dept B Dept C Total Sales $270,000 $855,000 $910,000 $2,035,000 Less: VC 110,000 520,000 710,000 1,340,000 CM 160,000 335,000 200,000 695,000 Less: FC 70,000 90,000 95,000 255,000 Profit 90,
2. Reef office supplies is interested in estimating the cost involved in hiring new employees . The following information is available regarding the costs of operation the human resource department of reef office supplies in may when there were 60 new hires May Staff salaries 33000 Manager salary 8000 Office supplies 300
Why and when does the SEC require the use of the push down accounting method? Given an example.
ABC Inc. is expected to begin paying dividends in 5 years. The initial dividend is expected to be 0.75 per share, and dividends are expected to grow at 5.0%. How do I calculate the value of a share (today) if the required return on the company is 8.0%?
A. Table Factor X, Future Value $X Present Value Rate Time Compounding Frequency Table Factor Future Value a. $5,000 12% 2 yrs Annual b. $5,000 12% 2 yrs Semiannual c. $5,000 12% 2 yrs. Quarterly d. $5,000 12%
Need help preparing a contribution format variable costing income statement for each quarter, and how to reconcile the absorption costing and the variable costing net operating income figures for each quarter... file has better formatting. income statement for the first two quarters first quarter second quarter sales $480,00
46) Jake purchased a $200,000 crane for his construction business. He sold the crane for $145,000 after taking $110,000 of depreciation. What are the nature and the amount of gain or loss on the sale? On what tax form would the gain or loss be reported? 50) Davidson Industries, a sole proprietorship, sold the following as
Blue Steel Community has the following market value balance sheet: Assets/Liability Market value(in $ millions) Duration (in years) Federal Funds Deposit $31 0 Accounts Receicables 630
1. How can a budget affect company morale? How could the budgetary process be made more beneficial to avoid any negative impact a budgetary concept can portray? 2. How does contribution margin differ from controllable margin in a responsibility report for a profit center? How do controllable costs and non-controllable costs
What are the differences between the following components of taxable income? Provide at least one example of each. o Deductions for AGI and deductions from AGI o Gross income and AGI o AGI and taxable income o Tax deduction and tax credit o Personal exemption and dependency exemption 385 words plus form to give a
You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The CEO is not convinced that a managing accountant position is needed. Prepare a memo for the CEO on the following: Explain the objectives and characteristics of an internal accounting system.
Phil and Carol eloped (at 59 and 46) to New Mexico and then told the kids they were moving there permanently. After 5 years in downtown Albuquerque, Carol made one of her frequent flights east to visit family. She returned to find that Phil had rented out a bedroom, declaring they were in the "Bed and Breakfast" business. In
Pleasant View Hospital of British Columbia has just hired a new chief administrator who is anxious to employ sound management and planning techniques in the business affairs of the hospital. Accordingly, she has directed her assistant to summarize the cost structure existing in the various departments so that data will be availa
Morrisey & Brown, Ltd., of Sydney is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: MORRISEY & BROWN, LTD.
P7-7 Flexible budget for factory overhead Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead rate is based on normal capacity. Factory Overhead budget Fixed cost Depreciation o
Can you assist me with sales budget and production budgets and manufacturing budgets in detail? Sales and Production Budgets: The marketing department of Smith Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quart
Jim Smith, supervisor of the Harbor View Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Harbor View Machining Department Cost Control Report For the Month Ended June 30 Planning Budget Act
*****Please show all work******** Captain Johnny Whizbang Hamburgers issued 4%, 10-year bonds payable at 85 on December 31, 2010. At December 31, 2012, Captain Johnny reported the bonds as follows: Long - Term Debt: Bonds Payable...$ 300,000 Less Discount... (36,000) $264,000 Captain Johnny u