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Management Accounting

Cost Allocation 7-8 Jolsen International

7th edition of Accounting for decision making and control, Jerold Zimmerman. Chapter 7 questions 7-8 Jolsen International: Jim Shoe, chief executive officer of Jolsen International, a multinational textile conglomerate, has recently een evaluating the profitability of one of the company's subsidiaries, Pride Fashions, I

Forging Department: Cost Per Equivalent Units

The following information concerns production in the Forging Department for June. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $54,590 of direct materials. ACCOUNT Work in Process - Forging

Management accounting practice problems

Study guide questions...attached. Question 1 Knapple Company has a variable cost percentage of 35% on a product that sells for $25 per unit. Fixed costs are $40,000. Knapple wants to know how many units must be sold (a) to break even and (b) to earn a profit of $12,000. Ignore income taxes. Question 2 Baldw

First stage allocation of overhead costs for Advanced Products

Advanced Products Corporation has supplied the following data from its activity-based costing system: Overheard Cost Wages and salaries................................$300,000 Other overhead costs.............................100,000 Total overhead costs............................$400,000 Activity Cost Pool

Management Accounting (Winter Games Case Study)

Winter Games manufactures a competitive line of skis and sells its skis to retailers at a price of $225 per pair. Based on an annual volume of 5,000 pairs, the cost per pair is $185: Direct labor ($75 per pair) $375,000 Direct material ($60 per pair $300,000 Overhead Fixed* $100,000 Varia

Comparison of Alternative Joint-Cost-Allocation Methods

The Chocolate Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: Chocolate-powder liquor base and Milk-chocolate liquor base. These two intermediate products become separately identifiable at a single split off point. Every 1,500 pounds of cocoa be

Management accounting: Morgan Co, Sweet Shoppe Creamery

At the end of 2011, Morgan Company had two jobs still in process with a total balance of $2,500. According to the respective job cost sheets the jobs had $600 and $650 in direct materials costs and $200 and $50 in direct labor costs. What overhead rate is Morgan using? A. 25% of direct labor costs. B. 50% of direct material

Managerial Accounting for CH Industries: Calculation of variances

Please see attached file for better format. Instructions: You may work this in Excel or as a solution in this word document. Be sure to label your file with your name in the title. The following standard costs were developed for one of the products of CH Industries: STANDARD COST CARD PER UNIT Direct materials

Airline pricing structure; Cost accounting exercise 1-9

Airlines are well known for using complex pricing structures. For example, it is often (but not always) less expensive to buy a ticket in advance than it is on the day of the flight. However, if the airline offered this lower ("discount") fare for all seats, it could not remain in business. Why offer fares with different prices?

Identifying Variable Costs

commission paid to Avon representatives recurring advertising cost by a physicians office the cost of hardware installed on sailboat the cost of rent on a deVry facility shipping cost from a book distribution center Insurance on a factory assembly facility wages paid to temporary personnel depreciation of assembly line fa

Cost Data for Financial Reporting and Special Order Decisions

Better format attached MA17-43 Cost Data for Financial Reporting and Special Order Decisions Friendly Greeting Card Company produces a full range of greetings cards sold through pharmacies and department stores. Each card is designed by independent artists. A production master is then prepared for each design. The production

Standard Cost, Overhead Rate and Price Variance

See the attached file. FOURTH, INC. HAD THE FOLLOWING STANDARD COST CARD FOR ITS PRODUCT A: DIRECT MATERIALS 2 LBS @ $4.00 PER POUND $ 8.00 DIRECT LABOR 4 HOURS @ $8.00 PER HOUR. 32.00 VARIABLE OVERHEAD 4 LABOR HOURS @ $5.00 PER LABOR HOUR 20.00 FIXED OVERHEAD 4 LABOR HOURS @ $6.00* PER LABOR HOUR

Managerial Accounting: Chicken Bones

Ganong Bros. Ltd., located in St. Stephen, New Brunswick, is Canada's oldest independent candy company. Its products are distributed worldwide. In 1885, Ganong invented the popular "chicken bone," a cinnamon flavored, pink, hard candy jacket over a chocolate center. The home page of Ganong, listed on the next page, includes info

Outside Supplier, Production Budget, Overhead Rates, & Price

Question 1 Solomon Company manufactures 20,000 components per year. The manufacturing cost per unit of the components is as follows: Direct materials $10 Direct labor 14 Variable overhead 6 Fixed overhead 8 Total unit cost $38 Assume that the fixed overhead reflects the cost of S

Cash Conversion Cycle

13. Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, wh

Managerial Accounting and Market Costs of Goods

PLEASE DON'T OMIT ANY OF THE QUESTIONS. THANK YOU 1. Write (T) for True and (F) for False on the blank space before the number: ____ [1a.] Factory heating and air conditioning should be considered a product cost in a manufacturing operation. ____ [1b.] In a manufacturing company, cost of goods manufactured consists

Managerial Economics - Supply and Demand for lawyer's salaries in the future

The Wall Street Journal reported that recent law school graduates were having a very difficult time obtaining jobs in the legal profession. Many law schools said that 10 to 20 percent of their graduates still had not found jobs. The historical average had been 6 to 8 percent. Many recent graduates were taking jobs outside law at

Managerial Economics: Opportunity Costs for Burton Cummings tractor-trailer rig

When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow truckers that his revenues were typically $25,000 per month, while his operating costs (fuel, maintenance, and depreciation) amounted to only $18,000 per

Managerial accounting - budgeting

Budgets are pervasive across all types of organizations.Outline the budgeting process in a company or by using your imagination,explain the logical flow represented in the master budget, beginning with the organization goals and ending with the pro forma financial statements.

total cost of new business

Fast Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were

DS Company has identified the following cost pools and activity rates

3. DS Company has identified the following cost pools and activity rates Activity Cost Pool Activity Rate Supporting direct labor $4 per direct labor hour Machine processing $3 per machine hour Machine setups $30 per setup Production orders $11 per order Shipments $98 per shipment Product sustaining $750 per product Ac

Cost Allocation and MRI Images

MRI at Memorial Hospital has the following projected operating data for next year. Fixed costs Variable costs Total costs Equipment lease $350,000 $350,000 Supplies $97,000 $97,000 Labor $145,000 $182,000 $327,000 Hospital Admin $63,000 $63,000 Occupancy $48,000 $48,000 Total Project

ACCT Problem III Absorption costing Variable Costing

See attach file for the problem. PROBLEM III Third, Inc. which makes a single product had the following information for 2010. Selling Price $8.00 per unit Denominator (Planned production) 100,000 units Production 90,000 units Sales 80,000 units Beginning Inventory -0- Fixed Manufactur

ACCT Problem II Service Department Allocations

See attach file for the problem. PROBLEM II Second, Inc. has the following departmental cost summary: __SD I__ _SD II_ _SD III _PD I__ _PDII_ Total Overhead cost $100,000 $20,000 $15,000 # Employees 64 136 24 400 440 Sq Ft Space 500 300 600 2000 2400 Labor

Managerial economics

2. Assume the above graph depicts a firm that tries to maximize profits or minimize losses. Also assume this firm has a Total Cost Equation of 150 + 20Q + .5Q2, and a demand curve that can be described by the equation P = 60 -1Q Answer the following questions on the above firm, and show your work to receive full credit. A. How

Cash Conversion Cycles for Edison Inc.

Edison Inc. has annual sales of $49,000,000, or $44,100,000 a day on a 365-day basis. The firm's cost of goods sold are 75% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable. The firm is looking for ways to shorten its cash conversion cycle. Its CFO has proposed new policies that

Calculate the fixed costs, variable costs and changes in scenarios

5. Calculate the unknowns for the following independent situations. All given activity levels are within the relevant range. A) Total fixed costs for Company A are $250,000. Total costs, both fixed and variable, are $378,000 for Company A when 40,000 units are produced. Calculate: 1) variable cost per unit 2) fi

Necessary Steps with Evaluating the Use of Financial Accounting

Please assist in providing information for a paper addressing the necessary steps involved with evaluating the use of financial accounting information in making informed and ethical business decisions using comparative analysis and financial ratios. Must use APA and references.