Frost Pane a manufacturing company of windows and doors shows the following information as of 12/31/07 Advertising expense -------------------------------- $7,200 Assemblers wages -------------------------------- $30,120 Depreciation of machinery --------------------------1,840 Factory utilities ---------------------------
1. What other examples of cost drivers can you think of? 2. It would seem to me that payroll would be considered as variable when it is subject to change. One example that comes to mind is seasonal hires. Local retailers often beef up their workforce during the holidays. To me this would be an example of when payroll might
ANHEUSER BUSCH AND MANAGERIAL ECONOMICS In 2008, the Board of Directors and shareholders of Anheuser Busch agreed to be acquired by a Belgian Brewer (InBev). Prior to the merger, InBev made many pledges to AB regarding how the company would operate after the merger, how its employees would be treated, and so on. With some st
What is the amount of direct materials cost incurred by LP Production: Cost Amount Advertising-------------------------- $7,500 Assembly line workers wages--- $33,800 Depreciation-Machinery---------- $2,800 Factory utilities--------------------- $9,120 Machinery repairs &
which of these accounts are classified as direct product cost: advertising expense factory insurance cost of LED display cost of plastic cases salary of company accountant wages of assembly workers
1. What is the significance to working capital management of matching sales and production? What is the significance to working capital management of matching payables with receivables? 2. By using long-term financing to partially fund current assets, a company may have less risk but lower profits than a firm with a normal fi
What is your view on the following statements: Managers do not give orders. Managers do not make decisions. Managers spend a lot of time listening. The governing board's calendar ultimately forces a decision. Imagination is an important managerial skill.
1. I've always noticed certain vehicles (primarily imports) tend to hold their value longer than others. How will or does this affect when depreciation a vehicle especially if you use the depreciation calculator for this method. Wouldn't it conflict with the value of the vehicle when you research this information in Kelly Blue
Use the following information for the next 2 questions. Direct Direct Direct Materials Labor Cost Labor Hours Job 400 $200 $800 40 Job 401 250 200 10 Job 402 500 600 32 O'Hare Sisters Manufacturing uses job costing and applies overhead using a normal costing system using direct labor hours as the allocation base. This p
Review the case study "Tel-Comm-Tek" at the end of Chapter 20 in the textbook. Address the following components in a well-written response. Remember to cite any sources used, including the textbook (APA format is not required, but it is recommended). What individual characteristics and qualifications should the company consi
The Fashion Shoe Company operates a chain of women shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive in
New machinery was installed to replace a number of employees, who were paid an extra month's wages and dismissed. This amount was added to the cost of the machinery. Discuss the propriety of the charge. If it was improper, describe the proper treatment.
Chapter 23 introduces other techniques for evaluating managerial performance. The concept of decentralization and its relationship to responsibility accounting will be explained. You will learn how to calculate and interpret return on investment and residual income. Finally, you will study approaches used to establish the price
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
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
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
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
Poor decision making may result when acceptable prices are determined by adding a fixed percentage to the "full cost" of a product when that "full cost" includes a unitized fixed cost. The lesson is that any selling price above the contribution margin will add to the wealth of the firm. This being the case, is there a danger in
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
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
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
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
The part 3 answer is not matching the the check answer. Please help. Cost per equivalent unit; costs assigned to products. Fairfax Company uses weighted-average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the proces
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?
Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Work in process, April 1-10,000 units: Direct material: 100% complete, cost of ..........................................................
See attached files. M19-18 Indirect Cost Allocation: Direct Method P19-26 Selecting Cost Allocation Bases and Direct Method Allocations P19-27 Evaluating Allocation Bases and Direct Method Allocations
How a Company cans choose the Best Cost Driver? Give an explanation and an example.
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
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
How can we know the Fixed Cost Behavior? Give a full example.