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Management Accounting

Activity Based Cost Drivers: EyeGuard Equipment Inc

Resource and Activity-Based Cost Drivers EyeGuard Equipment Inc (EEI) manufactures protective eyewear for use in commercial and home applications. The product is also used by hunters, home woodworking hobbyists, and in other applications. The firms has two main product lines?the highest-quality product is called Safe-T, and a

Fixed Cost Examined

1) If fixed costs suddenly increase, how will that change the graph of fixed costs if activity, units or volume is on the x-axis and dollars are on the y-axis? 2) Indicate whether the following statement is true or false, then support your view. If we graphed fixed costs per unit, it would appear as a straight, horizontal

Relevant cost of making versus buying

James Co. has two divisions,A and B,each operate as a profit center.A charges B $35 per unit for each unit transferred to B. Other data for A are below: Variable cost per unit $30 Fixed costs $10,000 Annual sales to B 5,000 units Annual sales to outsiders

Discussion questions Management

1. The divisional structure enables firms to pursue complex corporate diversification strategies by delegating different management responsibilities to different individuals and groups within a firm. Will there come a time when a firm becomes too large and too complex to be managed even through a divisional structure? In other w

Quantitative Reasoning for Business

a. Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester following the instruction in my post in Materials. b. Use Excel's "scatter plot" graphing func

With the information given, compute the cost of direct materials

1. A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used Goods in Process Inventory Beginning Balance. 100,800 D.M. ? D.L. ? O.H. ? F.G. ? End Balance 131,040 Factory Overhead 93,24

How to calcuate the selling cost is shown.

Lim Clothing Company manufactures its own designed and labeled sports attire and sells its products through catalog sales and retail outlets. While Lim has for years used activity-based costing in its manufacturing activities, it has always used traditional costing in assigning its selling costs to its product lines. Selling cos

Managerial accounting: 25 MCQ

1. The Euro Company sells two kinds of luggage. The company projected the following cost information for the two products: The company's total fixed costs are expected to be $280,000. Based this information, what is the combined number of units of the two products that would be required to breakeven (round your answer to th

Capacity Costs: K's Cornerspot. Recompute costs and choose a cost driver

Capacity costs K's Cornerspot, a popular university eatery in a competitive market, has seating & staff capacity to serve about 600 lunch customers every day. For the past 2 months, demand has fallen from its previous near-capacity level. Concerned about his declining profit, K decided to take a closer look at its costs. He c

Managerial Accounting E10-1: preparing a standard cost card for Alpha SR40

Exercise 10-1 Setting Standards; Preparing a Standard Cost Card [LO1] Svenska Pharmicia, a Swedish pharmaceutical company, makes an anticoagulant drug. The main ingredient in the drug is a raw material called Alpha SR40. Information concerning the purchase and use of Alpha SR40 follows: Purchase of Alpha SR40: The raw

Managerial accounting

A company currently operates two stores, Uptown and Midtown: Last year's results Uptown Midtown Sales revenues $300,000 $400,000 Variable costs (120,000) (140,000) Contribution margin $180,000 $260,000 Store related fixed costs (100,000) (100,000) Allocated common fixed costs (90,0

Cintax Cost Behavior and Decisions

Cintas Company produces a line of cleaning products for both industrial and household use. While most of the company's products are processed independently, a few are related, such as Pearl and Satin Polish. Pearl is an abrasive cleaner used in industrial application. It costs $1.60 per pound to produce and sells for $2.40

Managerial Accounting - Part Six

1. The management of Giammarino Corporation is considering introducing a new product--a compact barbecue. At a selling price of $78 per unit, management projects sales of 10,000 units. Launching the barbecue as a new product would require an investment of $100,000. The desired return on investment is 11%. The target cost per bar

HGTC Company uses a standard cost system for its single product.

HGTC Company uses a standard cost system for its single product. The following data are available: Actual experience for the current year: Purchases of raw materials (15,000 yards at $13) $195,000 Raw materials used 12,000 yards Direct labor costs (10,200 hours at $10) $102,000 Actual variable overhead

Interactive case 5

In January 2007, Teresa Leal was named treasurer of Casa de Diseño. She decided that she could best orient herself by systematically examining each area of the company's financial operations. She began by studying the firm's short-term financial activities. Casa de Diseño is located in southern California and specializes in

Management Accounting: Contribution Margin

Carpenter's Mate, Inc. manufactures electric carpentry tools. The production department has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and unit costs for three different drill models are as follows:

Management Accounting: Special Orders

Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboards

How would you use financial ratios to make managerial decisions?

You have been given the financial statements and asked to analyze the financial performance of your division. Other managers have suggested you use financial ratios in your analysis. What are financial ratios? Which ratios might you use in your analysis? List them and explain what information they provide. How would you use them

Cost Variance Analysis

(For the following, positive values are unfavorable variances and negative values are favorable variances) Cost Standards for Product X: Direct Material 3 pounds @ $2.53 per pound $7.59 Direct Labor 5 hours @ $7.53 per hour 37.65 Units produced 7,795 Direct material purchased 2

Calculate the cost

The production processes involved in making maple syrup also can produce maple sugar. Vt. Sugar Enterprises wishes to produce only syrup, but on occasion some sugarging takes place. Production for April produced the following results: Syrup Sugar Total Units produced