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Management Accounting

Woods and Waters Financial and Managerial Analysis

Please see attached spreadsheet for data. The Woods and Waters Company has two operating divisions, the Service Division and the Irrigation Division. The company evaluates the performance of its divisions using the Return on Investment (RoI) measure. The following information pertains to the two divisions as of the end of t

Finding the Acceptable Manufacturing Cost

Direct material = $25 Direct labor = $30 Manufacturing overhead = $45 ------------------------------- Total Cost = $100 Muck Duck Company wants to sell All-Body swimsuit. Market study showed that it could sell for $110/each. What is the highest acceptable manufacturing cost Muck Duck would be willing to incur to produc

Managerial Accounting

1. The type of costing that provides the best information for breakeven analysis is: 2. Gyro Gear Company produces a single product, a special gear used in automatic transmissions. Each gear sells for $28, and the company sells 500,000 gears each year. Unit cost data are presented below: Variable Fixed Direct mate

Cost Classification: Variable vs. Fixed

Please see ** ATTACHED ** file(s) for complete details!! Costs Product Period Variable Fixed Direct Indirect Raw materials Staples used to secure packed boxes of product Plant janitors' wages Order processing clerks' wages Advertising expenses Production workers' wages Production supe

Cash Conversion Cycle in Sharam Industries

Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how long is its average collection period? If its average payment period is 30 days, what is its cash conversion cycle? Place all this information on a time line.

Comprehensive Standard Cost Variances

"It certainly is nice to see small variance on the income statement after all the trouble we've had lately in controlling manufacturing costs," said Sarah Jones, VP Shore INC." The $12,250 overall manufacturing variance reported last period is well below the 3% limit we have set for variances. We need to congratulate everybody o

Lock Box, Cash Conversion Cycle, Interest rate

1. What are the expected annual savings form a lock-box system that collects 300 checks per day averaging $800 each, and reduces mailing and processing times by 3.0 and 1.5 days respectively, if the annual interest rate is 7 %? 2. What is the receivables period for a firm with annual sales of $100 million, $8.4 million in ave

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

Multiple Choice

1. Accrued liabilities are disclosed in financial statements by: a. Showing the amoutn among the liabilities but not extending it to the liability total b. Appropriately classifying them as regular liabilities in the balance sheet c. A footnote to the statements d. An appropriation of retained earnings 2. An imp

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

Schafer Company: Calculate year 1 annual net cash inflow

Schafer Company is considering an investment in equipment costing $30,000 with a five-year life and no salvage value. Schafer uses straight-line depreciation and is subject to a 34 percent tax rate. The expected net cash inflow before depreciation and taxes is projected to be $15,000 per year. The year 1 annual net cash inflow i

Anaconda Mining Company: Estimate shipping costs for May

Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April. Shipping costs for 12,000 tons to be shipped in May would be expected to be: $548,780 $549,020 $594,000 $598,500

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

variable cost per unit.

PLEASE SEE ATTACHMENTS 7. From PE 21-1A what is the variable cost per unit? $28 per unit $50 per unit $72 per unit $36 per unit 8. From PE 21-2A what is the contribution margin ratio? 20% 18% 10% 9% 9. From PE 21-3A what is the break-ev