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    Management Accounting

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    Managerial Accounting: Midway Manufacturing, Inc.

    Midway Manufacturing, Inc. manufactures two models of valves: a regular model and a deluxe model. The deluxe model, introduced two years ago, has been very successful. It now accounts for more than half of the firm's profits, as evidenced by the following income statement for last year: Total Regular Deluxe Sal

    Compute cost of production changes: margin and units

    5. Speedy Dress Manufacturing has two workstations, cutting and finishing. The cutting station is limited by the speed of operating the cutting machine. Finishing is limited by the speed of the workers. Finishing normally waits for work from cutting. Each department works an eight-hour day. If cutting begins work two hours earli

    Salary costs for new position: product cost, selling expense

    You have just been hired by Corporation to fill a new position that was created in response to the upcoming launch of a newly developed product. It is your responsibility to design an advertising campaign for this product's debut in Mexico and Central America. The company is unsure how to classify your annual salary in its co

    Managerial accounting Uncertain Estimate and Break-even Number

    John needs some extra income to make ends meet. He could work overtime in his current job and make an additional $2,000 per year. Alternatively, he could use the overtime hours towards an Internet business. He is considering the wholesaling of baseballs to major-league-baseball teams over the Internet. If he is to do this, he

    Cost MCQ: Imperial Products, Pershing Co, Audio Labs, First Image

    Same information applies to question 1 & 2 Imperial Products has a budget of $600,000 in 20x1 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $40,000 in variable costs. The new method will require $12,000 in training costs and $80,000 in annual equipment costs. Management i

    Target Costing: Unit Cost

    Calculation Company is contemplating introducing a new type of calculator to complement its existing line of scientific calculators. The target price of the calculator is $75; annual sales volume of the new calculator is expected to be 500,000 units. Calculation has a 15% return-on-sales target. Compute the unit target cost per

    Direct Cost and Indirect Cost: Product Cost

    What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be included in product cost? Why or why not? Please provide 300 words and references.

    Managerial Accounting

    Please see the attached file. 13. R Corp. applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $1.20 per machine-hour and the denominator level of activity is 6,600 machine-hours. In the most recent month, the total act

    Managerial Accounting

    1. The variance that is most useful in assessing the performance of the purchasing department manager is: A) the materials quantity variance. B) the materials price variance. C) the labor rate variance. D) the labor efficiency variance. 2. Matt Company uses a standard cost system. Information for raw materials for Pr

    Gomez tax shield, value of equity; Trumbull value of debt and yield

    1. Gomez computer systems has an EBIT of $200,000, a growth rate of 6%, and its tax rate is 40%. In order to support growth, Gomez must reinvest 20% of its EBIT in net operating assets. Gomez has $300,000 in 8% debt outstanding, and a similar company with no debt has a cost of equity of 11%. According to the MM extension wi

    Climate Control Inc: Make or Buy a Component

    Please see attached file. Climate-Control, Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Climate-Control for $20 per unit. To evaluate this offer, Climate-Control, Inc., has gath

    Cost allocations relevant for Corp of Engineers

    US Army Corps of Engineers - Walla Walla Project retrieved May 25, 2009 from: http://www.nww.usace.army.mil/lsr/reports/misc_reports/allocate.htm City of Seattle Budget for 2009 - 2010 retrieved May 25, 2009 from: http://www.cityofseattle.net/financedepartment/0910adoptedbudget/Cost_A llocation_2009_Adopted_and_2010_Endorsed_

    Lewis Auto Company: Relative Per Unit Cost

    18. Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are: Direct materials $ 12 Direct manufacturing labor 60

    Cost Management

    Dr. Stephanie White, the Chief Administrator of uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu

    Identify Fixed and Variable Cost for a restaurant selling hamburgers

    ASSIGNMENT: Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total An

    Calculate allocated fixed cost: Urban Athletics Company

    Urban Athletics Company has two store locations, North and South. During October, the company reported net income of $192,000 on sales of $905,000. Sales in the North store were $680,000 and variable costs in the South store were 60% of sales. The contribution margin in the North store was $204,000. If total direct costs are $50

    Cash conversion cycle

    American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no difference in the investment p

    Managerial Acct

    Francis Manufacturing Co. is currently preparing its cash budget for next month and has gathered the following info.: Expected cash receipts.....................$39,400 Expected disbursements: Direct materials...........................$12,000 Direct labor...............................$9,000 Manufacturing overhead.......

    Managerial Acct

    Use the following to answer both questions: The Pann Co. has obtained the following sales forcast data: July August September October Cash sales........$80,000 $70,000 $50,000 $60,000 Credit sales......$240,000 $220,000 $180,000 $200,000 The regular pattern of collection

    Unit Sales and Degree of Operating Leverage

    Caneer Corp. produces and sells a single product. Selling price per unit..........$240.00 Variable expense per unit....... $81.60 Fixed expense per month.........$997,920 The UNIT sales to attain the company's monthly target profit of $44,000 is closest to: A) 7,896 B) 12,769 C) 6,578 D) 4,341 Serfass Corp's contri

    Margin of Safety and Break-Even Points

    A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company's actual sales are $224,000, its MARGIN OF SAFETY is: A) $32,000 B) $96,000 C) $128,000 D) $192,000 Borich Corp. produces and sells a single product. Dat

    Effects on Net Operating Income

    Cherry Street Market reported the following information for the sales of their only product, cherries sold by the pint: Total Per Unit Sales............................ $31,500 $4.50 Variable expenses................ 9,450 1.35 Contribution margin.............. 22,050

    Net operating income in a company

    Kuzio Corp. produces and sells a single product. Data concerning that product appear below: Per Unit Percent of sales Selling price....................$130 100% Variable expenses................ 78 60% Contribution margin.............. $52 40% The

    Finding Budgeted Net Operating Income

    Jilk Ink's contribution margin ratio is 58% and its fixed monthly expenses are $36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's NET OPERATING INCOME in a month when sales are $103,000? A)$23,740 B)$59,740 C)$67,000 D)$7,260 Wilson Company prepared the following pr

    Managerial Acct

    At the break-even point: A)sales would be equal to contribution margin B)contribution margin would be equal to fixed expenses C)contribution margin would be equal to net operating income D)sales would be equal to fixed expenses Rovinsky Corporation, a company that produced and sells a single product, has provided its cont

    Managerial Accounting: Jackson, Inc.

    Jackson, Inc., is preparing a budget for next year and requires a break down of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and direct labor hours worked are available for the last 6 months: Cost of steam Direct labo

    Total Contribution Margin

    The employees aaaaaat Mobile Sun Lotion Company roam the beaches with a tank of premium suntan lotion strapped on their backs. For a $2 charge, the employees will spray sunbathers with suntan lotion. Last year, Mobile Sprayed 250,000 customer and incurred the following costs: Total variable costs..........$175,000 Totoal fixed

    Finding Total Monthly Fixed Manufacturing Cost

    Daar Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume......2,000 units 3,000 units Direct materials.......$188,400 $282,600 Direct Labor...........$91,800 $137,700 Manufacturing overhead..$1