Craves Company makes four products in a single facility. Data concerning these products appear below: Product A B C D Selling price per unit 27.775 26.838 19.048 26.15 Variable manufacturing cost per unit 11.4 7.5 6.5 9.3 Variable selling cost per unit 3.5 1.6 3.5 1.8 Milling machine minutes per unit
Division A makes a part with the following characteristics: Production capacity in units 15,000 units Selling price to outside customers 30 Variable cost per unit 20 Fixed cost per unit 4 Total fixed costs 60,000 Division B, another division of the same company, would like to purchase 5,000 units of th
Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the month appear below: Original Budget Actual Costs Variable overhead costs: Supplies 11,340 12,850 Indirect labor 15,120 17,080 Fixed overhead costs: Su
Hatzenbuhler Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 6,500 machine-hours Variable overhead costs: Supplies 23,350 Indirect labor 53,350 Fixed overhead costs: Supervision 20,300 Utilities 5,800 Depreciation 7,400
Eng Natural Dying Corporation measures its activity in terms of skeins of yarn dyed. Last month, the budgeted level of activity was 16,500 skeins and the actual level of activity was 16,400 skeins. The company's owner budgets for dye costs, a variable overhead cost, at 0.43 per skein. The actual dye cost last month was 7,538. In
Sharp Company, a retailer, plans to sell 16,330 units of Product X during the month of August. If the company has 2,490 units on hand at the start of the month, and plans to have 2,366 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month? 16,206 18,696
Sarter Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Beginning Inventory Ending Inventory Finished goods (units) 70,000 20,000 Raw material (grams) 50,000 60,000 Each unit of finished goods requires 3 grams of raw m
Managerial Accounting -------------------------------------------------------------------------------- Ahringer Company makes 50,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials 19.10 Direct labor 21.70 Variable manu
Superior Lighting, Inc., mass produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Superior uses process costing
A firm is considering the following changes: increasing inventory variety which will increase average inventory by $10,000, and offering more liberal sales terms which will result in average receivables increasing to $65,000. These actions are expected to increase sales to $800,000 per year, and cost of goods will remain at 75
The three overall strategies for effective and efficient management of cash include inventory, accounts receivables and accounts payable. Explain how the effective management of these 3 components impacts your cash conversion cycle.
Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company had budgeted its fixed manufacturing overhead cost at 62,100 for the month and its level of activity at 3,200 MHs. The actual total fixed manufacturing overh
(See attached file for full problem description) --- Exercise 3-26 Health Foods Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information pertains to the blending department for January.
Pohl Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine-hours. For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20,000 machine-hours: Variable overhead c
Dexter Company uses a standard cost system and applies manufacturing overhead cost to units of product on the basis of standard direct labor-hours (DLHs). Information on Dexter Company's manufacturing overhead costs for last period is given below: Actual hours worked 40,000 DLHs Standard hours allowed for actual produc
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52. Reference: 10-11
The Fisheries company shipped 6,000 tons of halibut at a cost of $5,800 in March, and 9,000 tons for $8,200 in April. Assuming that this activity is within the relevant range, the expected shipping cost for shipping 7,800 tons would be: (Points: 15) a. $6,510 b. $9,750 c. $6,460 d. $6,420
I need to determine what is the contribution margin of Managerial Accounting and what is the difference between the contribution approach to the income statement and the traditional approach to the income statement?
Managerial accounting Absorption and Variable Costing; Production Constant, sales fluctuate: Sandi Scott obtained a patent on a small electronic device and organized Scott Products, Inc. in order to produce and sell the device. During the first month of operations, the device was very well received on the market, so Ms.
Black Company's sales are 600,000, its fixed expenses are 150,000, and its variable expenses are 60% of sales. Based on this information, the margin of safety is: 90,000 225,000 190,000 240,000
Carsten Wedding Fantasy Company makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related 0.75 per guest Complexity-related 33.44 per tier Order-related 8
Esmail Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity based costing system: Overhead costs: Wages and salaries 370,000 Other expenses 230,000 Total 600,000
Caber Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of 60,600. Actual manufacturing overhead for the year amounted to 59,000 and actual machine-hours were 5,900. The company's predet
Shipping costs at Columbia Mining Company are a mixture of variable and fixed components The company shipped 7,000 tons of coal for 352,500 in shipping costs in February and 9,000 tons for 451,500 in March Assuming that this activity is within the relevant range, expected shipping costs for 10,000 tons would be: 501,000
Process Reengineering includes all of the following steps except: constructing a diagram flowcharting the current process. elimination of non-value-added activities. redesigning the process. elimination of all constraints
Gamma Company has sales of 132,611, a contribution margin of 35,175.4, and a net operating income of 8,476. The company's degree of operating leverage is: 4.15 3.52 3.77 15.65
Please help answer the following problems. Provide step by step calculations. Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly 498,520 44,000 machine-hours Processing orders 54,263 1,100 orders Inspection 77,589 1
A 2.00 increase in a product's variable expense per unit accompanied by a 2.00 increase in its selling price per unit will: decrease the contribution margin. have no effect on the contribution margin ratio. have no effect on the break-even volume. decrease the degree of operating leverage.
Farmington 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 7,000 units 9,000 units Direct materials 223,300 287,100 Direct labor 129,500 166,500 Manufacturing overhead 924,800 961,400 The bes
Dimaio Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Manufacturing overhead 580,000 Selling and administrative expenses 240,000 Total 820,000 Distribution of res