A company has two divisions, the Selling Division and the Buying Division. The Selling Division manufactures an intermediate product and then "sells" them to the Buying Division, which completes the product and sells the final product to retailers. The market price for the Buying Division to purchase one unit of the intermediate
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
A company has two divisions, the Selling Division and the Buying Division. The Selling Division manufactures an intermediate product and then "sells" them to the Buying Division, which completes the product and sells the final product to retailers. The market price for the Buying Division to purchase one unit of the intermediate
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
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
1. In order to properly report segment margin as a guide to long-run segment profitability and performance, fixed costs must be separated into two broad categories. One category is common fixed costs. What is the other category? a. discretionary fixed costs b. committed fixed costs c. traceable fixe
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
Need some help with just this one question... Conversion cost per unit equals $6.00. Total materials cost equals $40,000. Equivalent units for materials are 20,000. How much is the total manufacturing cost per unit? A) $8.00 B) $6.00 C) $10.00 D) $2.00
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
Is a down payment on a layaway recorded on the books as an unearned revenue (liability)? Or is the entire cost of the item recorded as an unearned revenue? I would think it would be the whole item cost. Then if the customer does not come back to buy the item, the whole amount of the item is redistributed back into assets?
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:
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
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
You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a two paragraph memo to your manager explaining some of the cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs and maintena
One member of your team emailed you and stated that she believes Claire's Antiques should work to convert the fixed costs to variable costs. She wants to know if this is a good idea. Why or why not? If not, then when would it be a good idea? Reply to your friend with the answers to her questions. In your reply, identify the type
(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
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
29. Josemite Company reports the following cost data: Administrative cost $26,000 Direct materials cost 21,000 Manufacturing overhead cost 33,000 Direct labor cost 17,000 Selling cost 13,000 What is the total amount of indirect manufacturing costs?
38. The president of Yonkers Cranks, Inc. forecasts the company will incur $6,000,000 of manufacturing overhead in the coming year. The company also expects the following results for its operations in the coming year: Direct labor hours 200,000 Direct labor cost $3,000,000 Machine hours 20,000 Wh
Quola Canned Beverage Company reported the following data about its production process for the current month: Cost of beginning work in process $ 1,100,000 Total manufacturing cost $ 4,400,000 Units completed 800,000 Units in process (40%) complete 200,000 What was the average cost per equivalent unit
Explain the functions of financial and managerial accountants and explain how their reports are used by companies.
Can some one help me here?! Provided the following cost and income information for a period of time for the company Yes company selling their product in a market where it even is a heavy market player: Production Interval Difference Unit Cost Difference Unit Revenue 0- 1 000 units $ 2 800 $ 4 00
Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28,000 units can be sold at this stage for $700,000. Alternatively, it can be further processed at a $420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling price fo
A is a fixed cost; B is a variable cost. During the current year the level of activity has decreased but is still within the relevant range. We would expect that the cost per unit of A has remained unchanged the cost per unit of B has decreased The cost per unit of A has decreased The cost per unit of B has rema
Question: Ahron Company makes 76,000 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: $14.2 Direct labor: 16.8 Variable manufacturing overhead: 1.5 Fixed manufacturing overhead: 20.7 Unit product cost: $53.2 An outside su
What is the meaning of the term "cost object"? Give an example of a cost object that would be used in a manufacturing company, a merchandising company and a service sector company. I really appreciate your help, thanks a lot.
Black and Red, Inc. has prepared flexible budgets for two levels of sales. For sales of $1,000,000, net income is expected to be $250,000. For sales of $1,200,000, net income is expected to be $330,000. If fixed costs are expected to be $150,000, what percentage of sales are variable costs expected to be? A) 75.0% B)
Explain to management why monitoring and managing the cash conversion cycle is important to the overall profitability of the company.
New Public Management is becoming the dominant managerial approach in the United States. As a Council member, I certainly saw a movement towards NPM in some administrative areas of the city, but in others the more traditional approach remained. In general, what do you think instigated this overall shift in management style in
Question: Bulkboy Fitness Equipment, Inc. was recently created to produce and sell its "Biception" arm machine. Bulkboy decided to use a standard cost system to record costs related to the production of this product. The material standard for each machine produced is 1.07 pounds of a special aluminum tubing at a standard cost of