1. Axel Manufacturing produces three different products in the same plant and uses a job order costing system to estimate product costs. A flexible budget is used to forecast overhead costs. Total budgeted fixed factory overhead is $450,000 and variable overhead is 120% of direct labor dollars. Projected volumes, selling pric
1. To generate needed foreign exchange, the Cuban government entered into a joint venture with Camilo Cigars of Dominican Republic. The joint venture manufactures Camilo Cigars in Cuba using Cuban tobacco and employees. Camilo and the Cuban government split all profits evenly. The contract calls for all financial transactions, i
5. Fenway Company sells 1,000 shares of treasury stock for $32,000. The shares had been previously acquired for $24,000. The $8,000 received over cost should be credited to a. an asset account. b. a paid-in capital account. c. a revenue account. d. retained earnings. 6. The X Company has the following stock outstanding:
Income statement for a company in 20X1, the cost of goods sold and the credir sales are $200million and $240 million, respectively. The following data are from its balance sheets. Inventory Dec. 31, 20X1 $40 million, Dec. 31, 20X2 $60 million. Accounts receivable $30 million Dec. 31, 20X1, $50 million Dec. 31, 2003. Accounts pay
Company X is about to award a contract for an electrical switching device to Integrated Switches Corporation of Charleston, South Carolina. The switch will be used on the next version of infantry carrier vehicles. One obstacle that remains to be resolved, however, is that Company X requires a reliability of 0.995 for the device
A Chief administrator of a mental health is concerned about the problem 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 reduced and still keep the agency functioning. Below are so
1. Briefly identify and explain the principle motives for holding cash and near cash assets. 2. What are the risk-return trade-off associated with inventory management? 3. Explain how an agressive (verus a conservative ) asset management position influences: (a) level of currents assets (b) the cash conversion cycle (c
Scenario: Claire's Antiques has a fixed cost of $75,000 per month. Each antique has the following identifiable sales price, variable material costs, and fixed monthly costs, respectively. Sales Price.................Variable Material Costs.............Fixed Monthly Costs Clocks $700............................
Distinguish between cost and value and explain their relative significance in accounting?
1. Since Anytime Pizza is open 24 hours a day, its pizza oven is constantly on and is, therefore, always using natural gas. However, when ther is no pizza in the oven, the oven automatically lowers its flame and reduces its natural gas usage by 70%. The cost of natural gas would best be described as a: Fixed cost, Mixed co
Describe how the high-low method of cost estimation can be used in estimating the fixed cost component of a mixed cost in a business. Discuss how you would implement activity-based costing for a hospital organization.
1. Indirect labor is a part of: prime cost, conversion cost, period cost, or nonmanufacturing cost? 2. Fixed costs expressed on a per unit basis: will increase with increases in activity, will decrease with increases in activity, are not affected by activity, or should be ignored in making decisions since th
Describe how the high-low method of cost estimation can be used in estimating the fixed cost component of a mixed cost in a business. Discuss how you would implement activity-based costing for a hospital organization.
I would like the calculations and the theories behind them At $8,800, either 600 or 800 units of the Pro model are equally likely to be sold. --- A company manufactures and sells two types of scanners for personal computers, the Home Scanner and the Pro Scanner. The Home model is a low resolution model for small office a
The Vice President of Operations would like to increase profitability, improve customer service, and expand the business. Even though the external accounting department spends 5 days preparing each quarter's financial statements and disclosures, she does not examine those financial statements issued to the company shareholders.
Jensen's Travel Agency has a 7 percent preferred stock outstanding that is currently selling for $48 a share. The market rate of return is 10 percent and the firm's tax rate is 34 percent. What is the Jensen's cost of preferred stock?
Using the necessary steps, please calculate the cash conversion cycle of a firm with an inventory of $150,000,000, had $ 775,000,000 in sales over the year with a cost of goods sold of $ 581,000,000, receivables of $ 65,000,000, payables of $ 21,650,000.
When the actual amount of a raw material used in production is less than the standard amount allowed for the actual output, the journal entry would include: Credit to Work-In-Process; Credit to Materials Quantity Variance Credit to Raw Materials; Credit to Materials Quantity Variance Credit to Raw Materials; Deb
Bayshore Company manufactures and sells Product K. Results for last year are as follows: Sales (10,000 units at 150 each) 1,500,000 Less expenses: Variable production costs 900,000 Sales commissions (15% of sales) 225,000 Salary of product line manager 190,000 Traceable fixed advertising exp
The Melrose Company produces a single product, Product C. Melrose has the capacity to produce 70,000 units of Product C each year. If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows: Direct materials 20 Direct labor 17 Variable manufacturing overhead 13 F
Regis Company makes the plugs it uses in one of its products at a cost of 36 per unit. This cost includes 8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell them to Regis at 33 per unit. If Regis decides to purchase the plugs, 60,000 of the annual fixed overhead will be elimina
The following information relates to next year's projected operating results of the Aluminum Division of Wroclaw Corporation: Contribution margin 1,580,000 Fixed expenses 1,740,000 Net operating loss (160,000) If Aluminum Division is dropped, 1,000,000 of the above fixed costs would be eliminated. What will
Jordan Company budgeted sales of 395,000 calculators at 38 per unit last year. Variable manufacturing costs were budgeted at 14 per unit, and fixed manufacturing costs at 9 per unit. A special order for 40,005 calculators at 19 each was received by Jordan in March. Jordan has sufficient plant capacity to manufacture the addition
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
Nantua Sunglasses Corporation has two divisions, Southern and Northern. The following information was taken from last year's income statement segmented by division: Total Southern Northern Sales 4,600,000 3,000,000 1,600,000 Contribution margin 1,940,000 1,380,000 560,000 Divisional segment margin 1,016,000 84
The following information is available on Company X: Sales 99,000 Net operating income 3,700 Average operating assets 33,000 Stockholders' equity 23,000 Minimum required rate of return 10% Company X's residual income would be: 6,200 1,400 370 400
Brandon, Inc. has provided the following data for last year's operations: Sales 120,000 Net operating income 6,840 Average operating assets 37,000 Stockholders' equity 23,000 Minimum required rate of return 12% Reference: 12-5 Brandon's residual income is: 4,440 4,080 2,760 2
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