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
Pardoe, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of direct labor hours. The company uses a standard cost system and has established the following standards for one unit of product: Standard Standard Price Standard Quantity or Rate Cost Direct materials
Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for one unit of product. Standard Standard Price Standard Quantity or Rate Cost Direct material 8 pounds $1.80 per pound $14.40 Direct labor 0.25 hour
The following labor standards have been established for a particular product: Standard labor-hours per unit of output 8 hours Standard labor rate $13.4 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 4,900 hours Actual total labor cost $66,
The following are budgeted data: January February March Sales in units 16,000 19,000 17,000 Production in units 20,000 18,000 14,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchase
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
Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September 850,000 October 900,000 November 810,000 December 780,000 At Acmal, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in
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
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 manufacturing overhead 2.10 Fixed manufacturing overhead 14.20 Unit product cost 57.10 An outside
Dockwiller Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as D53. Data concerning this product are given below: Per Unit Data Selling price 150 Direct materials 26 Direct labor 3 Variable manufacturing overhead 1
Paulsen Company makes two products, W and P, in a joint process. At the split-off point, 50,000 units of W and 60,000 units of P are available each month. Monthly joint production costs are 290,000. Product W can be sold at the split-off point for 5.60 per unit. Product P either can be sold at the split-off point for 4.75 per un
Kahn Company produces and sells 8,000 units of Product X each year. Each unit of Product X sells for 10 and has a contribution margin of 6. It is estimated that if Product X is discontinued, 50,000 of the 60,000 in fixed costs charged to Product X could be eliminated. These data indicate that if Product X is discontinued, overal
What are the advantages of a 10-day, rather than a 40-day, cash conversion cycle? What are the disadvantages? What would you recommend for a health care organization? In your response, please reference the excerpt attched from McLean, Robert A. (2003). Financial Management in Health Care Organizations (2nd ed.). Albany, N
(Accounting Organizations and Documents Issued) Presented below are a number of accounting organizations and type of documents they have issued. Instructions Match the appropriate document to the organization involved. Note that more than one document may be issued by the same organization. If no document is provided for a
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
Gaston Piston Corp. has annual sales of $50,000,000 and maintains an average inventory level of $15,000,000. The average accounts receivable balance outstanding is $10,000,000. The company makes all purchases on credit and has always paid on the 30th day. The company is now going to take full advantage of trade credit and pay
Problem 7-49 Unit target cost per calculator Calcutron 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. Calcutron has a 15% return on sales
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 Minnetonka Corp., which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the conser
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.
Channing Company has two divisions, S and T. The company's overall contribution margin ratio is 30% when sales in the two divisions total 750,000. If variable expenses are 450,000 in Division S, and if Division S's contribution margin ratio is 25%, then sales in Division T must be: 300,000 75,000 225,000 150
The following information pertains to Quest Company's Gold Division for last year: Sales 311,000 Variable expenses 250,000 Traceable fixed expenses 50,000 Average operating assets 40,000 The Gold Division's return on investment is: 30.00% 13.33% 10.00% 27.50%
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
Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on the basis of standard direct labor-hours (DLHs). Budgeted and actual data relating to manufacturing overhead for last year appear below: Actual fixed overhead cost 38,900 Denominator activity 20,000 DLHs Standard hours a
A furniture manufacturer has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 5,400 DLHs Overhead costs at the denominator activity level: Variable overhead
The Steimer Company bases its flexible budget for manufacturing overhead on direct labor-hours (DLH). The company uses the following information in its flexible budget: Supplies 0.45 per DLH Utilities 9,000 per month plus 0.30 per DLH Insurance 3,000 per month Indirect labor 15,000 per month plus 0.25 per DLH
A manufacturer of playground equipment has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 8,100 DLHs Fixed overhead cost 78,975 The following data pertain to
Zotta Enterprises uses standard costing and applies manufacturing overhead cost to products on the basis of standard direct labor-hours (DLHs). Budgeted and actual data relating to manufacturing overhead for last year appear below: Actual fixed overhead cost 38,900 Denominator activity 20,000 DLHs Standard hours a
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 Annual Cost: 650