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Management Accounting

Standard Costs for Units of Products

Kwikeze Company set the following standard costs for one unit of its product. Direct materials ((4.0 Ibs. @ $6.0 per Ib.) $ 24.00 Direct labor (1.8 hrs. @ $11.0 per hr.) 19.80 Overhead (1.8 hrs. @ $18.50 per hr.) 33.30 Total standard cost $ 77.10

Managerial Economics

Your company has developed a drug called Matrox that is an effective treatment for migraine headaches. You have just discovered that it can also be used for organ transplant patients to reduce the risk of organ rejection. The demand for migraine medications is considerably more elastic than the demand for drugs to reduce the ri

Managerial Accounting Travis Corporations

Compute ROI per Unit 1. Travis corporation produces high- performance rotors. It expects to produce $50,000 rotors in the coming year. It has invested $ 1,000,000 to produce rotors. The company has a required return on investment of 18% what is its ROI per unit? Compute markup percentage 2. Shandling corporation produces mi

intermediate accounting practice questions

1. The cost of an intangible asset includes all of the following except a. purchase price. b. legal fees. c. other incidental expenses. d. all of these are included. 2. When a patent is amortized, the credit is usually made to a. the Patent account. b. an Accumulated Amortization account. c. a Deferre

Cost allocation

The following are production and cost data for two products, X and Y. Product X Product Y Contribution margin per unit $450 $280 Machine set-ups needed per unit? 25 14 The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for t

Costing/Cost Function

Jersey Subs, Inc. wants to find an equation to estimate monthly utility costs. Jersey Subs has been in business for one year and has collected the following cost data for utilities: (see attached table) a. Which of the preceding costs is variable? Fixed? Mixed? Explain. b. Using the high-low method, determine the cost

Budgets in Managerial Accounting: Santiago's Salsa

Santiago's Salsa is in the process of preparing a production cost budget for May. Actual cost in April were: Santiago's Salsa Production Costs April 2011 25,000 Production Jars of Salsa Ingredients cost

IT Management Restraints

1.) What are reasonable kinds of restraints imposed on IT projects by management? What unreasonable restraints are sometimes encountered? 2.) Does it matter how much technical expertise top managers have in the area of information technology management in terms of the quality of their supervision of the process? 3.) To what

Rondell Pharmacy: Managerial Accounting: Break-even and Cost Structure

1.) "Breakeven analysis isn't very useful to a company because companies need to do more than break even to survive in the long run." Explain why you agree or disagree with this statement. 2.) Rondell Pharmacy is considering switching to the use of robots to fill prescriptions that consist of oral solids or medications in pil

EM, Inc. Kool Clothing: Standard cost variances

1. EM, Inc. private labels mini cupcakes for Starbucks. For April 2012, it budgeted to purchase and use 18,000 pounds of flour at $0.39 a pound. Actual purchases and usage for April 2012 were 22,000 pounds at $0.42 a pound. EM budgeted to produce 120,000 mini cupcakes. EM budgets to obtain 4 mini-cupcakes per pound of flour.

Details of Make Versus Buy Decisions

Pepsi Company purchases 8,000 units of a part that it needs for production of its product. Notification has just been received from the supplier that a price increase will take effect shortly, which will bring the price of each part to $25. Pepsi Company is considering using some idle facilities to produce the part. The producti

Managerial Accounting Sample Problems

Please see the document. 1. Harrow Inc. produces a single product and has the following cost structure: The absorption costing unit product cost is: 2. Jones Company produces a single product and has provided the following data concerning its most recent month of operations: What is the net operating income for th

Equivalent Units and Cost per Equivalent Units

Production and cost data for the month of February for process A of the Packer manufacturing Company follow: Units in process, February 1 (100% complete with respect with materials; 25% complete with respect to conversion cost) 2,000 New units started in process

The repair cost was inappropriately capitalized

During the first month of its current fiscal year, Green Co. incurred repair costs of $21,000 on a machine that had 5 years of remaining depreciable life. The repair cost was inappropriately capitalized. Green Co. reported operating income of $165,000 for the current year. Required: (a) Assuming that Green Co. took a f

Explain how three internal governance mechanisms -ownership concentration, the board of directors, and executive compensation--are used to monitor and control managerial decisions. Explain why ownership has been largely separated from managerial control in the modern corporation.

Explain how three internal governance mechanisms -ownership concentration, the board of directors, and executive compensation--are used to monitor and control managerial decisions. Explain why ownership has been largely separated from managerial control in the modern corporation.

Activity-based costing system.

Murri Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing

Management Accounting Practice Exam

1. When an organization involves its many employees in the budgeting process in a meaningful way, the organization is said to be using an approach most commonly known as: a. participative budgeting. b. budget padding. c. imposed budgeting. d. employee-based budgeting. 2. A budget serves as a benchmark against which: a. a

Explicit opportunity cost

Oliver Kamp has just made the final payment on his mortgage. He could continue to live in the home; cash expenses for repairs and maintenance (after any tax effect) would be $500 monthly. Alternatively, he could sell the home for $200,000 (net of taxes), invest the proceeds in 5% municipal tax-free bonds, and rent an apartment f

Managerial Accounting for Waller Inc - FIFO method

Waller Inc. uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in the beginning work in process inventory 600 Materials costs $ 4,200 Conversion costs $ 7,800 Percent complete with resp

Managerial accounting for Blaster Corporation, Precision Systems

Please see attached problem set for tables, and a separate template file. Problem 20.2A Blaster Corporation manufacturers hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots: Budgeted Costs Budgeted Costs per Pair Percentage of Costs Consid

Managerial Accounting

The management of Sharrar Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work. In this example, the a

Heritage Company: classifications, average product cost per bookcase

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 3,900 bookcases per year. Annual cost data at full capacity follow: Direct materials used (wood and glass) $

Management Accounting question # 3: Bourbon coffee - target profit, sales mix

Please see attached file. Bourbon coffee is one of the most popular Arabica coffees sold in the world. It was first produced on the French island of Ã?le Bourbon and was later taken by the French to Africa and Latin America. The president wants to introduce a new premium line of Bourbon coffee beans and has sourced premium g

Home Auto Parts is a large retail auto parts store selling the full range of auto parts and supplies for do-it-yourself auto repair enthusiasts. The store is arranged with three prime displays in the store: front door, checkout counters, and ends of aisles. These display areas receive the most customer traffic and contain special stands that display the merchandise with attractive eye-catching designs. Each display area is set up at the beginning of the week and runs for one week. Three items are schedules next week for special display areas: Texcan Oil, windshield wiper blades, and floor mats. The accompanying table provides information for the three promotional areas scheduled to run next week: Planned Display for Next Week End of Checkout Aisle Front door Counter Item Texcan Oil Wiper blades Floor mats Sales Price 69 cents/can $9.99 $22.99 Projected weekly volume 5,000 200 70 Unit Cost 62 cents $7.99 $17.49 Based on past experience, management finds that virtually all display-area sales are made by impulse buyers. The display items are extra purchases by consumers attracted by the exhibits. Before the store managers sets up the display areas, the distributor for Armadillo car wax visits the store. She says her firm wants its car wax in one of the three display areas and is prepared to offer the product at a unit cost of $2.50. At a retail price of $2.90, management expects to see 800 units during the week if the wax is on special display. Required: a. Home Auto has not yet purchased any of the promotion items for next week. Should management substitute the Armadillo car wax for one of the three planned promotion displays? If so, which one? b. A common practice in retailing is for the manufacturer to give free units to a retail store to secure practice in space or shelf space. The Armadillo distributor decides to sweeten the offer by giving Home Auto 50 free units of car wax if it places the Armadillo wax on display. Does this change your answer to part (a)?

Can you help me with the following project? Home Auto Parts is a large retail auto parts store selling the full range of auto parts and supplies for do-it-yourself auto repair enthusiasts. The store is arranged with three prime displays in the store: front door, checkout counters, and ends of aisles. These display areas rec

Perform relevant cost analysis for Healthy Dairy Products

See attached case file. Answer the following questions. Provide all necessary calculations to support your answers. 1) Why do you think that HDP selected pounds of butterfat as an allocation basis? Would you suggest a different allocation base? 2) Using cost estimates from the existing system presented in table 2, woul