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.
Phenix Corporation reports the following information about its sales and cost of sales. Draw an estimated line of cost behavior using a scatter diagram, and compute fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales. Period Units Sol
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
Explain the importance of sampling from a managerial perspective. Provide examples.
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
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
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
Why are some firms dropping standard cost systems? Explain
A precision lathe costs $21,000 and will cost $31,000 a year to operate and maintain. If the discount rate is 15% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost= $___________
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
Suppose you arrive at a store expecting to pay $100 for an item but learn that a store 2 miles away is charging $50 for it. How does the decision benefit you? What is the opportunity cost of this decision? Now suppose you arrive at a store expecting to pay $6000 for an item but discover that it costs $5950 at the other store. D
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
Can you help me with the following assignment? I don't quite understand everything... Prepare responses to the following assignment from the e-text, financial accounting: Tools for Business Decision Making 4th ed., by Kimmel, Weygandt and Kieso Chapter 8 Question 3 and 4 3. What are the essential features of the allowan
Are variable cost always relevant costs? Example of a company of five different relevant costs that they might have in their orgainzation.
Jo Boat Company makes boats and incurs painting costs as follows over the last six months: January, 8 boats, $270; February, 5 boats, $200; March, 10 boats, $310, April , 4 boats, $190; May, 6 boats, $240; and, June, 9 boats, $290. Estimate the total painting cost for a month when 12 boats are produced.
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) $
a. Did Clear-View increase unit sales by cutting prices or by using some other strategy? b. Is Mr. Radeka correct in his conclusion that something is wrong with the company's performance evaluation process? If so, what do you suggest be done to improve the system? c. Prepare a flexible budget and recompute the budget variance
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity- based costing system contains the following six activity cost pools and activity rates: K425 M57 Direct Materials cost per unit $13.00 $56.00 Direct Lab
1. Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets? 2. What are some qualitative considerations that might be helpful in employee performance evaluations?
Please see attachment for proper format. Far North Telecom, Ltd., of Ontario, has organized a new division to manufacture and sell specialty cellular telephones. The division's monthly costs are shown in the table below. Far North Telecom regards all of its workers as full-time employees and the company has a long-standing no
1. Describe customer perceived value, total customer benefit, and total customer cost. How do the total customer benefit and the total customer cost affect the consumer's perception? Explain. 2. What are some of the ways that a business can attract and retain customers? 3. What are the five stages in the buying decision
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
Financial ratios are important to the understanding of the financial health of a company. You and your colleagues work for a financial services firm. You are discussing the merits of the various financial ratios. Identify four financial ratios, and state what they tell you about a firm and why it is important to understand what
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
Can you help me get started on this assignment? Complete the following exercise: Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Freemont C
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
You are provided with the following data relating to gizmo division of Tumbledown plc. Variable cost per unit = $320 for outputs up to 16,000 units = $240 for extra outputs over 16,000 units Fixed costs = $1,200,000 Sales during the last period were 16000 units @ $400 per unit The directors are far from satisfi
You will complete an industry analysis of a U.S. industry of your choosing. Each student must choose a different industry. The following is a suggested outline. 1 Introduction including identification of chosen industry 2 Industry characteristics 3 Types of products and/or services 4 Number of firms including concentrati
See Attached Spreadsheet. A condensed income statement for XYZ Company is as follows for the month of November: Master Budget Actual Variance Units Produced and Sold 20,000 19,000 (1,000) Sales revenue $400,000 $361,000 $(39,000) Costs: Direct materials 60,000 42,000 $18,000