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Standard Costing, Cost Control, and Measuring Performance

Variable costing income statement

Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs. Variable Cost per Unit Direct materials $8.25 Direct labor $2.70 Variable manufacturing overhead $6.33 Variable selling and administrative expenses $4.29 Fixed Costs p

Revenue Function and Cost Function

A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $54,000. Another month he had total costs of $20,800 on a sales volume of 400 items. He also finds that the break even point is 20 items. a. Find the revenue f

The Costing Method for a Law Firm: Job Order or Process Costing

Assume that you are a member of an accounting consulting firm, advising a law firm on the advisability of selecting a process costing or a job costing structure for your firm. Assume that the law firm provides litigation, estate planning and corporate legal services with multiple levels of billing rates. Which costing method sh


I need assistance with a paper on Papa John Restaurant corporation. Visit its website and download its 2013 financial statements. http://ir.papajohns.com/annuals.cfm The paper has to be no more than 1300 words in which you conduct a comparative and ratio analysis to measure profitability and liquidity.

Internal accounting & Ethics: Objectives, importance, characteristics

The accounting managers wants to hire a management accountant to develop and implement internal controls. The CEO does not understand how this would help the firm. Prepare a memo to tell the CEO the reasons this hire is a good idea. Be sure to explain the following in the memo: *Objectives and characteristics of an internal

Capital Investment - PV

Please provide any assistance towards solving each part of the problem (i.e. what equations or numbers to use, further explanation of the questions being asked, etc.) Thank you. In recent years, there has been a lot of media coverage about the funding status of pension plans for state employees. In many states, the amount of

Ethical Issues with Modifying Financial Statements

Ethical issue Effect of decisions on ratio XYZ's (name of the company) long term debt agreement makes certain demands on the business. For example, XYZ may not purchase treasury stock in excess of the balance of retained earnings. Also, long term debt may not exceed stockholders equity, and the current ratio may not fall below

Make or Buy Decision and Transfer Pricing

A company makes remotely controllable model airplane. The company has two divisions, D1 and D2. Division D1 makes airplane model kit. Division D2 assembles and configures model airplane. A new airplane model has been developed of which the company will sell for $160 each. Division D2 of the company has planned to produce 1

engineering managment

XYZ is a toy manufacturer. It manufactures both toy components and finished toys. For a specific type of toys, the manufacturer can sell the components to an assembly company for $10 per set, or assemble the toys itself. The finished toys can be sold for $16 each. XYZ has a total capacity of 500,000 hours, which could be u

X Company's investment committee: ratio analysis select one

Take the role of an investment analyst at X Company. It is your job to recommend investments for your clients. The only information you have are some ratio values for two companies the pharmaceutical industry. Write a report to X Company's investment committee. Recommend on e company's stock over the other. State the reason f

Microsoft vs. Hewlett-Packard

Research and find financial statements for two companies of your choosing. Analyze the statements and compare the two companies, explaining which of the two is a better investment for the shareholder. Include a citation for the financial statements. For instance, compare two technology companies such as Microsoft and the Hewlett

Equity Method of Investment

Several years ago, Einstein, Inc bought 40 percent of the outstanding voting stock of Brooks Company. The equity method is appropriately applied. On August 1 of the current year, Einstein sold a portion of these shares. a. How does Einstein compute the book value of this investment on August 1 to determine its gain or loss on

Silverstone: Fixed Overhead Standard Cost Variances

Silverstone's production budget for March called for making 39,700 units of single product. The firm's production standards allow one-quarter of a machine hour per unit produced. The fixed overhead budget for March was $35,333. Silverstone uses an absorption costing system. Units

Liquid weed killer: Standard costing variances DM DL VOH

The standards for one case of liquid weed killer are: Direct materials 6lbs@$7.5/lb. Direct labor 3.6 hrs.@$16/hr Variable overhead (based on machine hours) 1.2hrs.@$5.5/hr During the week ended August 6, the following activity took place: 4, 765 m

Standard Cost Direct Labor Variances: Binding Department

Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher: Original Budget Flexed Budget Actual Budget Variance Direct labor $10,290 $11,000 The original budget is based on th

DMA, Inc. Apply Standard Conversion Costs Labor Overhead

DMA, Inc. processes corn into starch and corn syrup. The company's productivity and cost standards follow: From every bushel of corn processed, 14 pounds of starch and 4 pounds of syrup should be produced. Standard direct labor and variable overhead total $0.51 per bushel of corn processed. Sta

Lakeway Manufacturing Co. Raw Materials Standard Costing

Lakeway Manufacturing Co. manufactures and sells cleaning products. The company's research department has developed a new cleaner for which a standard cost miust be determined. The new cleaner is made by mixing 7 quarts of triphate solution and 4 pounds of sobase granules and boiling the mixture for several m

Brass Creations Co. Direct Labor Standard Cost and Evaluation

Brass Creations Co. Makes decorative candle pedestals. An industrial engineer consultant developed ideal time standards for one unit of the Cambridge model pedestal. The standards follow, along with the cost accountant's determination of current labor pay rates; Worktype 1 0.19 hour @12.46 per hour Worktyp

Budgetary Control

At least 100 words please. The use of budgets in controlling operations is known as budgetary control. Such control takes place by means of budget reports that compare actual results with planned objectives. The budget reports provide management with feedback on operations. Budgetary control involves developing budgets

Joint Costs: Physical Units, weighted average Alomar Co.

Joint costs of Alomar Company: DM $67,900.00 DL $34,000.00 OH $25,500.00 $127,400.00 1. Allocate using physical units: Barton Selene Plicene Corsol 1,400 2,600 2,500 3,500 weights for weighted average: Barton Selene Plicene Corsol weights 1.00 2.00

E7-21 Sequential Method and Support Department Allocations

Jasmine Company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. 1. Allocate the overhead costs to the producing departments using the sequential method. 2. Using machine hours, compute departmental overhead r

Direct Method and Support Department Allocations

Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeting data on the five departments are as follows: Support Production Power Gen Fact Pur

Net Realizable Value Method, Decision to Sell at Split-off or Process Further

Net Realizable Value Method, Decision to Sell at Split-off or Process Further Pacheco, Inc., produces two products, overs and unders, in a single process. The joint costs of this process were $50,000, and 14,000 units of overs and 36,000 units of unders were produced. Separable processing costs beyond the split-off point were

Variances for Payday Company

Payday Company has the following two customers: Woodley Henley Sales $900,000 $800,000 Cost of Goods Sold $360,000 $160,000 MSDA expenses excl