analysis could be made to help the top ma sought your expertise on the subject mat Sales (in Pesos) Sales Volume Variable Costs: Cost of Direct Raw Materials Cost of Direct Labor Cost of Packaging Materials Fixed Costs: Monthly Denreciation
Q: Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering…
A: Estimated Investment $ 780,000 Return on Investment 12% Desired return $…
Q: Unit VI question 1
A: The expected or normal range of activities for which relevant cost behaviors can be seen is referred…
Q: Milden Company is a distributor who wants to start using a contribution format income statement for…
A: As per the high-low method, the highest level of activity and lowest level of activity cost is…
Q: (a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales…
A:
Q: The management of Brinkley Corporation is interested in using simulation to estimate the profit per…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per…
A: Fixed costs are those costs which do not vary with increase in production. As production increases…
Q: APPLY THE CONCEPTS: Effect of Changes to Sales Price, Variable Costs and Fixed Costs Now consider…
A: Solution
Q: Martin Company is considering the introduction of a new product. To determine a selling price, the…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: The Break-even point is the level of sales where the fixed cost is equal to the contribution margin.…
Q: Determining mixed costs—the high-low method The manager of Trusty Car inspection reviewed the…
A: Hello, since the student has posted multiple requirements we will answer the first three alone.…
Q: A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual…
A: Total Cost- Total cost is the sum of all the expenses that are incurred in the process of…
Q: Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the…
A:
Q: Absorption Costing Approach to Cost-Plus Pricing Martin Company uses the absorption costing approach…
A: Return on Investment (ROI: This is the financial ration that evaluates how efficiently the assets…
Q: Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the…
A: Markup Percentage will be computed using the following formulae : Markup percentage = Desired…
Q: Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering…
A: SOLUTION- Markup Percentage will be computed using the following formulae : Markup percentage =…
Q: Markup on Cost, Cost-Based Pricing Arthur Quillen Construction Company is a general contractor that…
A: Cost accounting is one of the important branch of accounting process. Under this branch, all type of…
Q: Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the…
A: Hello, I am only answering first three subparts of the question as per the policy and if you want…
Q: ördering per A new purchasing agent has been hired by the company who wants to start using the…
A: Economic order quantity Economic order quantity refers to the ideal quantity which is required to be…
Q: In the process of finding the optimum order quantity the following costs are obtained per order or…
A: Economic Order Quantity:- It is an ideal quantity a company has to purchase with maintaining minimum…
Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…
A: Break-even point: The point of sales where the situation of No Profit No Loss comes is called…
Q: Let's try another version of Example #6 in the example packet. Suppose Revenues are $535,311 Cost of…
A: Contribution margin income statement is prepared as follows:
Q: Engineering LLC is facing a cost issues in their production department. The Production manager of Al…
A: It helps in the variance analysis of the company.
Q: For this scenario, calculate the mixed costs at different levels across the relevant range, then…
A: Fixed cost is that cost which do not change with change in level of activity. Variable cost is that…
Q: background info is provided in the image attached. Solve the following: c) Assuming sales of 5,000…
A:
Q: Spock Company incurs the following costs to produce and sell a single product. Variable costs per…
A: The variable Costing is a Management Accounting concept, where the overhead classification is made…
Q: Using incremental analysis, determine if the component should be purchased from the outside…
A: Incremental analysis is a decision-making technique used in business to determine the true cost…
Q: You have been asked by management to classify the costs associated with the start-up of this new…
A: SOLUTION- CLASSIFICATION OF COST- IT MEANS SEPARATION OF EXPENSES IN THE DIFFERENT SECTORS AS LIKE…
Q: The following information describes a product expected to be produced and sold by Hadley Company:…
A: Break-even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…
Q: The graphs below represent cost behavior patterns that might occur in acompany's cost structure. The…
A: Cost behavior: Cost behavior is that the relationship between cost and activity and it's relevant to…
Q: Mallard Corporation uses the product cost concept of product pricing. Below is the cost information…
A: Production Cost: It refers to the cost incurred for the manufacturing of the product. It includes…
Q: total cost C for a manufacturer during a given time period is a function of the number N of items…
A: Price of widgets= Total Revenue from widgets Total units sold p =RN
Q: ompare the following two companies: Company A is a retail merchandise firm with current sales of…
A: Step 1 A contribution margin income statement is an income statement in which all variable expenses…
Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…
A: Variable costs are those costs that change with the change in the activity level. On the other hand,…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…
Q: a. Calculate the machine utilization rate for each machine each month and explain which of the…
A:
Q: Martin Company is considering the introduction of a new product. To determine a selling price, the…
A: Absorption Costing Approach: Mark up = Profit + Variable SG&A + Fixed SG&A Profit =…
Q: a) Using the equation method, calculate the normal capacity of the business. b) Calculate: i) the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Ritner Corporation manufactures a product that has the following costs: Per Year Per Unit $ 22.30 $…
A: The cost that is involved in producing a product is called product cost. This cost involves the…
Q: The following statements have been made about life cycle costing: (i) It focuses on the short-term…
A: Product life cycle refers to the whole time starting from the introduction of a product and ends…
Q: 1. The unit costs ($) for manufacturing a component for a washing machine are as follows: Direct…
A: Cost Volume Profit Analysis - It is method to find out a way to how changes in variable and fixed…
Q: As a new accountant of the company, you are provided with the following information related to…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Listed below are a company’s monthly unit costs to manufacture and market a particular product.…
A: Concept maximum amount per unit that the company can pay the supplier without decreasing its…
Q: As manager of the St. Cloud Theatre Company,you have decided that concession sales will support…
A: Break Even Volume is used to calculate the number of units to be sold to recover the initial…
Q: Martin Company uses the absorption costing approach to cost-plus pricing. It is considering the…
A: Here in this question, we are required to determine markup percentage on absorption cost to achieve…
Step by step
Solved in 2 steps
- ABC Manufacturing is a producer of a local product used in house cleaning, called Agent C. The production manager isrequired to present a production report for the month August, however he got no idea on what information he neededfor the report, and what analysis could be made to help the top management on their decision-making.The production manager sought your expertise on the subject matter and gave to you the following information:Sales (in Pesos) 4,957,875.00Sales Volume 22,500.00Variable Costs:Cost of Direct Raw Materials 895,000.00Cost of Direct Labor 530,000.00Cost of Packaging Materials 124,200.00Fixed Costs:Monthly Depreciation 650,000.00Monthly Rent of Warehouse 100,000.00Fixed Monthly Allowance for Electricity 675,000.00Other Fixed Manufacturing Overhead 146,700.00Required:BREAKEVEN ANALYSIS1. Compute the selling price per unit of Agent C. _________________2. Compute the variable cost per unit of Agent C. _________________3. Compute the variable cost rate of Agent C.…ABC Manufacturing is a producer of a local product used in house cleaning, called Agent C. The production manager is required to present a production report for the month August, however he got no idea on what information he needed for the report, and what analysis could be made to help the top management on their decision-making. The production manager sought your expertise on the subject matter and gave to you the following information: Sales (in Pesos) 4,957,875.00 22,500.00 Sales Volume Variable Costs: Cost of Direct Raw Materials 895,000.00 530,000.00 124,200.00 Cost of Direct Labor Cost of Packaging Materials Fixed Costs: Monthly Depreciation Monthly Rent of Warehouse Fixed Monthly Allowance for Electricity Other Fixed Manufacturing Overhead 650,000.00 100,000.00 675,000.00 146,700.00 Required: SENSITIVITY ANALYSIS If the selling price per unit is increased by 20% of its current price while the variable cost per unit is also increased by 30%, compute the following: a. Compute the…ABC Manufacturing is a producer of a local product used in house cleaning, called Agent C. The production manager is required to present a production report for the month August, however he got no idea on what information he needed for the report, and what analysis could be made to help the top management on their decision-making. The production manager sought your expertise on the subject matter and gave to you the following information: Sales (in Pesos) 4,957,875.00 22,500.00 Sales Volume Variable Costs: Cost of Direct Raw Materials 895,000.00 530,000.00 124,200.00 Cost of Direct Labor Cost of Packaging Materials Fixed Costs: Monthly Depreciation Monthly Rent of Warehouse Fixed Monthly Allowance for Electricity Other Fixed Manufacturing Overhead 650,000.00 100,000.00 675,000.00 146,700.00 Required: SENSITIVITY ANALYSIS If the selling price per unit is increased by 20% of its current price while the variable cost per unit is also increased by 30%, compute the following: g. How many…
- ABC Manufacturing is a producer of a local product used in house cleaning, called Agent C. The production manager is required to present a production report for the month August, however he got no idea on what information he needed for the report, and what analysis could be made to help the top management on their decision-making. The production manager sought your expertise on the subject matter and gave to you the following information: Sales (in Pesos) 4,957,875.00 22,500.00 Sales Volume Variable Costs: Cost of Direct Raw Materials 895,000.00 530,000.00 124,200.00 Cost of Direct Labor Cost of Packaging Materials Fixed Costs: Monthly Depreciation Monthly Rent of Warehouse Fixed Monthly Allowance for Electricity Other Fixed Manufacturing Overhead 650,000.00 100,000.00 675,000.00 146,700.00 Required: BREAKEVEN ANALYSIS 1. Compute the selling price per unit of Agent C. 2. Compute the variable cost per unit of Agent C. 3. Compute the variable cost rate of Agent C. 4. Compute the…Willingham Construction is in the business of building high-priced, custom, single-family homes. The company,headquartered in Anaheim, California, operates throughout the Southern California area. The construction periodfor the average home built by Willingham is six months, although some homes have taken as long as nine months.You have just been hired by Willingham as the assistant controller and one of your first tasks is to evaluate thecompany’s revenue recognition policy. The company presently recognizes revenue upon completion for all of itsprojects and management is now considering whether revenue recognition over time is appropriate.Required:Write a 1- to 2-page memo to Virginia Reynolds, company controller, describing the differences between theeffects of recognizing revenue over time and upon project completion on the income statement and balance sheet.Indicate any criteria specifying when revenue should be recognized. Be sure to include references to GAAP asthey pertain to…Suppose that Kicker had the following sales and cost experience (in thousands of dollars) for May of the current year and for May of the prior year: In May of the prior year, Kicker started an intensive quality program designed to enable it to build original equipment manufacture (OEM) speaker systems for a major automobile company. The program was housed in research and development. In the beginning of the current year, Kickers accounting department exercised tighter control over sales commissions, ensuring that no dubious (e.g., double) payments were made. The increased sales in the current year required additional warehouse space that Kicker rented in town. (Round ratios to four decimal places. Round sales dollars computations to the nearest dollar.) Required: 1. Calculate the contribution margin ratio for May of both years. 2. Calculate the break-even point in sales dollars for both years. 3. Calculate the margin of safety in sales dollars for both years. 4. CONCEPTUAL CONNECTION Analyze the differences shown by your calculations in Requirements 1, 2, and 3.
- You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Big Apple Design Company specializes in designing commercial office space in Chicago. The firm’s president recently reviewed the following income statement and noticed that operating profits were below her expectations. She had a hunch that certain customers were not profitable for the company and asked the controller to perform a customer-profitability analysis showing profitability by customer for the month of March. Required: Put yourself in the position of Big Apple’s controller and write a memo to the president to accompany the customer-profitability graph. Comment on the implications of the customer-profitability analysis and raise four or more questions that should be addressed by the firm’smanagement team.
- B-You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high-tech research firm approached B-You's owner with an offer to contract for one year with B-You to improve the interpersonal skills of a newly hired manager. B-You reported the following costs and revenues during the past year (before the proposed contract). B-YOU Annual Income Statement Sales revenue $ 560,000 Costs Labor 260,000 Equipment lease 42,000 Rent 35,000 Supplies 30,000 Officers' salaries 160,000 Other costs 20,000 Total costs $ 547,000 Operating profit (loss) $ 13,000 If B-You decides to take the contract to help the manager, it will hire a full-time consultant at $85,500. The equipment lease will increase by 20 percent. Supplies will increase by an estimated 10 percent and other costs by 15 percent. The existing building has space for the new consultant. No new offices will be necessary for this work.Advanced Coding is a software development company that sells specialized practice management software to large professional services firms. Management has decided to analyze certain costs related to sales to determine per-customer profitability and to plan for future sales efforts. These costs include sales commissions and overhead related to the corporate jet expenses. They have determined that $200,000 of overhead costs related to the corporate jet should be assigned to individual customers. Sales representatives are paid a commission of 5% on Gross Profit (sales less costs to develop the software). In relation to overhead costs, the sales staff used the corporate jet at a cost of $1,000 per hour for trips to customers as follows: Customer #1: 50 hours Customer #2: 43 hours Customer #3: 15 hours Customer #4: 8 hours Customer #5: 10 hours Gross profit per customer is as follows: Customer #1: $340,000 Customer #2: $240,000 Customer #3: $60,000 Customer #4: $80,000 Customer #5: $60,000…Bilibid Company operates several regional offices. Its manager, Leila, is very much concermed about the cost of supplies that is why she hired her lover, Mr. Dayan, to analyze the behavior of its cost. A record of service revenues and corresponding supply costs in one of the offices follows: Cost of supplies P66,500 Monthly service revenues P850,000 650,000 750,000 1,450,000 55,500 60,500 96,500 78,500 1.100,000 Required: a. Determine the variable cost per one-peso of sales and the fixed costs using the high-low method. b. Compute the expected cost of supplies during a month when sales would be P1,050,000.