and will not be affected by the special order. Normally, there is a commission of 9 percent of price: this will not be paid on the chain's logo on each box.
Q: Packaging Solutions Corporation manufactures and sells a wide variety of packaging products.…
A: Spending variance :— It is the difference between flexible budget and actual results. Activity…
Q: Compute the break-even sales (units) under the proposed program for the following year. 5.…
A: Contribution margin is difference between selling price and variable cost. After deducting fixed…
Q: Original Built, LLC has budgeted the following for 2023: Purchases $420,000 Beginning Accounts…
A: A company often buys goods and materials on credit. The amount owed for this is called accounts…
Q: Exercise 12-40 (Algo) Single versus Dual Rates (LO 12-5, 6) Kentfield Advisory Services (KAS) is a…
A: Under cost allocation we allocate cost to relative departments on the most suitable basis. Variable…
Q: Stay-In-Style (SIS) Hotels Inc. is considering the construction of a new hotel for $30 million. The…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light…
A: Variances are a tool used by accountants and other business experts to plan for inescapable…
Q: Exercise 13-1 (Static) Identifying Relevant Costs [LO13-1] Svahn, AB, is a Swedish manufacturer of…
A: Relevant Cost In Management accounting the term of Relevant cost is really matter. Relevant cost is…
Q: The Lakeside Company uses a weighted-average process costing system. The following data are…
A: Equivalent units of Production Material conversion Units % Units % Units Units…
Q: You are Capable of Amazing Things (YCAT) is in the process of determining how their costs behave.…
A: Variable cost per unit=Highest activity cost-Lowest activity costHighest activity units-Lowest…
Q: Question 24 Senior Company has two products, Alpha and Beta, which emerge from a joint process with…
A: Joint costs are those costs which are incurred simultaneously for more than one product. These costs…
Q: The shareholders’ equity of Tru Corporation includes $680,000 of $1 par common stock and $1,280,000…
A: The preferred dividend is paid before common stock dividend. The cumulative preference shareholders…
Q: Which principle is used to guide your decision about accruing expenses when you have difficulty…
A: Accounting Period Principle - According to this principle every transaction recorded in the period…
Q: Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied…
A: The journal entries are prepared to record the transactions on regular basis. Using perpetual…
Q: The following data is giv Cash Accounts receivable (net) Inventories Plant assets (net) Accounts…
A: Acid test ratio helps in indicating whether the quick assets are sufficient to meet the current…
Q: Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Totodile Inc. shows total material costs for the period to be $66,000. What is the material cost…
A: Materials refers to all commodities consumed in the process of production. The term inventory…
Q: During a recent IRS audit, the revenue agent decided that Apple, an individual, used his…
A: The accumulated earnings are the amount of prior years' earnings retained in the business. The…
Q: On January 1, 2023, the Bonita Company budget committee reached agreement on the following data for…
A: The budget is prepared to estimate the requirements for the future period. The budget helps to…
Q: Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following…
A: Variance analysis is one of the technique being used in management accounting. Under this, standard…
Q: Pratt Company acquired all of the outstanding shares of Spider, Inc., on December 31, 2021, for…
A: It is the single balance sheet in which the financial positions of both the parent and subsidiary…
Q: Company J is preparing their budgeted income statement for the year. They anticipate that they will…
A: Budgets are the estimates or forecasts that are made for future period. Budgeting is the process of…
Q: Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable asset…
A: Tax expense refers to an amount that is charged by an individual or corporation to the local,…
Q: (a) (b) Prepare a sales journal and a single-column purchases journal. Record the transactions for…
A: Revenue is the income generated by the entity during the period through sales of goods or provision…
Q: sophone, oboe, and clarinet reeds, has projected sales to be 1002.000 in October, 1054.000 in…
A: Sales budget is the estimation of a firm's total revenue over a specific period of time it includes…
Q: Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless…
A: Variance arises when there is difference between actual costs and standard costs. The variance is…
Q: Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following…
A: Variance analysis is one of the technique being used in management accounting. Under this, standard…
Q: Brief Exercise 19-4 (Algo) Stock options; forfeiture; financial statement effects [LO19-2] Inder its…
A: The stock option plan refers to when the company offers to provide an option for the employees and…
Q: Anderson Steel Company began 2021 with 500,000 shares of common stock outstanding. On March 31,…
A: Earnings per share refer to the proportion of profit to be earned by each shareholder of the…
Q: Sheridan Bottling Corporation is considering the purchase of a new bottling machine. The machine…
A: To determine the current worth of a future stream of payments from a business, project, or…
Q: Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments…
A: Introduction:- This question is related to accounting and involves the calculation of appropriate…
Q: Complete the following for the present value of an ordinary annuity. (Use Table 1 your answer to the…
A: In other words, the present value is the discounted value of a future cash flow or sum of money,…
Q: 1. Perform the first stage allocation of costs to the activity cost pools. (Do not leave any empty…
A: Activity rate:— It is the rate used for allocating manufacturing overhead cost to cost objects under…
Q: Cumulative resent Value of Present Value of Net Cash Flows Net Cash Flows $ (116,400) $ (116,400)…
A: Break-even time = it is a time when the cumulative present value of net cash is equal to zero. Time…
Q: c. purchases raw materials on account for use in production. The direct mall $374,300 410,600…
A: Payment made in the month of billing - 35% Payment made in next month - 65% Purchase April=…
Q: Shadee’s budgeted income statement for the months of May and June
A: A budgeted income statement refers to the calculation of net income expected in the coming time. The…
Q: Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a…
A: Variance refers to the difference between the estimated/budgeted and the actual performance of the…
Q: El Toro Corporation declared a common stock distribution to all shareholders of record on June 30,…
A: The stock dividend refers to the distribution of common shares to the shareholders. The dividend can…
Q: Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first…
A: Inventory means the products, goods, or materials, that a business holds for the purpose of resale,…
Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E): 6%; re 12%; and Tc=…
A: WACC stands for Weighted Average Cost of Capital. It is a financial metric that represents the…
Q: the company's net income would be:
A: Solution The cash flow statement is a financial statement which is used to ascertain the…
Q: P Cleaning Products manufactures a product using a process that allows for substitution between two…
A: Standard costing is the practice of predicting production-related costs because producers are unable…
Q: Exercise 12-36 (Algo) Single versus Dual Rates (LO 12-6) Mackenzie Mining has two operating…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: ) Expected quarterly unit sales of cured hams at Rod's Meat World are 1,200, 2,000, 1,400, and 1,000…
A: Production budget :— This budget is prepared to estimate the number of units to be produced for…
Q: Qualified Business Income (QBI
A: As per IRS rule 2022 the deduction for QBI is lower of 1]20% of the net…
Q: Hudson River Bakery reported net sales revenue of $59,000 and cost of goods sold of $32,000. Compute…
A: Merchandise inventory is that inventory which is available for sale. It is a current asset for the…
Q: What would the standards look like for both DL and variable-MOH if management reduces expected DL…
A: Bramble Motors (b) Total variable-MOH costs = 6600 DL hours * $8.10 = $53,460 Total products…
Q: Diaz Company issued bonds with a $87,000 face value on January 1, Year 1. The bonds had a 8 percent…
A: Due to the issuer's legal responsibility to pay back the bond's principal and interest, bonds are…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: Direct materials (a) $ 178,400 Direct labour (b) $ 225,500 Variable factory OH (…
Q: Req1-Req2 were incorrect. Can you try the problem again ?
A: Net present value is difference between present value of cash inflows and present value of cash…
Q: Get Hitched Inc. is a production company that is in the process of testing a strategic initiative…
A: Gross profit=Sales-Cost of goods soldProduct cost=Direct Labor+Direct Materials+Overhead
Please help me with show all calculation thanku
Step by step
Solved in 3 steps
- Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 80 percent of capacity. A chain of drugstores has offered to buy 29,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $5.40 per box, the chain has offered just $2.90 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows: Direct materials $1.75 Direct labor 0.34 Variable overhead 0.08 Fixed overhead 1.90 Total cost per box $4.07 Fixed overhead is $444,000 per year and will not be affected by the special order. Normally, there is a commission of 5 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $15,900 for the design and…Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 27,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $5.90 per box, the chain has offered just $3.40 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows: Direct materials $1.90 Direct labor 0.35 Variable overhead 0.08 Fixed overhead 2.20 Total cost per box $4.53 Fixed overhead is $428,000 per year and will not be affected by the special order. Normally, there is a commission of 5 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $13,500 for the design and…Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 30,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.00 per box, the chain has offered just $3.10 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows: Direct materials $1.87 Direct labor 0.33 Variable overhead 0.08 Fixed overhead 2.10 Total cost per box $4.38 Fixed overhead is $420,000 per year and will not be affected by the special order. Normally, there is a commission of 5 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $14,300 for the design and…
- Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 30,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.00 per box, the chain has offered just $3.10 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows: Direct materials $1.87 Direct labor 0.33 Variable overhead 0.08 Fixed overhead 2.10 Total cost per box $4.38 Fixed overhead is $420,000 per year and will not be affected by the special order. Normally, there is a commission of 5 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $14,300 for the design and…Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets.The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.Numble Inc., manufactures boxed stationery. Currently, the company is operating at 80 percent of capacity. A chain of hospitals has offered to buy 24,000 boxes of Numble’s’ pink-bordered thank-you notes as long as the box can be customized with the hospital chain’s logo. While the normal selling price is $5 .00 per box, the chain has offered just $3.40 per box. Numble can accommodate the Special order Without affecting current sales. Unit cost information for a box of thank-you notes follows: Required: 1. What are the alternatives for Numble Company? 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production and of external purchase. 3. Which alternative is more cost-effective and by how much? 4. Will Numble still accept the offer if the price offered is $2.50? Why or why not? Explain.
- Numble Inc., manufactures boxed stationery. Currently, the company is operating at 80 percent of capacity. A chain of hospitals has offered to buy 24,000 boxes of Numble’s’ pink-bordered thank-you notes as long as the box can be customized with the hospital chain’s logo. While the normal selling price is $5 .00 per box, the chain has offered just $3.40 per box. Numble can accommodate the Special order Without affecting current sales. Unit cost information for a box of thank-you notes follows: direct materials $1.80 Direct labour 0.33 variable overhead 0.25 fixed overhead 2.2 Total unit cost $4.58 Required: 1. What are the alternatives for Numble Company? 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production and of…Gooby Gummies makes taffy candy, which it sells at local supermarkets. The fixed monthly cost to produce the candy is $4,000. The main ingredient for the candy, glucose syrup costs $0.21 per pound. Gooby Gummies sells the taffy for $0.75 per pound to supermarkets. The management of Gooby Gummies is thinking of raising the price of the taffy candy to $0.95 per pound. Currently, the company produces and sells 9,000 pounds of taffy candy a month. The management realizes that if they raise the price, the sales will go down to 5,700 pounds per month. By how much will the company's profit per year be affected if Gooby Gummies' management decide to raise the price? Should the company raise its price? Explain your answer.The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards. How much should the store order, and what will be the total annual inventory cost for that order quantity?
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shelf. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320,000. However, the $1.50 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order?A. Profits will decrease by $1,200.B. Profits will increase by $31,200.C. Profits will increase by $600.D. Profits will increase by $7,200.Joe's Soup plant has a monthly capacity of 2,000 cases. Joe's Soup plant has just received a special order to produce 400 cases of mushroom noodle soup for a statewide supermarket. The supermarket will sell the soup under its own private brand label. The soup will be the same in all respects, except for the label, which will cost Joe's Soup plant an extra $400 in total to design. The supermarket has offered to pay only $19.00 per case, which is well under Joe's normal sales price. Costs at the current production level (450 cases) are as follows Manufacturing Costs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total Total Cost $4,500 1,350 900 2,700 $9,450 Cost per Case $10.00 3.00 2.00 6.00 $21.00 If Joe's Soup plant accepts the offer, profits will increase (decrease) by how much. Indicate a decrease with a leading minus sign.Dairyplus processes organic milk into plain yogurt. Dairyplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $890, yields 570 gallons of plain yogurt. The company sells the one-gallon tubs for $8.00 each and spends $0.14 for each plastic tub. Dairyplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Dairyplus could further process each batch of plain yogurt into 12,160 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Dairyplus would sell each individual portion for $0.46. Packaging would cost $0.07 per portion, and fruit would cost $0.12 per portion. Fixed costs would not change. Should Dairyplus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the plain yogurt into…
