Carla Vista Company purchases sails and produces sailboats. It currently produces 1,260 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Carla Vista purchases sails at $254 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $95 for direct materials, $80 for direct labor, and $90 for total manufacturing overhead. The $90 total manufacturing overhead includes $78,120 of annual fixed overhead that is allocated using normal capacity.
Q: Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit…
A: Margin of safety means the point where a company started to make a profit. It is the point where…
Q: Based on the project data presented in the table, what is the amount of overbilling and underbilling…
A: The percentage of completion method is useful when a construction spans over multiple years and the…
Q: Assume that TDW Corporation (calendar-year-end) has 2023 taxable income of $682,000 for purposes of…
A: The Section 179 Expense Deduction is a U.S. tax provision that allows businesses to deduct the cost…
Q: Buildings and equipment (net of accumulated depreciation) Prepaid insurance Liability-loss…
A: Income tax payable:The tax amount that is due to the government or tax authority is called income…
Q: Spenser Company sells two products, Delta and Alpha, with a sales mix of 80% and 20%, respectively.…
A: Contribution margin = Selling price per unit - Variable cost per unit. Total contribution margin =…
Q: Midlothian acquires 100 percent of the outstanding voting shares of Cedar Company on January 1,…
A: The amount of capital raised by a establishment through the issue of shares of stock at a price…
Q: On June 1, 2022, Superior Insurance Company collected $470,000 for a 2-year insurance policy…
A: The objective of the question is to calculate the amount of insurance revenue that will be…
Q: Edlie Accessories (EA) makes travel bags, both for sale under their own label ("Branded") and for…
A: INFORMATION:-This question presents a scenario in which Eddie Accessories (EA) manufactures travel…
Q: In each of the cases below, assume that Division X has a product that can be sold either to outside…
A: Transfer price refers to price at which one department of an entity transfers its output to other…
Q: Problem 19-2A (Algo) Variable costing income statement LO P2 Trez Company began operations this…
A: The income statement can be prepared using different methods as variable and absorption costing. The…
Q: Exercise 5-18 Balance of Work in Process and Finished Goods, Cost of Goods Sold Hung Lee Company…
A: In a job-order costing, a company determines the manufacturing costs of its products or services.…
Q: Cecil cashed in a Series EE savings bond with a redemption value of $15,500 and an original cost of…
A: Answer:- Bonds are debt securities issued by governments or corporations, to raise capital and…
Q: ni.3
A: 1-a) The transfer price of the selling division = $58 Explanation:Step 1: 1-a) Assuming that $3 per…
Q: Sandhill Corporation reports the following January 1, 2023 balances for its defined benefit pension…
A: Under International Financial Reporting Standards (IFRS), pension expense is calculated by…
Q: Mackenzie Mining has two operating divisions, Northern and Southern, that share the common costs of…
A: Lets understand the basics.Service department are the department which supports the operating…
Q: Sheridan Company purchases sails and produces sailboats. It currently produces 1,270 sailboats per…
A: The decision related to make-or-buy depends on comparing the relevant cost of making and the cost of…
Q: The CFP Board recommends that financial planners provide written disclosure document that includes…
A: The CFP Board recommends that financial planners provide clients with a written disclosure document…
Q: Take me to the text Suppose that on November 20, 2021, both Company A and Company B sold inventory…
A: The objective of this question is to calculate the value of inventory as at November 20 for both…
Q: Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4…
A: Below is the projected income statement for Iguana, Inc. for the second quarter.DescriptionApril…
Q: 21. Loveliness Company has a single investment property which had an original cost of P7,200,000 on…
A: The fair value model (FVM) is the method at which the assets are recorded at their fair value in the…
Q: [The following information applies to the questions displayed below.] The income statement for…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: ! Required information Use the following information for the Exercises below. (Algo) [The following…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding equivalent…
Q: a. Total assets of Charter Company equal $900,000 and its equity is $520,000. What is the amount of…
A: The objective of the question is to calculate the liabilities of Charter Company and both the…
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…
A: Schedule of expected cash collections : It is a schedule prepared to determine the amount collected…
Q: Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal…
A: Time value of cash is mainly utilized by organizations or via individuals so that the worth of the…
Q: On January 1, 2024, the general ledger of Big Blast Fireworks includes the following account…
A: we can calculate the ending inventory balance after the NRV adjustment on January 31st.Ending…
Q: What are the formulas to calculate "sales" and "break-even sales" ?
A: The break even sales is the sales amount in simple terms which is sufficient to cover the fixed…
Q: In U.S. GAAP, bond issue costs are considered ________. Group of answer choices a period cost a…
A: The objective of the question is to identify how bond issue costs are treated under U.S. Generally…
Q: The partnership of Ramos, Rios, Safar, and Wong is being liquidated. It currently holds cash of…
A: Partnership -A partnership is a type of corporate structure in which two or more individuals…
Q: Which of the following assets are eligible for bonus depreciation? O All of the choices are correct.…
A: Under current tax laws, all of the listed assets can be eligible for bonus depreciation under…
Q: Brooks Corporation uses the weighted-average method for process costing and has two sequential…
A: In weighted average method all of the costs and the equivalent units of production in beginning…
Q: unland Company had these transactions during the current period. June 12 Issued 84,000 shares of $1…
A: Journal entry :It is a method of recording transactions in the book of original entries by debiting…
Q: ! Required information (The following information applies to the questions displayed below.) Shadee…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One).…
A: To compute the required values, let's go step by step:Calculate the total estimated revenue for the…
Q: Sheridan Corporation reported $230000 in revenues in its 2021 financial statements, of which $91100…
A: When taxable income is less than the book income, deferred tax liability arises because we are…
Q: Zhang Company, an IFRS company, sold $7,000,000 of 6%, 3-year bonds on January 1, 2022. The bonds…
A: The objective of the question is to calculate the effective interest rate for the bonds issued by…
Q: A20-16 Basic EPS (LO 20-2) The Duckworth Ltd. 20X5 financial statements Include the following:…
A: IAS 33 Earnings Per Share sets out how to calculate both basic earnings per share (EPS) . The…
Q: Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main…
A: The objective of the question is to calculate the direct materials price, usage, and budget…
Q: Johnson Electronics manufactures a power supply used in a variety of electronics products, including…
A: It represents the available production time divided by the customer demand. In other words, it's the…
Q: These account balances at December 31 relate to Sportplace Inc.: Accounts Payable...... $ 51,400…
A: Common stock, occasionally appertained to as common shares, is a symbol of power in a…
Q: I needed help with B C and D Impairment entry should it be 6,000?
A: a. To compute the amount of goodwill to be recorded on the date of acquisition, we subtract the fair…
Q: University of Tampa offers high-quality undergraduate-level programs. UT has two principal operating…
A: Direct method :Under this method, support department costs are apportioned over the operating…
Q: ***** 1. If Sarah's wages increase to $9,000 and James's wages decrease to $58,000, and their…
A: The objective of the question is to calculate the Adjusted Gross Income (AGI) for Sarah and James…
Q: Not a graded assignment. pls dont give me wrong answer
A: c. Recording Defined Benefit Expense and Pension Plan Funding in 2023 c.i. Entries under ASPE: Here…
Q: Computing NOPAT, NOPM and RNOA LVMH Moët Hennessy Louis Vuitton SE (LVMH) is a French multinational…
A: Computing NOPAT, NOPM, and RNOA for LVMHExplanation:a. Net Operating Profit After Taxes…
Q: Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: Lower-of-Cost-or-Market Method On the basis of the data shown below: Item Inventory Quantity Cost…
A: The Lower-of-Cost-or-Market Method compares the cost of inventory with its market value and records…
Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…
A: The journal entry to correct the error would be: 2024Dec 31Debit Depreciation Expense $75,000…
Q: On November 1, 2023, Cheng Company (a U.S.-based company) forecasts the purchase of goods from a…
A: Answer:- Forward contract is a standardized item which is traded on exchange it happens between two…
Q: For each circumstance, calculate the SUTA tax owed by the employer. Assume a SUTA tax rate of 3.4%…
A: Under the provisions of SUTAThe maximum earnings subject to tax is $8500Computation of taxable…
dot image plas
Step by step
Solved in 3 steps
- Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
- Rolertyme Company manufactures roller skates. With the exception of the rollers, all parts of the skates are produced internally. Neeta Booth, president of Rolertyme, has decided to make the rollers instead of buying them from external suppliers. The company needs 100,000 sets per year (currently it pays 1.90 per set of rollers). The rollers can be produced using an available area within the plant. However, equipment for production of the rollers would need to be leased (30,000 per year lease payment). Additionally, it would cost 0.50 per machine hour for power, oil, and other operating expenses. The equipment will provide 60,000 machine hours per year. Direct material costs will average 0.75 per set, and direct labor will average 0.25 per set. Since only one type of roller would be produced, no additional demands would be made on the setup activity. Other overhead activities (besides machining and setups), however, would be affected. The companys cost management system provides the following information about the current status of the overhead activities that would be affected. (The supply and demand figures do not include the effect of roller production on these activities.) The lumpy quantity indicates how much capacity must be purchased should any expansion of activity supply be needed. The purchase price is the cost of acquiring the capacity represented by the lumpy quantity. This price also represents the cost of current spending on existing activity supply (for each block of activity). Production of rollers would place the following demands on the overhead activities: Producing the rollers also means that the purchase of outside rollers will cease. Thus, purchase orders associated with the outside acquisition of rollers will drop by 5,000. Similarly, the moves for the handling of incoming orders will decrease by 200. The company has not inspected the rollers purchased from outside suppliers. Required: 1. Classify all resources associated with the production of rollers as flexible resources and committed resources. Label each committed resource as a short- or long-term commitment. How should we describe the cost behavior of these short- and long-term resource commitments? Explain. 2. Calculate the total annual resource spending (for all activities except for setups) that the company will incur after production of the rollers begins. Break this cost into fixed and variable activity costs. In calculating these figures, assume that the company will spend no more than necessary. What is the effect on resource spending caused by production of the rollers? 3. Refer to Requirement 2. For each activity, break down the cost of activity supplied into the cost of activity output and the cost of unused activity.Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
- Carla Vista Company purchases sails and produces sailboats. It currently produces 1,250 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Carla Vista purchases sails at $262 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $94 for direct materials, $84 for direct labor, and $90 for overhead. The $90 overhead is based on $77,500 of annual fixed overhead that is allocated using normal capacity. The president of Carla Vista has come to you for advice. "It would cost me $268 to make the sails," she says, "but only $262 to buy them. Should I continue buying them, or have I missed something?" (a) Prepare a per unit analysis of the differential costs. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct material Direct labor Variable overhead Purchase price Total unit cost Make Sails Carla Vista should tA…Riggs Company purchases sails and produces sailboats. It currently produces 1,200 sailboats per year, operating at normal capacity, which is about 80% of full capacity. Riggs purchases sails at $250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $100 for direct materials, $80 for direct labor, and $90 for overhead. The $90 overhead is based on $78,000 of annual fixed overhead that is allocated using normal capacity.The president of Riggs has come to you for advice. “It would cost me $270 to make the sails,” she says, “but only $250 to buy them. Should I continue buying them, or have I missed something?” (B) If Riggs suddenly finds an opportunity to rent out the unused capacity of its factory for $77,000 per year, would your answer to part (a) change?Harcourt Manufacturing (HM) has the capacity to produce 11,800 fax machines per year. HM currently produces and sells 8,800 units per year. The fax machines normally sell for $280 each. Modem Products has offered to buy 3,800 fax machines from HM for $150 each. Unit-level costs associated with manufacturing the fax machines are $51 each for direct labor and $76 each for direct materials. Product-level and facility-level costs are $68,000 and $83,000, respectively. How much would profit increase (decrease) if HM accepted this special order?