Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $40 respectively. The company produced 10,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. $20 $12 overhead traceable/avoidable $15 $13 fixed variable selling & $ 5 $ 6 admin allocated/unavoidable $12 $2 fixed total cost per unit $ $ 13 Orange Bliss has had low volume in Rocks (2,000 units sold) for some time and is considering dropping that product line. What is the advantage (disadvantage) of dropping this product line? Round to nearest whole number with disadvantage expressed as a negative
Q: Vinubhai
A: I answered your question.
Q: Williams-Santana Incorporated is a manufacturer of high-tech industrial parts that was started in…
A: The objective of the question is to identify whether each situation represents an accounting change…
Q: None
A: In the given scenario, Power Drive Corporation undergoes several transactions affecting its…
Q: Domestic
A: Part 2: Explanation1. Calculate the other expenses per customer:Fixed other expenses / Estimated…
Q: Gadubhai
A: Calculation of the interest expense
Q: During the month of February, Swifty Corporation's employees earned wages of $102,000. Withholdings…
A: To prepare the journal entries for salaries and wages expense, salaries and wages payable, and…
Q: < Clonex Labs, Incorporated, uses the weighted-average method of process costing. The following data…
A: Step 1: In the weighted average method of process costing, The equivalent unit of production is…
Q: i need solution with explanation..
A: The objective of the question is to calculate the quick ratio, also known as the acid-test ratio,…
Q: A prospective MBA student would like to examine the factors that impact starting salary upon…
A: Certainly! Let's break down the process step by step with detailed explanations and examples. 1.…
Q: Urmila
A: Step 1: Show formula version of the solution sheet for a better understanding of the calculations:…
Q: Define Income Statement, Statement of Owners Equity, Balance Sheet, and Cash Flow Statement. How do…
A: The Income Statement, Statement of Owners Equity, Balance Sheet, and Cash Flow Statement are all…
Q: Compute the Cash Collected in March. Total Sales January 40, 000 February 50,000 March 70,000 The…
A: The objective of the question is to calculate the total cash collected by the company in the month…
Q: The equipment acquired on Oct. 2021 was sold on Apr. 2022. How much is the creditable input vat on…
A: Input VAT refers to the Value-Added Tax (VAT) paid by a business on the purchase of goods or…
Q: San Lorenzo General Store uses a periodic inventory system and the retail inventory method to…
A: Cost: This column represents the cost of inventory items.Retail: This column represents the retail…
Q: II. Normal Distribution. The chief budget officer (CBO) of the huge management consulting firm 'Let…
A: The objective of the question is to estimate the percentage of city departments that have 50 or…
Q: Financial Reporting Analysis: a) Evaluate Massy’s latest annual financial statements (balance…
A: a) Financial Performance and Position Evaluation:Massy's latest annual financial statements reflect…
Q: Before Coronado could give Langston's Landscape Company an answer, the company received a special…
A: Incremental analysis:This strategy enables firms to assess the impact of a specific decision, such…
Q: A. Using itemized deductions, determine the income tax payable at the end of the year (TRAIN LAW)…
A: Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…
Q: Perform an abbreviated ratio analysis for Apple and Samsung by computing at least two ratios from…
A: Part 2: Explanation:Step 1: Obtain Financial Statements - Retrieve the financial statements of…
Q: MILESTONE II: Equity Investments, Equity Method, Fair Value Option, Net Assets Not Equal to Market…
A: a. Goodwill computation under equity method: Book value of 30% share of net assets on acquisition…
Q: None
A: Step 1: a. To compute divisional operating income for the two divisions, we subtract the total…
Q: On December 31, 2023, Berclair Incorporated had 540 million shares of common stock and 21 million…
A: Step 1: Step 2: Step 3: Step 4:
Q: 3. Bank Reconciliation Barb Lee Inc. (BLI) is about to reconcile its bank statement for the month of…
A: The objective of this question is to prepare a bank reconciliation statement for Barb Lee Inc. (BLI)…
Q: 2. A company determines that the maximum they should pay for a new machine is $46,679. The company…
A: The objective of the question is to find out the salvage value of the machine at the end of 7 years.…
Q: I need answer expert solutions Need answer step by step
A: Step 1: Step 2: Step 3: Step 4:Step 5:Step 6:Step 7:Step 8:Step 9:Step 10:
Q: None
A: Step 1:Given information: Assets Cash15,150Marketable securities8,020Accounts…
Q: Exercise 10A-5 (Algo) Using Fixed Overhead Variances [LO10-4] The standard cost card for the single…
A: Let's take a closer look at each calculation: 1. Allowed standard hours for the year's production:…
Q: A married decedent left the following inherited properties as part of his gross estate amounting to…
A: Deductions The amount that a person or individual will reduce from the gross income earned is called…
Q: Larry's Woodworks has collected the following data for its cutting board line of products: K Direct…
A: Direct Materials Quantity Variance CalculationThe direct materials quantity variance (DMQV) measures…
Q: Mr. A, Filipino, married, died on January 1, 2020 leaving the following: a.) Property inherited from…
A: Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…
Q: Rahul
A: Gross Pay:Asa's semimonthly pay: $64,400 / 24 = $2,683.33Deductions:401(k) contribution: 3% of gross…
Q: Break-even sales and sales to realize operating income For the current year ended March 31, Kadel…
A: Step 1: To solve for break-even sales and sales to realize operating income, we'll use the…
Q: What is the equilibrium constant, K, at 25°C for this redox reaction under standard conditions? 3…
A: Step 1:To find the equilibrium constant, K, for the given redox reaction under standard conditions,…
Q: On 1 July 2022, Shaggy Ltd leased a processing plant to Scooby Ltd. The plant was purchased by…
A: Lease refers to an agreement taking place between two parties known as lessor and lessee where…
Q: Meman
A: To determine financial advantage or disadvantage of new customer order's:Financial disadvantage by…
Q: Felton Co. produces rubber bands for commercial and home use. Felton reported $4 million residual…
A: The objective of the question is to calculate the required rate of return for Felton Co. given the…
Q: please explain your answer...
A: Step 1: Preparation of journal entries.No.DateAccount Titles and…
Q: [Choose] a worldwide hypermedia system storing, retrieving, and protecting records permanent storage…
A: - **Permanent Storage Place for Records**: They use cloud storage or on-premises servers to ensure…
Q: A company reports the following information for the single product it manufactures. Sales price…
A: Calculation: Requirement A:Selling price per unit $230Less: Variable cost per…
Q: am.111.
A: The objective of the question is to record the adjusting entries for the transactions that occurred…
Q: $100,000 × 4.79079** = $ 479,079 Lease Payments Right - of Use Asset - Present value of an annuity…
A: A financial calculator is shown being used to determine the right-of-use asset in the image you…
Q: Sagar
A: Adjusted divisional income for year 2:Adjusted divisional income = After tax income + Amortized…
Q: answer with proper introduction, narrations explanation, computation steps clearly and completely…
A: In this problem, we are presented with various equity transactions for Ujjal Corporation, a publicly…
Q: The Rosio Hotel Corporation is considering replacing its old hot tub with a new one at a cost of…
A: The objective of the question is to determine whether Rosio Hotel Corporation should replace its old…
Q: Determine Ms. Well's maximum moving expense deduction for 2021, as well as any carry forward that is…
A: The moving expense deduction is a tax deduction that allows taxpayers to deduct certain expenses…
Q: (a) Which compensation method (the old one or the new one) will the manager prefer? Please explain…
A: The remuneration that is awarded to an employee in exchange for their services or their…
Q: Sales in Month Units April 3,440 May 3.885 June 4,620 4,135 3,970 July August Croy's finished goods…
A: Step 1: Construct the production budgetTotal needs = Budgeted sales + Desired ending…
Q: For each of the mortgages described in problems 6 through 12, create a partial amortization schedule…
A: The objective of the question is to create a partial amortization schedule for the first four…
Q: In the audit of the orporation for the year 2020, the following items and Information appeared in…
A: Depreciation is a decrease in the value of assets such as equipment due to wear and tear,…
Q: The Street Division of Labrosse Logistics Just started operations. It purchased depreclable assets…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Olin Company manufactures and distributes carpentry tools. Production of the tools is in the mature portion of the product life cycle. Olin has a sales force of 20. Salespeople are paid a commission of 7 percent of sales, plus expenses of 35 per day for days spent on the road away from home, plus 0.50 per mile. They deliver products in addition to making the sales, and each salesperson is required to own a truck suitable for making deliveries. For the coming quarter, Olin estimates the following: On average, a salesperson travels 6,000 miles per quarter and spends 38 days on the road. The fixed marketing and administrative expenses total 400,000 per quarter. Required: 1. Prepare an income statement for Olin Company for the next quarter. 2. Suppose that a large hardware chain, MegaHardware, Inc., wants Olin Company to produce its new SuperTool line. This would require Olin Company to sell 80 percent of total output to the chain. The tools will be imprinted with the SuperTool brand, requiring Olin to purchase new equipment, use somewhat different materials, and reconfigure the production line. Olins industrial engineers estimate that cost of goods sold for the SuperTool line would increase by 15 percent. No sales commission would be incurred, and MegaHardware would link Olin to its EDI system. This would require an annual cost of 100,000 on the part of Olin. MegaHardware would pay shipping. As a result, the sales force would shrink by 80 percent. Should Olin accept MegaHardwares offer? Support your answer with appropriate calculations.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?
- 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?Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of cost of services sold in good form. 2. How does this cost of services sold statement differ from the cost of goods sold statement for a manufacturing firm?Orange Bliss manufactures two products, Frozen and Rocks, that sell for $80 and $60 respectively. The company produced 100,000 units last year and at that level of activity, the average cost per unit were: Frozen Rocks direct materials $20 $15 direct labor $18 $12 variable manu. overhead $11 $18 traceable/avoidable fixed $15 $13 vole selling & admin $5 $6 allocated/unavoidable fixed $18 $11 total cost per unit $$___ Orange Bliss received an inquiry from the Bartender's Association of America to buy 10,627 "Rocks" for $44 each. They have capacity to fill this order without interfering with normal customer demand. The variable selling costs for this order are half as regular units and one new fixed costs is needed to stamp their logo on the items, costing $4,000. What is the advantage (disadvantage) of accepting this order? Round to nearest whole number with disadvantage expressed as a negative.
- Han Products manufactures 22,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.60 10.00 2.40 6.00 $ 22.00 An outside supplier has offered to sell 22,000 units of part S-6 each year to Han Products for $20 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $72,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?Rossiter Fittings produces two models of pipe fittings for underwater lines. The two models (RF-12 and RF-25) have the following characteristics, as developed by a product cost analyst RF-12 RF-25 $ 527 $367 11,997 $ 387 Selling price per unit Variable cost per unit $ 307 Expected units sold per year 3,483 The total fixed costs per year for the company are $1,118,960. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the product mix is the same at the break-even point, compute the break-even point in units. c. The head of marketing agrees with the data provided by the cost analyst but believes that the sales of the RF-12 model will be double in units from what the cost analyst predicts. The head of marketing agrees that the total unit volume is likely to be as predicted by the cost analyst. What would be the break-even point of sales in units using the assumptions of the head of marketing?HydroPlus manufactures three products A, B and C. There is 200,000 hours of skilled labour available in the year at a cost of $10 per hour. The following information relates to each product. Product A B C Selling price per unit $50 $54 $84 Variable costs per unit $10 $12 $20 Labour hours 2 3 4 Maximum demand 40,000 20,000 30,000 HydroPlus is facing a shortage of skilled labour and wishes to maximise the profitability of the company. Assuming all relevant information is provided, in what order should HydoPlus manufacture its products to maximise profit in the current year? Question 47 options: C then A A then C A, C then B None of the given answers
- Han Products manufactures 40,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per uni for part S-6 is: Direct materials Direct labor Variable manufacturing overhead $ 3.30 12.00 2.70 Fixed manufacturing overhead Total cost per part 6.00 $ 24.00 An outside supplier has offered to sell 40,000 units of part S-6 each year to Han Products for $22 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $90,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer? Answer is complete but not entirely correct. Financial advantage $ 8,000 ×The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense S $20 $10 $5 $7 O $23,200 decrease $27,000 Increase $50,800 Increase O $63,000 Increase $10 $8 The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 6,300 Homs next year at 20% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 30%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $10,800 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the…Sohar Company manufactures 10,000 units of a spare part ALFA each year for use on its production line. At this level of activity, the cost per unit for part ALFA is as follows: Direct materials $ 2.40 Direct labor 3.50 Variable manufacturing overhead 1.60 Fixed manufacturing overhead 5.00 Total cost per part $12.50 An outside supplier has offered to sell 15,000 units of spare part ALFA each year to Sohar Company for $11.75 per part. If Sohar Company accepts this offer, the facilities now being used to manufacture ALFA could be rented to another company at an annual rental of $75,000. However, Sohar Company has determined that $3 of the fixed manufacturing overhead being applied to part ALFA would continue even if part ALFA were purchased from the outside supplier. Required: a) Prepare computations showing how much profits will increase or decrease if the outside supplier’s offer is accepted. b) Also mention which cost is opportunity cost and…