Hankiez has a signature scarf for women that is very popular. Certain production and marketing data are indicated below: Cost per yard of cloth P36.00 Allowance for rejected scarf 5% of production Yards of cloth needed per scarf 0.475 yard Airfreight from supplier PO.60/yard Motor freight to customers PO.90 /scarf Purchase discounts from supplier 3% Sales discount to customers 2% The allowance for rejected scarf is not part of the 0.475 yard of cloth per scarf. Rejects have no market value. Materials are used at the start of production. Calculate the standard cost of cloth per scarf that Hankies Unlimited should use in its cost sheets. O P16.87
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- BE16.6- Using Excel to Determine the Markup Percentage Using the Cost-Plus Markup Method PROBLEM In evaluating the selling prices for products at her part-time retail job, Anaya asked her supervisor how the company sets its prices. Her supervisor told her it applies a steady markup percentage on each product's cost. She selected a lightweight jacket off the rack. Her supervisor looked at the selling price and then told Anaya the cost the company had paid for the item. Selling price of jacket Cost of jacket Alternative markup percentage $ 45.00 30.00 25% Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. What markup percentage on cost is the company using to set its selling price? Markup percentage based on cost If the company instead used the alternative markup percentage on cost, what would the selling price have been? Selling…Ex 5-35 (Algo) ABC; Selling Costs (LO 5-2, 5-4) Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Pay-per-click/Search…Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Pillard, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 6,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 6,000 Garments $ 7,500 Garments 5,625 2.40 9,000 Garments
- Homoward Hardware buys cat liter for $6 less 20% per bag. The store's overhead is 45% of cost and the owner requires a profit of 20% of cost (a) (b) (c) (d) (e) (7) For how much should the bags be sold? What is the amount of markup included in the selling price? What is the rate of markup based on selling price? What is the rate of markup based on cost? What is the break-even price? What operating profit or loss is made if a bag is sold for $7 509Supply-chain effects on total relevant inventory cost. Couture Jeans orders high-quality denim fabric from two different suppliers: Designer Fabrics and Cannon Cotton. Couture would like to use only one of the suppliers in the future. Due to variations in quality, Couture would need to inspect 20% of Designer’s 30-yard bolts (rolls) and 30% of Cannon’s. The following data refer to costs associated with the two suppliers.True Value Producers manufactures rum cakes, andal CF Supplier's List Price which the following details are available: inventory includes three items for Raw Materials OPD Net Realisable Value Flour (bag) Sugar (bag) Raisins (boxes) 2$ 3 600 2 900 4 200 5 100 2 800 4 100 The company receives 2 %% trade discount from its suppliers and it also takes advantage of a 2% discount for prompt payment. : Calculate the value of raw materials that should be shown in inventory in the statement of financial position at year end.
- The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses. Fixed expenses: Advertising Rent Salaries Total fixed expenses $6.50 5.50 $ 12.00 Break-even point in unit sales Break-even point in dollar sales Annual Required: 1. What is Shop 48's annual break-even point in unit sales and dollar sales? Note: Do not round intermediate calculations. $ 726,900 X $ 42,000 32,000 160,000 $ 234,000 X Answer is complete but not entirely correct. 36,345 pairs(b) An manufacturer produce a goods and sold all goods to a whole seller by adding 10% profit. The whole seller sold goods to a retailer by adding 5% margin that in turn sold goods to the customer by adding 5% cost and 10% margin of cost. VAT was paid and collected at each stage as per rule and rates. Show the amount of VAT at each stage and indicate the ultimate burden to the customer. The manufacturer incurred following expense in connection with its production: raw material Tk.7,00,000; direct wages Tk.1,50,000; manufacturing overhead Tk.2,00,000 administration expenses Tk.50,000; selling expenses Tk.30,000.Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 6.50 5.50 $ 12.00 Annual $ 42,000 32,000 160,000 $ 234,000 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 31,350 pairs of shoes are sold? (Do not round intermediate…
- Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries. Total fixed expenses $ 6.50 5.50 $12.00 Annual New break-even point in unit sales New break-even point in dollar sales $ 42,000 32,000 160,000 $ 234,000 4. The company is considering paying the Shop 48 store manager an incentive commission of 80 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round…The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes Selling price $ 25.00 Variable expenses: Invoice cost $ 11.50 Sales commission 3.50 Total variable expenses 15.00 Annual Fixed expenses: Advertising $ 44,000 34,000 170,000 Rent Salaries Total fixed expenses $ 248,000 4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) New break-even point in unit sales pairs New break-even point in dollar salesAfrica Traders is not a registered VAT vendor and buys and sells furniture. Africa Traders sold a dining room table for R23 800. The mark-up percentage on cost is 12,5%. What is the cost price of the product?