1. Given the preceding information, what is the markup percentage on total direct costs? ________- 2. Suppose Whang is asked to bid on a job with estimated direct costs of $599,000. What is the bid? $________
Q: Please answer A,B,C
A: Requirement:- a)Computation of working capital as follows under:- Working capital =Current…
Q: Which of the following is a taxable retiring allowance? Choose the correct answer. O A. payments…
A: Retiring allowance is the amount which is paid to the employees or officers on the retirement of…
Q: Which of the following income is subject to final tax if received by an individual taxpayer? I.…
A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital gain…
Q: 1. After determining the total product cost of P100.00 per unit, Mr. Abecee the owner, decided to…
A: The question is based on the concept of Cost Accounting. Retail price is calculated by adding the…
Q: in bankruptcy for several more years. What are the 2014 tax consequences to Rebecca from the loan?…
A: Given in the question: Rebecca is the owner of the bar but her interest is only 20% for which she…
Q: Neoliberalism benefited mainly: O the middle and upper classes O the poor O the countryside O urban…
A: Neoliberalism: Neoliberalism is a policy that encompasses both political and economical policies…
Q: Below are departmental income statements for a guitar manufacturer. The company classifies…
A: DEPARTMENT CONTRIBUTED TO OVERHEAD The departmental contribution to overhead is the gross profit…
Q: In 2010, the issued a ruling that makes it more difficult for profit-seeking firms to offer unpaid…
A: Introduction The compensation received by a person or firm that is employed to compute tax…
Q: b. Compute the total increase in income if the departments with sales less than avoidable costs, as…
A: 1. Elimination of departments with sales less than avoidable cost will result in the following 2…
Q: Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is…
A: The costs can be allocated to different departments using base percentage allocation method. The…
Q: Cash and cash equivalents on 31 December 2021 comprised cash in the bank of R3 000, cash float oll…
A: The cash flow statement is prepared and all the directly cash flow that it takes place meaning that…
Q: On April 12, Dr. Rowan accepted a $10,000, 60-day, 11% note from Bill Moss granting a time extension…
A: Solution... Date of acceptance = 12 April Due date = 11 Jun Date of discount = 13 may Discount…
Q: Cracker & Company sold merchandise to a customer on credit. The sale price was $8,000. What would…
A: Accounting equation is the main foundation of double-entry book keeping system. It shows the…
Q: During 2022, Sunland Corporation had the following amounts, all before calculating tax effects:…
A: Income tax expense = Income before taxes×Tax rate = $490,000×33% = $161,700
Q: Hadden Corporation is evaluating a capital investment opportunity. This project would require an…
A: Net present value method :- It is defined as the difference between the present value of cash…
Q: The following data relate to the operations of Picanuy Corporation, a wholesale distributor of…
A: Cash budget records the estimation of transactions related to cash inflow and outflow for a period.…
Q: Dunbrook Travel, Inc. acquired an 80% interest in Ocean Cruises on December 31 for $970,000.…
A: In relation to its investment, return on investment is a proportion of net income. It is a…
Q: cost of $63,616 has an estimated residual value of $5,755 and an estimated life of 4 years or 16,212…
A: In units-of-activity method, depreciation expense is calculated on the basis of usage of units .…
Q: Which of the following accounts would not appear on a balance sheet a. Deferred charges b.…
A: Balance Sheet is a financial statement that records all the assets, liabilities and equity of the…
Q: Why has the current 10-yr US Treasury changed from 2.79% in August to 3.51% now? Why is it…
A: The current 10-year US Treasury has changed from 2.79% in August to 3.51% now due to an increase in…
Q: Required information [The following information applies to the questions displayed below.] Megamart…
A: Return on investment (ROI) :— It is calculated by dividing net operating income by average operating…
Q: 11. What are consolidated financial statements?
A: Financial statement includes Income statement, balance sheet, statement of owner's equity and cash…
Q: and signed last year's tax return on April 3 but forgot to mail the return until the morning of Apri…
A: The due date for filing the return is 15th April and due date for payment of tax is 15th July
Q: On December 28, 2024, Videotech Corporation (VTC) purchased 17 units of a new satelite uplink system…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: The income statement for Symbiosis Manufacturing Company for the year is as follows: Sales (10,000…
A:
Q: Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children learn basic…
A: The term "cost of production" refers to the sum total of all expenses that a company must pay in…
Q: LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the…
A: The term "cost of goods sold" (COGS) refers to the expenses that are incurred directly in the…
Q: What is Xi's net cash inflow for March? 1. Prepare a cash flow statement 2. Calculate the cash…
A: Cash flow budget is an estimated statement of all cash receipts and all cash payments that are…
Q: A and B (AB partnership) decide to form a partnership. A already has a business in operation and he…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Tandem Company manufactures two products (D and F). The overhead costs ($89,750) have been divided…
A: Solution.. Total packed order = 75 + 175 = 250 Total packing costs = $18,750
Q: Pearson Co issue its $199500 at a price of 97, the stated rate is 6%, the bond term is 4 years, and…
A: The bonds are issued at a discount as the issue price is less than the face value. Interest expense…
Q: Compute the break-even point in dollar sales for next year assuming the machine is installed.…
A: The contribution margin is calculated as difference between sales and variable costs. The…
Q: Following is a table for the present value of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2…
A: Information is given in the question: The amount received at the end of each year is 7,414 Amount…
Q: 4) Create a budget on a spreadsheet supposing you earn $45,000 a year
A: Budget is the estimation of revenue and expense prior to start the operation. To manage the working…
Q: The following financial information is from Cook Company: Accounts Payable Land Inventory Accounts…
A: PROPERTY PLANT & EQUIPMENT Property Plant & Equipment are Tangible Fixed Assets.…
Q: ow the price of gold is suppressed? a. Lending gold to bullion banks b. Selling the gold in…
A: Price A product's price is its monetary value as a medium of exchange. The cost of a good or…
Q: Information from the records of Conundrum Company for September was as follows: Sales $307,500…
A: Solution... Total product cost = Direct Material used + Direct labor + overhead (variable +…
Q: fixed asset with a cost of $25,104 and accumulated depreciation of $22,593.60 is sold for $4,267.68.…
A: The gain or loss on sale of fixed assets is calculated as difference between book value of asset and…
Q: BGP Electrical Supply is developing its annual financial statements at December 31, current year.…
A: The cash flow statement is the one of the financial statements of the business. The activities of…
Q: 5. Jet Company manufactures a product that passes in four departments in a continuous process.…
A: In process costing, if lost units are recognised during the process then the cost of lost units will…
Q: vacation property valued at $28,000 was bought for 240 payments of $220 due at the end of every…
A: Answer : APR(Monthly) Using TVM calculation : I = (FV = 0, PV = 28000, PMT =-220, N = 240) I =…
Q: Divine Apparel has 3,800 shares of common stock outstanding. On October 1, the company declares a…
A: The dividend is paid to all the shareholders including common stock holders and preference…
Q: how the stock control methods and the costing methods can improve the profitability and productivity…
A: for the directors of the company it is important to work in the welfare of the company and to…
Q: Write the method used to identify whether the interest is compounded annually or at some other…
A: Interest indicates the additional amount to be paid or received in consideration of the principal…
Q: Please answer question 1 in its entirety. I am using another question for number 2 Paul…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: PLEASE ANSWER ASAP. DO NOT USE EXCEL The HO ships merchandise to the branch at 50% above cost. On…
A: Given Information: Beginning Inventory = P15,000 Shipments from HO = P110,000 Ending Inventory =…
Q: Brief Exercise 10-11 (Algo) Calculate retained earnings (LO10–5) Diamond Dresses began the year with…
A: In this question, we need to compute the ending balance of Retained Earnings Account assuming there…
Q: Date Spot Rate $0.0092 368 December 1, 2020 December 31, 2020 January 31, 2021 $0.0090 (2000)…
A: Amt to be paid on Jan 31, 2020- $40 million Korean Won forward rate on Dec 1, 2020 for 31 Jan, 2020…
Q: at the end of 2021, $250,000 at the end of 2022, $2 the end of 2024). What is the amount of interest…
A: The interest expense is 10% of the balance due at the end of each year.
Q: The balance on Ramon Felipe's credit card on January 19, his billing date, was $313.13. For the…
A: Computation of total balance Period Transaction Transaction value No. of days Balance Total…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Whang's direct costs and subcontractor costs as well as an amount referred to as “
Revenue | $8,634,330 | ||
Direct materials | $2,234,000 | ||
Direct labor | 1,862,000 | ||
Subcontractors | 3,545,000 | 7,641,000 | |
Overhead and profit | $993,330 |
Required:
1. Given the preceding information, what is the markup percentage on total direct costs?
________-
2. Suppose Whang is asked to bid on a job with estimated direct costs of $599,000. What is the bid?
$________
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Whang Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Whang's direct costs and subcontractor costs as well as an amount referred to as “overhead and profit.” Whang's bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors' costs. These are totaled, and a markup is applied to cover overhead and profit. In the coming year, the company believes it will be the successful bidder on 10 jobs with the following total revenues and costs: Revenue $9,226,800 Direct materials $2,212,000 Direct labor 1,834,000 Subcontractors 3,643,000 7,689,000 Overhead and profit $1,537,800 Required: 1. Given the preceding information, what is the markup percentage on total direct costs? ______% 2. Suppose Whang is asked to bid on a job with estimated direct costs of $553,000. What is the bid? $_________ 3. Briefly explain how Whang Construction’s accountant might…Johnny Lopez Construction Company is a general contractor that specializes in custom residential housing. Each job requires a bid that includes Lopez's direct costs and subcontractor costs as well as an amount referred to as "overhead and profit." Lopez's bidding policy is to estimate the costs of direct materials, direct labor, and subcontractors'costs. These are totaled, and a markup is applied to cover overhead and profit. In the coming year, the company believes it will be the successful bidder on 10 jobs with the following total revenues and costs: Revenue P8,740,000 Direct materials P2,250,000 1,900,000 3,450,000 Direct labor Subcontractors 7,600,000 PL140.000 Overhead and profit Required: 1. Given the preceding information, what is the markup percentage on total direct costs? 2. Suppose Lopez is asked to bid on a job with estimated direct costs of P 750,000. What is the bid? If the customer complains that the profit seems pretty high, how might Lopez counter that accusation?McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020. (Click the icon to view the data.) Engineering labor-hour costs are variable costs. Engineering support costs for each year depend on the engineering support capacity that McCarty chooses to maintain each year (that is, the number of jobs it can do each year). Engineering support costs do not vary with the actual number of jobs done in a year. Read the requirements. Requirement 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020. The amount unused capacity is jobs and the cost of unused capacity is Requirement 2. Suppose McCarty can add or reduce its engineering support capacity in increments of…
- Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Cost Driver Annual Cost Annual Driver Volume Picking order Number of items $ 353,875 372,500 items Delivering order Number of orders 1,190,000 35,000 orders Handling complaints Number of complaints 40,500 150 complaints Total delivery cost $ 1,584,375 The intern selected two customers, who were frequent customers,…Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Picking order Delivering order Handling complaints Total delivery cost Cost Driver Number of items Number of orders Number of complaints Annual Cost $ 353,875 1,190,000 40,500 $ 1,584,375 Total order value (before delivery charge) Number of orders Total number of items Number of delivery complaints The intern selected two customers,…Fanning Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two Jobs; it cannot accept both because they must be performed at the same time and Fanning does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor If either job is accepted. Furthermore, additional Insurance will be required if elther job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials. Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Required A Required a. Assume that Fanning has decided to accept one of the two Jobs. Fill in the information relevant to selecting one job versus the other. Recommend…
- Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Cost Driver Annual Cost Annual Driver Volume Picking order Number of items $ 330,750 367,500 items Delivering order Number of orders 942,500 32,500 orders Handling complaints Number of complaints 32,500 125 complaints Total delivery cost $ 1,305,750 The intern selected two customers, who were frequent customers,…Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Picking order Delivering order Handling complaints Total delivery cost Cost Driver Number of items Number of orders Number of complaints Annual Cost $ 308,125 720,000 40,000 Annual Driver Volume 362,500 items 30,000 orders 160 complaints $ 1,068,125 The intern selected two customers, who were frequent customers, to use as an…Recently, the sales and marketing manager for Pasifika Company, Mr. Reece Rooney couldn’t understand the result of two bids that the firm has submitted. According to the company’s policy, a 50 percent mark-up is added to the full manufacturing cost when calculating the bid. One particular job (Job A01) had been rejected by a prospective customer since the proposed bid was $4 per unit higher than the winning bid. However, a customer has accepted a second job (Job B01) and was pleased with the favorable bid. This customer revealed that Pasifika’s price was $44 per unit lower than the next-lowest bid. Reece knew that the implementation of the cost leadership strategy has resulted in Pasifika’s competitive advantage, therefore he assumed that the issue must be related to cost allocation procedures. When Reece further investigated the matter, he found that Pasifika used a pre-determined plantwide overhead rate based on direct labor hours. The budgeted data used to calculate this rate…
- Recently, the sales and marketing manager for Pasifika Company, Mr. Reece Rooney couldn’t understand the result of two bids that the firm has submitted. According to the company’s policy, a 50 percent mark-up is added to the full manufacturing cost when calculating the bid. One particular job (Job A01) had been rejected by a prospective customer since the proposed bid was $4 per unit higher than the winning bid. However, a customer has accepted a second job (Job B01) and was pleased with the favorable bid. This customer revealed that Pasifika’s price was $44 per unit lower than the next-lowest bid. Reece knew that the implementation of the cost leadership strategy has resulted in Pasifika’s competitive advantage, therefore he assumed that the issue must be related to cost allocation procedures. When Reece further investigated the matter, he found that Pasifika used a pre-determined plantwide overhead rate based on direct labor hours. The budgeted data used to calculate this rate…Recently, the sales and marketing manager for Pasifika Company, Mr. Reece Rooney couldn’t understandthe result of two bids that the firm has submitted. According to the company’s policy, a 50 percent mark-upis added to the full manufacturing cost when calculating the bid. One particular job (Job A01) had beenrejected by a prospective customer since the proposed bid was $4 per unit higher than the winning bid.However, a customer has accepted a second job (Job B01) and was pleased with the favorable bid. Thiscustomer revealed that Pasifika’s price was $44 per unit lower than the next-lowest bid.Reece knew that the implementation of the cost leadership strategy has resulted in Pasifika’s competitiveadvantage, therefore he assumed that the issue must be related to cost allocation procedures. When Reecefurther investigated the matter, he found that Pasifika used a pre-determined plantwide overhead rate basedon direct labor hours. The budgeted data used to calculate this rate…Lebanon Metal Company (LMC), a manufacturer of various metal parts, must decide whether to enter the competition to become the supplier of transmission housings for Gulf Electric, a company that produces the housings in its own in-house manufacturing To compete, LMC must purchase a new forge that will cost $150,000. If LMC gets the order, it may be able to sell as many as 3,000 units per year to Gulf Electric for $60 each, and costs will be $15 per unit. The firm expects that the project will have about five-year product life. The firm also estimates that the amount ordered by Gulf Electric in the first year will be ordered in each of the subsequent four years. The initial investment can be depreciated on a MACRS-GDS basis over a 5 –year period, and the tax-rate is expected to remain 40%. At the end of five years, the forge is expected to retain a market value of $50,000 at the end of year 5. LMC’s before tax MARR is 15% per year.