2) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below:1. The salary of the CEO of the company is $250,000 per year.2. Instead of producing the tables, the company could rent its factory space for $85,000 per year.3. Salespeople are paid a commission of $23 for each table sold.4. The depreciation on the machines used to make the tables totals $38,000 per year. The machineshave no resale value and do not wear out through use.5. The tables are made of iron that costs $250 per table.6. The production line - on which workers are assembling the tables - is supervised by a production-manager who is paid $67,000 per year.7. Four machine-hours are required to produce a table. Utility costs are $8 per machine-hour.8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table.9. The advertising expense of the year is $180,000 per year. It covers all the company's products.The company produced 100 tables and sold 80 during the month.What's the amount of Fixed Cost?O 431.840,0025.000,00108.200,00155.200,00O 22.000,00O 52.040,0038.000,00535.000,00O 85.000,003) TablMor Inc. Company manufartures furniture includinntabler

Answer- 535,000 Working Fixed cost are cost that are not dependent of the volume of units produced…

Answered: 2) TablMor Inc. Compar 1. The salary of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the job
Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income Statement Materials cost ($10 per unit) Company president's salary Depreciation on manufacturing equipment Salaries of administrative personnel Labor cost ($4 per unit) Advertising costs (150,000 per year) Shipping and handling ($500 per year) Research and development costs Real estate taxes on factory Inspection costs Easton can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision? Multiple Choice X Materials cost Shipping and handling Inspection costs All of these answers are correct.
4) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below: 1. The salary of the CEO of the company is $250,000 per year. 2. Instead of producing the tables, the company could rent its factory space for $85,000 per year. 3. Salespeople are paid a commission of $23 for each table sold. 4. The depreciation on the machines used to make the tables totals $38,000 per year. The machines have no resale value and do not wear out through use. 5. The tables are made of iron that costs $250 per table. 6. The production line - on which workers are assembling the tables - is supervised by a production- manager who is paid $67,000 per year. 7. Four machine-hours are required to produce a table, Utility costs are $8 per machine-hour. 8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table. 9. The advertising expense of the year is $180,000 per year. It covers all the company's products. The company produced 100 tables and sold 80…
6) TablMor Inc. Company manufactures furniture, including tables. Selected costs are given below: 1. The salary of the CEO of the company is $250,000 per year. 2. Instead of producing the tables, the company could rent its factory space for $85,000 per year. 3. Salespeople are paid a commission of $23 for each table sold. 4. The depreciation on the machines used to make the tables totals $38,000 per year. The machines have no resale value and do not wear out through use. 5. The tables are made of iron that costs $250 per table. 6. The production line - on which workers are assembling the tables - is supervised by a production- manager who is paid $67,000 per year. 7. Four machine-hours are required to produce a table. Utility costs are $8 per machine-hour. 8. Wages are paid to workers that assemble tables. The cost of wages is $55 per table. 9. The advertising expense of the year is $180,000 per year. It covers all the company's products. The company produced 100 tables and sold 80…
The Lombard Company produces and sells office-space dehumidifiers to companies that own or rent office space. (a) Lombard’s materials and labor costs for producing the dehumidifiers are $3,000 per unit and the fixed costs of its dehumidifier production plant are $1.85 million. If Lombard sells a dehumidifier for $5,000 per unit, what is its percent contribution margin? Show your work. (b) If Lombard used revenue-based compensation to pay its sales force, what would be a salesperson’s sales credit for selling 20 dehumidifiers at a price of $4,500? Show your work. (c) If Lombard used the profit-based compensation method described in the course to pay its sales force and sets the dehumidifier’s target price at $5,000 per unit, what would be a salesperson’s sales credit for selling 20 dehumidifiers at a price of $4,500? Show your work. (d) Explain the benefit to Lombard’s management of using the profit-based compensation method of Part (c) over revenue-based compensation for…
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000
Levesque Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (20,000 Units × $26) $ 520,000 Labor (20,000 Units × $20) 400,000 Depreciation on manufacturing equipment* 42,000 Salary of supervisor of engine production 85,000 Rental cost of equipment used to make engines 23,000 Allocated portion of corporate-level facility-sustaining costs 80,000 Total cost to make 20,000 engines $ 1,150,000 *The equipment has a book value of $90,000 but its market value is zero.Required Determine the maximum price per unit that Levesque would be willing to pay for the engines. Determine the maximum price per unit that Levesque would be willing to pay for the engines, if production increased to 24,000 units.
Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:factory space: $250,000 per yearinsurance: $47,000 per yearsupervisor salaries: $125,000 per yearmaterials: $5.00 per lampdirect labor: $2.69 per lamprecycling charge: $0.37 per lampRoadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)
Perez Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,300 units × $13) $ 172,900 Labor (13,300 units × $14) 186,200 Depreciation on manufacturing equipment* 29,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 15,000 Allocated portion of corporate-level facility-sustaining costs 79,000 Total cost to make 13,300 engines $ 551,100 *The equipment has a book value of $109,000 but its market value is zero. Required Determine the maximum price per unit that Perez would be willing to pay for the engines. Determine the maximum price per unit that Perez would be willing to pay for the engines, if production increased to 19,000 units.
Fanning Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,100 Units × $22) $ 288,200 Labor (13,100 Units × $14) 183,400 Depreciation on manufacturing equipment* 38,000 Salary of supervisor of engine production 74,000 Rental cost of equipment used to make engines 24,000 Allocated portion of corporate-level facility-sustaining costs 81,000 Total cost to make 13,100 engines $ 688,600 *The equipment has a book value of $97,000 but its market value is zero. Required Determine the maximum price per unit that Fanning would be willing to pay for the engines. Determine the maximum price per unit that Fanning would be willing to pay for the engines, if production increased to 18,550 units? (For all requirements, round your intermediate calculations and final…
Munoz Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the engines are shown here. Cost of materials (13,100 Units × $19) $ 248,900 Labor (13,100 Units × $12) 157,200 Depreciation on manufacturing equipment* 25,000 Salary of supervisor of engine production 69,000 Rental cost of equipment used to make engines 27,000 Allocated portion of corporate-level facility-sustaining costs 82,000 Total cost to make 13,100 engines $ 609,100 *The equipment has a book value of $108,000 but its market value is zero.Required Determine the maximum price per unit that Munoz would be willing to pay for the engines. Determine the maximum price per unit that Munoz would be willing to pay for the engines, if production increased to 18,650 units. (For all requirements, Round your answers to 2 decimal places.)

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