Department A of K company is being assessed for discontinuation. The contribution to overhead $600,000 is being done. It receives an allocated overhead of $2 million, 10% of which cannotbe eliminated. The elimination of Division A would affect pre-tax income by.$1,200,000 Increase$1,200,000 decrease$600,000 Increase$600,000 decrease

Contribution margin$600,000Controllable fixed overhead (90*$2,000.000)(1,800,000)Segment…

Answered: Department A of K company is being…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Operating Income of $220,000 in 2019, when production was 3,000 units Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 The President of Benoit is under pressure from shareholders to increase operating income by 50% in2020. Management expects per unit data and total fixed costs to remain the same in 2020. Computethe number of units that would have to be sold in 2020 to reach the shareholders desired profit level and say if this a realistic goal?
Last month, Stagecoach Company had a $96,300 loss on sales of $350,000. Fixed costs are $201,300 a month. What sales revenue is needed for Stagecoach to break even? Multiple Choice ences О $446,300 О $551,300 C raw $647,600 10:2
ter 3) i Saved [The following information applies to the questions displayed below.] The following information pertains to Trenton Glass Works for the year just ended. Budgeted direct-labor cost 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 435,000 Actual manufacturing overhead: Depreciation Property taxes Indirect labor $234,000 21,000 82,000 201,000 58,000 33,000 301,000 78,000 Supervisory salaries Utilities Insurance Rental of space Indirect material (see data below) Indirect material: Beginning inventory, January 1 Purchases during the year Ending inventory, December 31 47,000 94,000 63,000 2. Calculate the overapplied or underapplied overhead for the year. (Round your intermediate calculations to 2 decimal place
Subject :- Account
Illustration (Shut down) A Company manufactures 3 products. The present annual income from these are as follows: X Y Total Sales 50,000 40,000 60,000 150,000 Variable Cost 30,000 25,000 35,000 90,000 Contribution 20,000 15,000 25,000 60,000 Fixed Cost 17,000 18,000 20,000 55,000 Profit/Loss 3,000 (3000) 5,000 5,000 The company is concerned about its performance and its considering whether or not to cease selling Y. It is felt that selling prices cannot be raised or lowered without adversely affecting net income. GHC5000 of the fixed cost of Y are directly fixed and will be saved if production cease. All other fixed costs is considered to remain the same. Required Consider whether Y should be closed.
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated?
H4.
Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department's efforts (in percentages) to the other departments is: From S1 S2 S1 S2 To P1 10% 20% ? 10% S1 S2 P1 P2 – P2 $225,000 75,000 62,000 180,000 ?% The direct operating costs of the departments (including both variable and fixed costs) are: 30 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.
None
help me
3rd option: decrease $94,000. 4th option: decrease $24,000.
Harith Company's industrial photo-finishing division, Rho, incurred the following cost and expenses in 2021: Direct Materials Direct Labor Factory Overhead General, selling and administrative Totals VARIABLE P200,000 150,000 70,000 30,000 P450,000 15% FIXED P42,000 48,000 P90,000 During 2021, Rho produced 300,000 units of industrial photo-prints, which were sold for P2.00 each. Oslo's investment in Rho was P500,000 and P700,000 at January 1 and December 31, 2021 respectively. Harith normally imputes interest on investment at 15% of average invested capital. For the year ended December 31, 2021, Rho's return on average investment was 10% 8.6% -5%

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