1. Coronado is the primary provider of spirit apparel for many high schools. Management has been evaluating two of its key products forchanges in selling price and sales volume in comparison to expectation: the quarter-zip jacket and the hooded sweatshirt. Coronado'sexpectations and actual results were as follows.Quarter-zipSweatshirtBudgeted SalesVolumeSales price variance490Sales activity variance $tA630Actual SalesVolume550570BudgetedSelling Price$44$47ActualSelling Price$46$45How much was Coronado's sales price variance this year? How much was its comprehensive sales activity variance?Budgeted VariableUnit Cost$25$27

Sale variance is the amount of difference that exists between the budgeted amount of sales and the…

Answered: How much was Coronado's sales price…

How much was Coronado's sales price variance this year? How much was its comprehensive sales activity variance? Sales price variance $ Sales activity variance $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...

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Comparative Income Statements and Sales Performance Variances; Current to PriorYear Green Grow Inc. manufactures riding lawn mowers that it sells to the large discount storessuch as Walmart, Lowe’s, and Home Depot. The mowers are marketed as a “value” product, withgood quality at a very good price. The company’s two products are the Quality mower, which lastyear sold for $1,200 (the discounters retailed it for $1,500), and the Heavy Duty model, which GreenGrow sold for $1,600 (and was retailed for $2,200). At the end of last year, the company had comeunder increased price competition from other manufacturers. The company management believes itmust reduce its price in the current year on both products to keep its current market share with salesof 3,500 units. The unit variable costs for the Quality and Heavy Duty products are $800 and $950,respectively. Management does not believe it can reduce these variable costs for the coming yearbut will begin to study ways to do so for future…
Current Attempt in Progress 4 Swifty is the primary provider of spirit apparel for many high schools. Management has been evaluating two of its key products for changes in selling price and sales volume in comparison to expectation: the quarter-zip jacket and the hooded sweatshirt. Swifty's expectations and actual results were as follows. Quarter-zip Sweatshirt Budgeted Sales Volume Sales price variance Sales activity variance eTextbook and Media Save for Later 430 600 Actual Sales Volume 500 540 Budgeted Selling Price $38 $53 Actual Selling Price How much was Swifty's sales price variance this year? How much was its comprehensive sales activity variance? $40 $51 Budgeted Variable Unit Cost $24 $30 Attempts: 0 of 3 used Submit Answer
The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did not explain the monthly purchasing cost. He knew that nonstandard orders (for example, one requiring an overseas supplier) took more time and effort. He collected data on the number of nonstandard orders for the past 12 months and added that information to the data on purchasing cost and total number of purchase orders. Multiple regression was run on the above data; the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 total purchase orders and 45 nonstandard orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders and 580 nonstandard orders? What will estimated total purchasing cost be? What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 2? (Round your answers to the nearest dollar.)
Computing breakeven sales and sales needed to earn a target profit; performing sensitivity analysis This problem continues the Piedmont Computer Company situation from Chapter 19. Piedmont Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted-average sales price per unit is $750 and the weighed-average variable cost per unit is $450. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $156,000. Requirements What is the number of units that must be sold each month to reach the breakeven point? If the company currently sells 945 units per month, what is the margin of safety in units and dollars? If Piedmont Computer Company desires to make a profit of $15,000 per month, how many units must be sold? Piedmont Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $90,000 per month, but the…
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Company’s purchasing cost and number of purchase orders.The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Intercept 15,021 (rounded to the nearest dollar)X variable 1 9.74 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the vari-able rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchaseorders, what is the total estimated purchasing cost for that month? (Round your answer tothe nearest dollar.)3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year andexpects 5,340 purchase orders? What will estimated total purchasing cost be? (Round youranswer to the nearest dollar.) What is the total fixed purchasing cost? Why doesn’t it equalthe fixed cost calculated in Requirement 1?
Beagle Clothiers uses a weighted score for the evaluation andselection of its suppliers of trendy fashion garments. Each sup-plier is rated on a 10-point scale (10 = highest) for four differentcriteria: price, quality, delivery, and flexibility (to accommodatechanges in quantity and timing). Because of the volatility ofthe business in which Beagle operates, flexibility is given twicethe weight of each of the other three criteria, which are equallyweighted. The table below shows the scores for three potentialsuppliers for the four performance criteria. Based on the highestweighted score, which supplier should be selected?
The May 2024 revenue and cost information for Boise Outfitters, Inc. follows: 1(Click the icon to view the revenue and cost information.) Prepare a standard cost income statement for management through gross profit. Report all standard cost variances for management's use. Has management done a good or poor job of controlling costs? Explain. (Use a minus sign or parentheses to enter any contra expenses. Enter all other amounts as positive numbers.) Boise Outfitters, Inc. Standard Cost Income Statement For the Month Ended May 31, 2024 (1) Sales Revenue $540,000 (2) Cost of Goods Sold at standard $344,000 (3) Manufacturing Cost Variances: (4) Direct Materials Cost Variance (5) Direct Materials Efficiency Variance (6) Direct Labor Cost Variance 4,800 (7) Direct Labor Efficiency Variance (8) Variable…
Cole Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: (Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot and the contribution marain per square foot to two decimal places.) Units displayed per square foot: Designer Moderately priced Contribution margin per unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity Show Transcribed Text Data table CO Average sale price Average variable costs Average contribution margin Average fixed costs (allocated) Average operating income. Designer $ $ Ĉ Product Moderately Priced Per Item Designer Moderately Priced 210 $ 100 110 15 95 $ 85 21 64 5 59 The Cole Company store in Grand Junction, Colorado, has 15,000 square feet of floor space. If Cole…
Using Multiple Regression Results to Construct and Apply a Cost Formula The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did not explain the monthly purchasing cost. He knew that nonstandard orders (for example, one requiring an overseas supplier) took more time and effort. He collected data on the number of nonstandard orders for the past 12 months and added that information to the data on purchasing cost and total number of purchase orders. Month Purchasing Cost Number of Purchase Orders Number of Nonstandard Orders January $18,860 370 53 February 18,065 330 35 March 19,250 370 61 April 18,050 410 14 May 19,345 400 73 June 19,500 450 55 July 19,670 460 30 August 20,940…
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Making sales mix decisions Moore Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: The Moore Company store in Grand Junction, Colorado, has 14,000 square feet of Floor space. If Moore Company emphasizes moderately priced goods, it can display 840 items in the store. If Moore Company emphasizes designer wear, it can display only 560 designer items. These numbers are also the average monthly sales in units. Prepare an analysis to show which product the company should emphasize.
Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: (Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot - X Data table CIDS Product Per Item Designer Designer Moderately Priced 180 $ Units displayed per square foot: 65 Designer Moderately priced Contribution margin per unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity ▼ Decision: * esc #t a $ 1 2 3 4 LOL WIER 15 % 5 T 6 44. & Y hp 7 FIS . 00 8 19 Average sale price Average variable costs Average contribution margin 115 20 Average fixed costs (allocated) Average operating income $ 95 $ 56 The Stenback Company store in Grand Junction, Colorado, has 11,000 square feet of floor space. If Stenback Company emphasizes moderately…