Problem 11-22 (Algo) Service Department Charges [LO11-4] Sharp Motor Company has a cafeteria that serves two operating divisions-an Auto Division and a Truck Division. The costs of operating the cafeteria are budgeted at $87,000 per month plus $0.80 per meal served. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 63% of the peak- period requirements, and the Truck Division is responsible for the other 37%. For June, the Auto Division estimated it would need 81,000 meals, and the Truck Division estimated it would need 51,000 meals. However, due to unexpected layoffs of employees during the month, only 51,000 meals were served to the Auto Division. Another 51,000 meals were served to the Truck Division as planned. The cafeteria's actual fixed costs for June totaled $96,000 and its actual meal costs totaled $99,600. Required: 1. How much cafeteria cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs to the divisions based on the number of meals served. C this basis, how much cost would be allocated to each division for June? Note: Round your intermediate calculations to 2 decimal places. Auto Division Truck Division 1. Total cost charged 2. Total cost allocated

Activity-Based Flexible Budgeting Foy Company has a welding activity and wants to develop a flexible budget formula for the activity. The following resources are used by the activity: • Four welding units, with a lease cost of $11,000 per year per unit • Six welding employees each paid a salary of $51,000 per year (A total of 12,000 welding hours are supplied by the six workers.) • Welding supplies: $400 per job • Welding hours: 4 hours used per job During the year, the activity operated at 85 percent of capacity and incurred the following actual activity and resource costs. • Lease cost: $44,000 • Salaries: $321,300 • Parts and supplies: $1,014,900 1. Prepare a performance report for the welding activity. In the last column of Foy Company Activity-Based Performance Report, if variance amount is unfavorable select "U" , select "F", if it is Favorable and select "NA" if there is no variance.   Foy Company Activity-Based Performance Report Activity Actual Cost Budgeted Cost…

11 Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $210,000 for November, $190,000 for December, and $180,000 for January Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 55% of sales. The company would like to maintain ending merchandise inventories equal to 45% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,700. Monthly depreciation is $13,700. Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable. Merchandise inventory. Property, plant and equipment, net of $574,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings. Total liabilities and stockholders' equity $ 22,500 72,500 51,975 1,096, 500 $ 1,243,475 $ 256,500. 822,500…

Accepting Business at a Special Price Power Serve Company expects to operate at 82% of productive capacity during May. The total manufacturing costs for May for the production of 31,980 batteries are budgeted as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Total manufacturing costs The company has an opportunity to submit a bid for 3,000 batteries to be delivered by May 31 to a government agency. If the contract is obtained, it is anticipated that the additional activity will not interfere with normal production during May or increase the selling or administrative expenses. $458,800 168,700 47,278 94,000 $768,778 What is the unit cost below which Power Serve Company should not go in bidding on the government contract? Round your answer to two decimal places. per unit

Required information SB Exercise E8-5 to E8-10 [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 520 sun shades in May and 340 in June. Each shade sells for $149. Shadee's beginning and ending finished goods inventories for May are 75 and 50 shades, respectively. Ending finished goods inventory for June will be 60 shades. E8-7 (Algo) Preparing Direct Labor and Manufacturing Overhead Budgets [LO 8-3d] Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $14 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Shadee's manufacturing overhead budget for May and June. May…

WCS Inc. owns some common stock of Palmer Inc. and it just received $1,800 of dividend. If WCS Inc. is subject to a tax rate of 21%, what is the tax on this investment income? A. $148 OB. $164 OC. $189 OD. $226 OE. $282 OF. $324 G. $378 H. None of the above

Doug's Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug's, which contains a delicatessen and restaurant operation, follows (in thousands). Delicatessen Restaurant Total Sales revenue $700 $2,000 $2,700 Costs Purchases 385 1,100 1,485 Hourly wages Franchise fee 35 437 472 21 40 61 Advertising Utilities 50 100 150 49 63 112 Depreciation Lease cost 25 38 63 15 25 40 Salaries 15 25 40 Total costs $595 $1,828 $ 172 $2,423 $ 277 Operating profit $105 The company uses the following performance report for management evaluation. DOWNTONN DOUG'S Net Income for the Year ($000) Actual Results Over- or (Under-) Budget $(900) Actual Results Delicatessen $ 800 Total Budget $2,700 Restaurant Sales revenue $1,000 $1,800 Costa Purchases 465 400 865 1,485 $(620) Hourly wages Franchise fee Advertising Utilities Depreciation Lease cont 40 350 390 472 (82) 24 30 54 61 (7) 50 100 150 150 53 50…

Need help with homework

None