Problem 5 Mighty Muffler, Inc. operates an automobile service facility, which specializes in replacing mufflers on cars. The following table shows the costs incurred during a month when 750 mufflers were replaced. Number of Muffler Replacements 750 500 1.000 Total costs Fixed costs Variable costs Total costs Cost per muffler replacement Fixed cost Variable cost P60,000 37,500 97,500 a b. f k Total cost per replacement Required: Fill in the missing amounts. m
Q: P16-5. Please show all your workings clearly.
A: Earning Per Share Earning per share is considered to be the important calculated tool for the…
Q: What are some major adjustments required when converting from fund financial statements to…
A: major adjustment for converting from fund financial statements to government-wide statements are…
Q: imited company. What id s downside of incorporation in these circumstances? Perpetual succession. A…
A: A partnership is a legal process for two or more organizations to control and run a business and…
Q: 8ption plan, National Corporation granted 12 million options on January 1, 2021, that permit…
A: Intially 12 million options are granted on 1st of January 2021 and the vesting date is 31st of…
Q: The company, North S.L., has the following information in the Balance Sheet and Profit and Loss…
A: Note: “As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…
Q: A company produced 500 units of a product and incurred the following costs. Direct materials,…
A: Contribution margin: The balance when the sales are deducted by the variable costs is known as…
Q: Read the scenario and answer the question. The net income of Cruz', a department store, decreased…
A: Income refers to the earnings that are received in the normal course, either by the individual as…
Q: The following selected transactions were completed by Air Systems Company during January of the…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
Q: Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined…
A: Journal entry - It refers to the process where the business transactions are recorded in the books…
Q: WOSking capital fox all Years5? it al fox all Yeas? As Reported Annual Balance Sheet Report Date…
A:
Q: You must evaluate a proposal to buy a new milling machine. The purchase price of the milling…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A mining company is offered a 9-year lease for a coal mine at a cost of P120M. The engineers…
A: Present worth reflects the present value of the amount of money with respect to its value in the…
Q: Cash balance per bank $4,500 Outstanding checks $200 Deposits in transit $1,000 Credit memo for…
A: These adjustments are performed to bring the financial results of the organization into accordance…
Q: X wishes to file his 2019 income tax return. To avoid penalty, he must file his return on or before:…
A: For individuals, income tax return filing due date when their financial year ends on December 31 is…
Q: April Issued 5,000 share of Common Stock, $2 par for $17 per share. Record the journal entry.
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: please answer 4 and 5
A: Answer:
Q: Ridley Corporation is a manufacturing company in the Caribbean. The company sponsors a defined…
A: A pension plan amount is refers to as a amount that is promised by the employer under the pension…
Q: by stream. She will construct a pipeline to analysis of costs for various pipe sizes is as alled…
A: The answer has been mentioned below.
Q: Babak Industries is a division of a major corporation. Last year the division had total sales of…
A: Formula: Division Turnover = ( Sales revenue / Average operating Assets ) x 100
Q: Problem 5 Ready Flashlights, Inc. needs P300,000 to take a cash discount of 2/10, net 70. A banker…
A: The Effective Annual Rate (EAR) seems to be the interest rate received or payable on a loan as a…
Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…
A: Management Assertions: For financial records and disclosures to be accurate and suitable, assertions…
Q: Muscat company purchased office supplies costing OMR2,000 and debited Office Supplies for the full…
A: The costs of the assets or services employed are referred to as expenses. Expense Journal entries…
Q: SLM #9 Directions. Prepare a single-step Income Statement For the year ended Dec. 31, 2019, at space…
A: Introduction:- A single-step income statement shows a straightforward or simple view of a company's…
Q: Like Company manufactures a number of products. The standards relating to one of these products are…
A: Calculation of difference between total Standard Cost and Total Actual Cost Standard Actual…
Q: Common sized balance sheets the following end of the year balance sheets in millions were adapted
A: The balance sheet is given as,
Q: What is the amount of gross taxable compensation income subject to normal tax?
A: As per our protocol we provide solution to the one question only but as you have asked two questions…
Q: A home theater system is on sale for $777. If the list price is $925, find the percent of markdown.…
A: Markdown means the reduction in the price of the sale value of goods. Formula: Markdown amount =…
Q: Transactions of Laguna Company during January follows: Pag-IBIG cont 1100.00 Income tax w/held…
A:
Q: 5 Hello, can someone make a pay off metrix for this? The situation is that an athlete is following…
A: If the athlete chooses to use illegal substances to enhance performance ability, they lose their…
Q: The following are the income of a resident citizen for the period: Interest Income from an…
A:
Q: Swasey Company provided the following partial comparative balance sheets and the incomestatement for…
A: Statement of cash flows forms a part of financial statements of the business and is prepared with a…
Q: Identify which taxes apply to the following situations and state whether the tax is direct or…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Harry is divorced with net income for tax purposes of $50,000. His 21 year old dependent daughter,…
A: In this question, we will calculate Harry’s medical expenses tax credit for 2021, we have to choose…
Q: On January 1, 2021, Hosana Co. sold equipment in exchange for a P 850,000, 4 year, 11% note,…
A: Lets understand the basics. Compounded interest means interest on interest. In other words, it is a…
Q: Can Job Order Cost System be used for professional service businesses ?
A: Job order costing is a technique of determining the cost of producing each product. This costing…
Q: The chief financial officer of Laurent Ltd has asked you to calculate the taxable income and prepare…
A: Calculation of taxable income Particular Case 1 Case 2 Case 3 Case 4 Pre - tax accounting…
Q: Required
A: The contribution margin is the percentage of total contribution to the total sales amount. This…
Q: - On the basis of the following data, the general manager of Hawkeye Shoes Inc. decided to…
A: An income statement is one of several financial statements used to evaluate a company's financial…
Q: The Boxwood Company sells blankets for $60 each. The following was taken from the inventory records…
A: Gross profit = Sales - Cost of goods sold
Q: QUESTION 1 *COGS $390,000 •GM 60% %3D •Store size: 20 ft x 25 ft. •2,500 transactions •5,000 units…
A: The question is related to Marginal Costing and Cost Volume Profit Analysis.
Q: a two-bedroom $650 apartment to a cond Dwns two golf courses, a lake and an activ ses include:
A: Personal Cash flow statement reflects the cash inflows and outflows of an individual in order to…
Q: total assessed property value in Mountain View is $74,200,000. As the tax assessor, you have been…
A: As per our protocol we provide solution to the first three sub-parts but as you have asked multiple…
Q: Jan. Issued 1,000 shares of Common Stock, $2 par for $12 per share. Record the journal entry.
A: Lets understand the basics. For recording financial event and transaction, journal entry is required…
Q: Muscat company purchased office supplies costing OMR2,000 and debited Office Supplies for the full…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: On January 1, 2021, X Company bought a machine for $44,000. It's now January 1, 2022, and management…
A: A replacement decision refers to the decision to replace a present asset with a newer model of the…
Q: erris Company began January with 8,000 units of its principal product. The cost of each unit is $7.…
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods…
Q: Dominador's Pizza Inc. enters into a franchise agreement on December 31, 20x7 giving Doming Corp.…
A: Answer - Part 8 - Correct Option is Option - A Zero . Because, As of December 31, 20x7, Revenue…
Q: Fondren Machine Tools has total assets of $3,180,000 and current assets of $882,000. It turns over…
A: Solution Equity = Assets - Debt. = 3180000-1410000. = 1770000. Fixed…
Q: 1. Which of the following statements is FALSE? A. Cash includes coins, bills and checks. B. Prepaid…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: 4/ 2 Purchased a company automobile for $32.000, with a cash down payment of S1,000 and the…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
I know the answers to the requirements. I only need an explanation as to how was the variable cost in cost per muffler is 50
Step by step
Solved in 2 steps
- 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)1/ Philadelphia Acoustics builds innovative speakers for music and home theater systems. Identify each cost as variable (V), fixed (F), or mixed (M), relative to number of speakers produced and sold. 1. Units of production depreciation on routers used to cut wood enclosures. 2. Wood for speaker enclosures. 3. Patents on crossover relays. 4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals. 5. Crossover relays. 6. Straight-line depreciation on manufacturing plant. 7. Grill cloth. 8. Cell phone costs of salesperson. 9. Glue. 10. Quality inspector's salary 2/Gabrick Company sells a product for $30 per unit. Variable costs are $20 per unit, and fixed costs are $2,500 per month. The company expects to sell 560 units in September. Prepare an income statement for September using the contribution margin format.The construction Company lands a project for painting offices with the following information available with regards to cost of paint: Paint 1 (Prepping) R78.00 Paint 2 (Finishing) Direct Material Cost per unit R92.00 Direct labor Cost per unit R48.00 R68.00 Direct overhead cost per unit R17.00 R16.00 Fixed cost per unit R135.00 R187.00 Sales price per unit R325.00 R520.00 The new supplier offers paint 1 at R187 and Paint 2 at R155 2.1 Calculate the lifecycle cost of the painting Job 2.2 Should the company buy 1 or both paints from current supplier or new supplier? I.
- Classifying costs The following is a list of costs that were incurred in the production and sale of all-terrain vehicles (ATVs). a.Attorney fees for drafting a new lease for headquarters offices. b.Cash paid to outside firm for janitorial services for factory. c. Commissions paid to sales representatives, based on the number of ATVs sold. d.Cost of advertising in a national magazine. e.Cost of boxes used in packaging ATVs. f. Electricity used to run the robotic machinery. g.Engine oil used in engines prior to shipment. h. Factory cafeteria cashier's wages. i. Filler for spray gun used to paint the ATVs. j. Gasoline engines used for ATVs. k.Hourly wages of operators of robotic machinery used in production. I. License fees for use of patent for transmission assembly, based on the number of ATVs produced. m. Maintenance costs for new robotic factory equipment, based on hours of usage. n. Paint used to coat the ATVs. o.Payroll taxes on hourly assembly line employees. p.Plastic for outside housing of ATVs. q.Premiums on insurance policy for factory buildings. r. Properly taxes on the factory building and equipment. s.Salary of factory supervisor. t. Salary of quality control supervisor who inspects each ATV before it is shipped. u.Salary of vice president of marketing. v. Steering wheels for ATVs. w. Straight-line depreciation on the robotic machinery used to manufacture the ATVs. x.Steel used in producing the ATVs. y.Telephone charges for company controller's office. z.Tires for ATVs. Instructions Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an "X" in the appropriate column.Pia Manufacturing Company has developed the following overhead cost formulas: (refer to image) Based on these cost formulas. The total overhead cost expected if 200 machine hours are worked is: Cost Formula Depreciation P500 Set up P400 plus PO.20 per machine-hour P50 plus PO.25 per machine-hour PO.40 per machine-hour Lubrication Utilities a. P620 b. P900 c. P170 d. P1,1201. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: D. First Cost P24,000 1,300 11,600 P30,000 P1,360 P49,600 Power per year Labor per year P2,400 4,200 P52,000 P2,020 2,000 9,320 Maintenance per year 2,800 1,900 1,300 700 Taxes and insurance 3% 3% 3% 3% Estimated life 5 years 5 years 5 years 5 years Money is worth 17% before taxes to the company. Which machine should be chosen?
- Choose from the dropdown given whether the associated cost or benefit is relevant/irrelevant to the related decision. Relevant/ Decision Cost or Benefit Irrelevant $300 repair bill to fix brakes. 1 Decision: Should you take the bus or drive your car to school for the semester? Unavoidable fixed overhead. Decision: Eliminate an unprofitable segment. 2. 3. Decision: Make or buy a component used in manufacturing a product. Selling price of the final product. Variable overhead 4. Decision: Accept a special order. The cost of prod ucing an unfinished and unassembled table Decision: Sell unassembled and unfinished furniture or sell finished assembled furniture. 5 Decision: XYZ Tire Company is considering dropping one of its 10 models of tires 6 Common fixed costs. Decision: ABC Golf Co. produces custom golf clubs and is considering purchasing the putter from a manufacturer 7. Direct labor of custom putters Decision: A major regional airline has been approached to provide 200 seats at a…Help Save Recher Corporation uses part Q89 In one of Its products. The company's Accounting Department reports the following costs of producing the 7,100 units of the part that are needed every year. Par Unit $ 7.50 $ 4.10 $ 8.00 $ 3.00 $ 2.50 $ 1.30 Direct materials Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead An outside supplier has offered to make the part and sell it to the company for $26.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $3,200 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the…What should be done? Problem 2 (Make or Buy a Component) Diamond Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Diamond for P200 per unit. To evaluate this offer, Diamond lInc., has gathered the following information relating to its own cost of producing the thermostat internally. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, common, but allocated Total cost 40% supervisory salaries; 60% depreciation of special equipment (no resale value) Per unit P 60 80 10 50 15,000 units per year P. 900,000 1,200,000 150,000 750,000 1.500.000 P 4, 500,000 100 P 300 Required: 1. Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, should the outside supplier's offer be accepted? Show all computations. 2. Suppose…
- Required information [The following information applies to the questions displayed below.] Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer- assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: Direct material Direct labor (DLH denotes direct-labor hours) Variable overhead Fixed overhead* Computer-Assisted Manufacturing System $ Volume 0.5DLH @ $25.50 0.5DLH @ $16.50 9.00 12.75 8.25 $4,410,000 units Labor-Intensive Production System $ 0.8DLH @ $21.00 0.8DLH @ $16.50 *These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. 9.90 16.80 13.20 $2,730,000 The company's marketing research department has recommended an introductory unit sales price of $75.00. Selling expenses are estimated to be $900,000…Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month 1 2345 67 000 8 9 10 11 12 Maintenance Costs $ 2,740 2,900 3,050 3,160 3,240 3,210 3,150 2,990 2,760 2,360 2,370 2,590 Machine Hours 1,830 1,910 1,990 2,010 2,040 2,020 2,000 1,980 1,840 Required 1 Required 2 1,240 1,440 1,730 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception…Mozaic Inc. has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system (CAM) or a labor-intensive production system (LIP). The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows: www CAM System LIP System Direct Material $5.00 $5.60 Direct Labor (DLH) 0.5 DLH x $12 $6.00 0.8 DLH x $9 $7.20 Variable Overhead 0.5 DLH x $6 $3.00 0.8 DLH x $6 $4.80 Fixed Overhead* $2,440,000 $1,320,000 * These costs are directly traceable to the new product line. They would not be incurred if the new product were not produced. The company's marketing research department has recommended an introductory unit sales price of $30. Selling expenses are estimated to be $500,000 annually plus $2 for each unit sold. (Ignore income taxes.) Required: 1. Describe the circumstances under which the firm should employ each of the two manufacturing methods. 2. Identify some business…