FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Part "Mendes" is used in one of Shawn's products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Direct Materials $4.79 Direct labor $1.16 Variable overhead $2.68 Supervisor's salary $3.38 Depreciation of special equipment $2.67 Allocated general overhead $1.54 An outside supplier has offered to make the part and sell it to the company for $14.86 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 $5651 of these allocated general overhead costs would be avoided. What would be the impact on total net income if Shawn accepted the supplier's offer? Round only your final answer to the nearest…arrow_forwardshow answers for letters A and Barrow_forwardI need need help with this one thank you!arrow_forward
- A5arrow_forwardam. 100.arrow_forwardRequired information [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $ 7.00 $ 4.00 $ 1.50 $ 5.00 $ 3.50 $ 2.50 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expensearrow_forward
- Sheridan Company produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 65000 Direct labor 170000 Variable overhead 85000 Fixed overhead 175000 If Sheridan buys the part from an outside supplier, $30000 of the fixed overhead is avoidable.What is the relevant cost per unit of part A12E? $99 $70 $93 $64arrow_forwardCost of Services Sold Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials Direct labor Variable overhead Fixed overhead ? $472,500 15,000 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Required: Beginning $4,000 2,600 Ending There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. 1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0". Happy Home Helpers, Inc. Statement of Cost of Services Sold For the Coming Year 2. How does this cost of services sold…arrow_forwardNeed help with a practice question from the last unitarrow_forward
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