Munabhai !Required information[The following information applies to the questions displayed below.]Adger Corporation is a service company that measures its output based on the number of customers served. Thecompany provided the following fixed and variable cost estimates for budgeting purposes and the actual results forMay as shown below:RevenueEmployee salaries and wagesTravel expensesOther expensesFixed Element perMonthVariable Elementper Customer$ 70,000Served$ 6,300$ 1,700Actual Total forMay$ 49,000$ 199,000$ 127,300$ 620$ 18,000$ 46,100When preparing its planning budget, the company estimated it would serve 30 customers per month; however,during May the company actually served 35 customers.Required:1. What amount of revenue would be included in Adger's flexible budget for May?Amount of revenue included in the flexible budget

Flexible Budget for variable cost is calculated by multiplying budgeted variable cost per activity…

Answered: Required information [The following…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter1: Introduction To Cost Management

Section: Chapter Questions

Problem 1E: Classify each of the following actions as either being associated with the financial accounting...

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The following data relate to Department no. 3 of Tsing Corporation: Segment contribution margin 540,000 Profit margin controllable by segment manager 310000 Segment profit margin 150000 On the basis of this information, Department no. 3's variable operating expenses are: Select one: a. $80,000. b. $160,000. c. $230,000. d. $390,000. e. not determinable.
The controller of Ashton Company prepared the following projected income statement: Sales $97,000 Total variable cost 32,850 Total fixed cost 43,800 Operating income $20,440 Required: Calculate the contribution margin ratio?
The data to the right pertain to the operating budget of a manufacturing company. Compute the following (a) contribution margin (b) contribution rate (c ) break - even point in sales dollars \table[[\ table[[Sales], [Fixed cost], [Total variable cost]], \table[[$145,000
Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That Differs from the Data Period Refer to the information for Pizza Vesuvio on the previous page. Assume that this information was used to construct the following formula for monthly labor cost. TotalLaborCost=5,237+(7.40EmployeeHours) Required: Assume that 4,000 employee hours are budgeted for the coming year. Use the total labor cost formula to make the following calculations: 1. Calculate total variable labor cost for the year. 2. Calculate total fixed labor cost for the year. 3. Calculate total labor cost for the coming year. Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Classify each of the following actions as either being associated with the financial accounting information system (FS) or the cost management information system (CMS): a. Determining the total compensation of the CEO of a public company b. Issuing a quarterly earnings report c. Determining the unit product cost using TDABC d. Calculating the number of units that must be sold to break even e. Preparing a required report for the SEC f. Preparing a sales budget g. Using cost and revenue information to decide whether to keep, or drop, a product line h. Preparing an annual statement of financial position that conforms to generally accepted accounting principles (GAAP) i. Using cost and revenue information to decide whether to invest in a new production system or not j. Reducing costs by improving the overall quality of a product k. Using a debt-equity ratio and liquidity ratios from a balance sheet to assess the likelihood of bankruptcy l. Using a public companys financial statements to decide whether or not to buy its stock
The accountant for PNW, LLC has prepared a contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units) Variable expenses Contribution margin Fixed expenses $540,000 405,000 135,000 130,500 Net operating income $ 4,500 Assuming that the information provided is within the relevant range, the contribution margin ratio is closest to:
3)Some cost information of the enterprise, which calculates its costs according to the Standard Cost Method, is as follows.Total Budgeted Fixed General Production Expenses = 2.000.-₺Unit Budgeted Variable General Production Expense = 1,10.-₺/brTotal Actual Direct Labor Hours = 1.500 DİSTotal Standard Direct Labor Hours = 1.300 DISRequested: Calculate the “Efficiency Difference of General Production Costs”. A. 120.-₺ positiveB. 320.-₺ negativeC. 120.-₺ negativeD. 320.-₺ positiveE. 220.-₺ negativeF. 220.-₺ positive
The following relates to Department no.2 of Niekut Corporation Segment contribution margin: 472,500 Profit margin controllable by segment manager 87,000 Segment profit margin 23,200 The amount that would be used to evaluate the performance of department no. 2's manager is:
The managing director of a law firm has the monthly data (below) on total overhea labor hours to bill to clients. Develop a simple linear regression model between bi costs. \table [[\table[[Overhead], [Costs]], \table [[Billable], [Hours ]]], [375000, 3000], [425000, 4000], [445000, 5000], [496000, 6000], [580000, 7000], [605000, 8000]] Round the coefficient to two decimal places, do not include the $ symbol. For ea billable hours, the predicted overhead costs are estimated to increase by 109.12
Recalculate the customer-level operating income using the number of written orders but at their actual $8 cost per order instead of $15 (except for DC, whose actual cost is $15 per order). How will KC Corporation evaluate customer-level operating cost performance this period?

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